As a firm changes its global market-entry strategy from exporting to direct investment,all of the following increase EXCEPT:
A)marketing control.
B)risk.
C)divestiture.
D)profit potential.
E)financial commitment.

Question

Quizplus · Accepted Answer

Divestiture is the act of selling off or disposing of business assets or divisions, and it does not increase as a firm changes its global market-entry strategy from exporting to direct investment. However, all the other options increase as the level of involvement in a foreign market increases through direct investment.

As a Firm Changes Its Global Market-Entry Strategy from Exporting