Companies Seek to Limit Risk Upon Entering a New and Uncertain

question 6

Multiple Choice

Companies seek to limit risk upon entering a new and uncertain foreign market for the first time by choosing X as their initial entry strategy.

• A)X = Acquisition of an existing local company.
• B)X = Licensing their products or services to an existing local company.
• C)X = Doing a joint venture with a local company to learn from them.
• D)X = An export strategy such as direct mail or a website.

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Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.