Which of the Following Market Entry Strategies Requires the Lowest

question 42

Multiple Choice

Which of the following market entry strategies requires the lowest level of investment from a company?

• A) indirect exporting
• B) direct exporting
• C) joint venture
• D) joint ownership
• E) direct investment

Recognize the characteristics of a perfectly competitive market, including demand curve elasticity.

Grasp the concept of economic profits and how they approach zero in the long run in competitive markets.

Understand the role and impact of barriers to entry and exit in competitive industries.

Explain how market prices adjust to shocks in supply and demand in competitive industries.

---

Definitions:

Market Development

A growth strategy where a business seeks to sell its existing products or services into new geographic areas or markets to attract new customers.

Yum! Brands

A multinational corporation that operates or licenses Taco Bell, KFC, Pizza Hut, and other fast-food restaurant chains worldwide.

Market Penetration

A strategy to increase sales of existing products or services on current markets, thereby increasing the market share.

Chocolate Chip Cookie Dough

An uncooked blend of ingredients used to make chocolate chip cookies, often enjoyed as a snack.