The Entry Strategy That Requires the Highest Levels of Investment

question 12

Multiple Choice

The entry strategy that requires the highest levels of investment and exposes firms to significant risks is:

• A)direct investment.
• B)joint venture.
• C)franchising.
• D)licensing.
• E)strategic alliance.

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Definitions:

Mediation

A conflict resolution method involving a neutral third-party mediator who helps disputing parties reach a voluntary, mutually acceptable agreement.

Arbitration

A dispute resolution process in which a neutral third party makes a binding decision to resolve a conflict between parties.

Effective Communication

The exchange of information in a way that is clearly understood by all parties involved.

Fundamental Barriers

Core obstacles that impede progress, often requiring significant effort or change to overcome.