Which Method of International Expansion Poses the Least Amount of Risk

question 110

Multiple Choice

Which method of international expansion poses the least amount of risk?

• A) Exporting
• B) Franchising
• C) Licensing
• D) Wholly owned subsidiary
• E) Joint venture

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Definitions:

Anticipates

The action of foreseeing or preparing for future events or needs.

Marginal Cost

The cost incurred by producing one additional unit of a product or service, crucial for decision-making in production and pricing strategies.

Marginal Benefit

The additional satisfaction or value obtained from acquiring one more unit of a product or service.

Expected Total Return

The sum of all anticipated earnings from an investment, including capital gains, interest, and dividends, over a specified period, reflecting its potential profitability.