Which List Correctly Ranks the Methods of Entering the Global

question 42

Multiple Choice

Which list correctly ranks the methods of entering the global marketplace in increasing order of risk?

• A) exporting, licensing and franchising, contract manufacturing, joint venture, and direct investment
• B) importing, contract manufacturing, licensing and franchising, joint venture, and direct investment
• C) licensing, franchising, contract manufacturing, joint venture, direct investment, and exporting
• D) franchising, contract manufacturing, joint venture, direct investment, importing, and licensing
• E) importing, contract manufacturing, joint venture, direct investment, and exporting.

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Definitions:

Federal Trade Commission

A US government agency whose primary purpose is to enforce civil antitrust law and promote consumer protection.

Interstate Commerce

The trade, traffic, or transportation of goods, services, or money across state boundaries within the United States, regulated by federal government.

Price Discrimination

A pricing strategy where identical or very similar goods or services are sold at different prices by the same provider in different markets or to different buyers.

Willingness to Pay

The highest price a consumer is prepared to pay for a good or a service.