The Lowest Cost and Lowest Risk Way to Enter a Foreign

question 37

Multiple Choice

The lowest cost and lowest risk way to enter a foreign market is through

• A) a joint venture.
• B) licensing.
• C) management contracting.
• D) a direct investment.
• E) exporting.

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Definitions:

Merchandising Company

A business that purchases finished goods for resale, making a profit on the difference between the sale price and the purchase price.

Cash Outflow

Money or cash spent by a company for operating expenses, investments, and financing activities.

Cash Inflow

Funds or amounts of money received by an organization, either from operational activities such as sales or non-operational activities like investments and financing.

Noncash Investing

Investment activities that do not involve direct cash transactions, such as acquiring assets through issuance of stock or exchange of other assets.