Which method of international expansion poses the greatest amount of risk?Multiple Choicejoint venturewholly owned foreign subsidiaryfranchisingexportinglicensing
Question
Which method of international expansion poses the greatest amount of risk?Multiple Choicejoint venturewholly owned foreign subsidiaryfranchisingexportinglicensing
Solution
The method of international expansion that poses the greatest amount of risk is the wholly owned foreign subsidiary. This is because it involves the most investment and exposure to foreign market risks. The company has full control and therefore full responsibility for the operations, and any losses or failures fall directly on the company. It also requires a deep understanding of the foreign market, and mistakes can be costly.
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