QAEconomics › Of the five strategies for entering new markets, direct investment creates the
Q

Of the five strategies for entering new markets, direct investment creates the

A. least investment cost.

B. greatest potential risk.

C. most franchisee control.

D. best opportunity for strong strategic alliances.

E. greatest coordination of efforts of global and local partners.

A

Answer: E. Greatest coordination of efforts of global and local partners.

Direct investment (also known as foreign direct investment or FDI) provides an avenue for the local economy to grow while using resources from the foreign investors. The result of this is a coordination of the efforts of both the local and international partners, all of which benefit both parties.

3 years ago
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