General Studies · International Business
Arrange the following modes of entry into foreign markets in sequential order, starting from the mode with the least resource commitment, risk, control, and profit potential to the highest: (A) The company hires a local manufacturer to produce the product. (B) The company starts exporting through domestic export agents and export management companies. (C) The company joins hands with a local investor and forms a firm in which both share ownership and control. (D) The company starts exporting using its own domestic export department and overseas sales branches. (E) The company offers a complete brand concept and operating system to an investor in return for a certain fee. Choose the correct answer from the options given below:
- 1(D), (B), (E), (C), (A)
- 2(B), (D), (E), (A), (C)✓
- 3(B), (D), (A), (E), (C)
- 4(D), (B), (A), (E), (C)
Correct answer
(B), (D), (E), (A), (C)
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