Answer:
The correct answer is option B
B. Exporting
Explanation:
When looking at "Deciding on the international entry mode" section (8-3). The classification from low to high risk is; indirect exporting, direct exporting, licensing, franchising, joint ventures, branch offices, wholly owned subsidiaries.
Answer:
a. Strategic alliance
Explanation:
A strategic alliance is when two or more companies come together to achieve a certain objective. The companies that come together still remain independent.
Some of the reasons for a strategic alliances include-
1. Penetrating a new market.
2. Increasing market share
3. Increasing economies of scale.
Strategic alliances reduces cost because the number of companies that would bear the cost of a project has increased.
A subsidiary is a company that is wholly owned by another company known as the parent company. A subsidiary doesn't lead to cost reduction.
In acquisition, a company gains control by purchasing more than 50% of a company's shares. It doesn't lead to cost reduction.
Export is selling goods and services abroad.
Licensing is giving another company the permission to make use of its property in its production process.
