Of the following market-entry mode strategies, the group of strategies arranged from "less risk" to "more risk" for the market entrant is:

a. foreign direct investment, exporting, licensing

b. exporting, licensing, joint venture

c. franchising, joint venture, licensing

d. joint venture, foreign direct investment, licensing e. all market-entry strategies have unpredictable risk

 

Answer:

b. exporting, licensing, joint venture

Step-by-step explanation

-Exporting entails sending of the products in one of the nations where they are then sold in another

-Exporting is the least risky strategy that is viewed as most attractive by diverse businesses.

-Licensing is where the licensor firm avails products to the licensee which is the foreign firm through presenting the right for utilizing the manufacturing process of licensor together with sales knowledge, patents and even brand name. Licensing is relatively risky and least return giving.

-joint venture represents the partnership existing between the foreign and the domestic firm where both invest money, and share both control and the ownership of the new venture. Joint ventures are abit risky and have low flexibility