contestada

In the context of the strategies for reaching global markets, which of the following statements is true of direct investment?

a. The cost involved in direct investment is high.
b. It is the most basic level of international market development.
c. It represents an especially strong opportunity for small firms.
d. Foreign franchising is a type of direct investment.

Respuesta :

Answer:

B. It is the most basic level of international market development.

Explanation:

In the context for hitting or reaching of the global market, there are key strategies that play out in getting what is needed to keep a market; these factors consists of exporting, franchising, joint ventures, licensing, foreign subsidiaries, foreign direct investment and strategic alliances.

Exporting is explained as the process of transporting a certain goods or services over international borders for trade or sale and this well known to be the first step and important strategy at a point like this.

This is why for direct investments, the option that it is the most basic level of international market development is the true statement above.