Asked by
Emilee Spangler
on Nov 22, 2024
Verified
In the context of the modes of entering a foreign market, identify a difference between nonequity modes and equity modes.
A) Nonequity modes carry more risk than equity modes.
B) Nonequity modes bring fewer rewards than equity modes.
C) Unlike equity modes, nonequity modes allow a firm to get close to customers.
D) Unlike equity modes, nonequity modes solely include joint ventures.
Nonequity Modes
Forms of international business that do not involve direct ownership of assets in another country, such as franchising or licensing.
Equity Modes
Refers to the different ways through which a company can enter and participate in foreign markets, such as joint ventures, mergers, or acquisitions.
- Distinguish between equity-based and non-equity-based market entry strategies.
Verified Answer
ZA
Learning Objectives
- Distinguish between equity-based and non-equity-based market entry strategies.
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