Exporting is an entry strategy that requires the Blank______ financial risk and allows a(n) Blank______ return to the firm.Multiple choice question.least; limitedmost; unlimitedleast; unlimitedmost; limited
Question
Exporting is an entry strategy that requires the Blank______ financial risk and allows a(n) Blank______ return to the firm.Multiple choice question.least; limitedmost; unlimitedleast; unlimitedmost; limited
Solution
The correct answer is "least; limited". Exporting as an entry strategy requires the least financial risk because it involves fewer investments in resources compared to other strategies like joint ventures or direct investment. However, it also allows a limited return to the firm because the firm does not have full control over the foreign market and may have to share profits with local distributors or agents.
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