Which of the following requires the least investment overseas? A greenfield venture Licensing Informal alliance Exporting
Which of the following requires the least investment overseas?
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A greenfield venture |
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Licensing |
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Informal alliance |
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Exporting |
Homework Answers
Answer: Informal alliance requires the least investment overseas.
In an alliance , an organization moves into a market along with other organization. Informal alliance is the “least formal method” to have the entry in the global market. This does not carry any signed document rather have a simple statement by one company to another company. For example, one company help another company to sell the product in another company’s market so that the first company will help in selling another company’s product in it’s market. Thus, this needs a little investment and lesser control by a company. Therefore, informal alliances will not have any ‘equity investment’ by any of the party.
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Which of the following requires the least investment
overseas?
A greenfield venture
Licensing
Informal alliance
Exporting
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