Question

Axiom International wants to expand its operations to a country that is politically, culturally, and economically different from its home country. The firm needs to select a mode of entry which would give it access to local knowledge, allow sharing of development costs and risks, and also be politically acceptable. Which of the following modes of entry into foreign markets is most suitable for Axiom International?
A. Wholly owned subsidiary
B. Joint venture
C. Exporting
D. Greenfield investments
E. Licensing

Answer 1

Answer:

B. Joint venture

Explanation:

Since what Axiom needs is a mode of entry which would give it access to local knowledge, allow sharing of development costs and risks, and also be politically acceptable then joint venture would be the most suitable.

Joint venture is a businesssituation where two or more parties join resources together to accomplish a specific task