Question

Generally, firms entering foreign markets begin with:

Answer 1

Answer:

a. less risky strategies first.

Explanation:

When find enter into foreign markets their knowledge and experience in the market space is limited. They will most likely implement less risky strategies of doing business bearlier on.

As they get to understand the market dynamics of the foreign country they are more confident in doing more risky transactions.

For example they can start with local production and exporting to the foreign country first. Then later open up operations in the foreign country.

Answer 2

Answer: a. less risky strategies first

Explanation: Due to limited expertise and knowledge, firms usually enter new, foreign markets with less risky strategies first—such as exporting (usually because the firm does not own or establish anything in the country and only ships its products to consumers or business buyers in the foreign market)—then moves on to riskier strategies as their knowledge and experience in the market grows and solidifies.