Question

An example of a global strategy which is low in risk as it avoids the cost of establishing production operations in another country franchising licensing export globalization

Answer 1

Answer: Export

The export of goods and services refers to producing goods and services in the domestic country and sold in foreign countries.

While exporting, the exporter establishes the facilities for producing the goods in the domestic country and exports the finished product.

The strategies of franchising and licensing, the costs of establishing and setting up operations are low. However, a company puts itself at a risk as the franchisee or the licensee may eventually end up being a competitor in the foreign market.

Globalization involves setting up operations in a foreign country right from scratch. The costs and risks associated with strategy are extremely high.