Asked by Julia Lavier on Jul 16, 2024

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In the context of entry tactics available for different entry modes, which of the following is a difference between the "make" tactic and the "buy" tactic?

A) Licensing uses the "make" tactic, whereas a turnkey project uses the "buy" tactic.
B) Joint ventures use the "make" tactic, whereas licensing uses the "buy" tactic.
C) Unlike with the "make" tactic, with the "buy" tactic, a firm develops its own operations in a new market.
D) Unlike with the "make" tactic, with the "buy" tactic, a firm can acquire existing franchisee operations to enter a new international market.

"Make" Tactic

A strategy within businesses to produce goods or services in-house, as opposed to outsourcing from external suppliers.

"Buy" Tactic

A strategy in investment or marketing, suggesting the acquisition of assets or products as a beneficial move.

  • Identify the differences between several international market entry strategies including "make," "buy," "ally," and additional methods.
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Verified Answer

HM
Haley MorrisonJul 20, 2024
Final Answer :
D
Explanation :
The "make" tactic involves a firm developing its own operations from the ground up in a new market, while the "buy" tactic involves acquiring or partnering with existing operations, such as through franchising or acquisitions, to enter a market.