Asked by Dhvani Chodavadia on Jun 06, 2024
Verified
Miller Fabrics wants to minimize its risk when entering the Asian market. What strategy should the company use to have the least risk?
A) exporting
B) franchising
C) a strategic alliance
D) a joint venture
E) direct investment
Asian Market
A regional market comprising various countries in Asia, known for its dynamic growth, diverse cultures, and significant economic influence globally.
Minimize Risk
Strategic actions aimed at reducing the likelihood of unfavorable outcomes or potential losses in business operations or decisions.
- Understand the economic considerations and risk analyses crucial in choosing approaches for entering markets.
Verified Answer
PP
Phileene PeagchJun 08, 2024
Final Answer :
A
Explanation :
Exporting involves the least amount of investment and risk. Miller Fabrics can use indirect exporting by selling goods to an intermediary who then sells them in the Asian market, or use direct exporting by setting up an export department within the organization. This helps Miller Fabrics establish a foothold in the market with minimum investment and risk. Franchising, strategic alliance, joint venture, and direct investment involve more investment, commitment, and risk.
Learning Objectives
- Understand the economic considerations and risk analyses crucial in choosing approaches for entering markets.