Asked by Josmary Marquez on Jun 05, 2024

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Simpton Corp. wants to expand into the Mexican market. It has the financial resources, wants to control business operations, and has had considerable success marketing to Hispanics in the United States. Simpton Corp. will likely use ________ to expand into the Mexican market.

A) franchising
B) exporting
C) a joint venture
D) direct investment
E) a strategic alliance

Direct Investment

An investment in the form of a controlling ownership in a business in one country by an entity based in another country.

Mexican Market

Can pertain to either the physical marketplaces within Mexico known for their vibrant commerce or the broader economic and consumer market of Mexico.

Financial Resources

Economic capital or funds available to a business or individual for the purpose of investment, operational needs, or growth.

  • Gain insight into diverse approaches for global market penetration and expansion.
  • Discern the financial aspects and risk considerations integral to determining market entry strategies.
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Hà D??ng Ph?m ??Jun 11, 2024
Final Answer :
D
Explanation :
Direct investment would give Simpton Corp. full control over its operations in Mexico, which aligns with its desire for control. It also has the financial resources to make such an investment. Exporting would not give Simpton Corp. the level of control it desires, while franchising and a strategic alliance would also mean sharing control with another party. A joint venture may be an option, but Simpton Corp. may prefer the autonomy of direct investment.