Which of the following does NOT accurately characterise the conduct of international business?

A) Global sourcing, exporting/importing and licensing/franchising are market entry strategies for conducting international business.
B) When a business is just getting started internationally, direct investment strategies are the usual way to begin.
C) Market entry strategies involve the sale of goods or services to foreign markets but do not require major capital investments.
D) Direct investment strategies require major capital commitments but create rights of ownership and control over foreign operations.
E) Joint ventures and wholly owned subsidiaries are direct investment strategies for conducting international business.

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Alexander Bigsby · Accepted Answer

Final Answer : B, Explanation :  Direct investment strategies, such as creating joint ventures or wholly owned subsidiaries, typically require significant resources and commitment. They are not usually the first step for businesses entering international markets. Instead, companies often start with less resource-intensive strategies like exporting, licensing, or franchising.

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