The simplest way to enter a foreign market is through
A. joint venturing
B. licensing
C. management contracting
D. direct investment
E. exporting
Answer: (E) Exporting is the simplest way to enter a foreign market because all of the goods are manufactured or produced in the home country. In joint venturing (A), the company has to join with a partner to set up production facilities abroad which help to complicate entry, and dilute control. Licensing (B) and management contracting (C) are methods, or types, of joint venturing and are not correct. Direct investment (D) has the biggest involvement because the company develops foreign-based assembly or manufacturing facilities. This makes the entry into the foreign market much more difficult, not simple.