1. Advantages and Disadvantages of Modes of Entry to Foreign Ma
The main disadvantage of licensing is the risk of possibility of losing control over the assets in which the licensor has given the licensee. ... FDI involves large amounts of investment which is usually very risky unlike exporting and licensing which tends to have less risk. This risk is usually due to the state of the country in which the company is investing in, for example, the countries economy. ... However there are many disadvantages to FDIs, they major disadvantage being the high risk compared to other modes of entering foreign markets. ... A strategic alliance is a business relationsh...
- Word Count: 2198
- Approx Pages: 9
- Grade Level: Undergraduate