What type of method for entering foreign markets is considered to pres

QUESTION

What type of method for entering foreign markets is considered to present the highest risk?

What will be an ideal response?

ANSWER

Answer: A foreign subsidiary presents the highest level of risk for a U.S. company looking to do business in a foreign country.
Explanation: As sole owner, a parent company has complete control over its foreign subsidiary. However, this also means it assumes all the risk if its product or service fails or if the government of the foreign country turns against it.