Serge owns CloudCar, a company that manufactures the world’s first fly

QUESTION

Serge owns CloudCar, a company that manufactures the world’s first flying sedan. Business has taken off, and every U.S. driver has one.

It’s time to take CloudCar global. The company has substantial capital, and the board wants to maintain strict control over company assets. Which approach should they take?
A) exporting
B) licensing
C) franchising
D) subsidiaries
E) joint ventures

ANSWER

Answer: D
Explanation: D) Given its resources and potential high global demand, CloudCar can likely pursue the riskiest option: establishing foreign subsidiaries.