Which of the following global entry strategies involves the least amount of control of a product or service in the foreign market?

• A. Franchising
• B. Direct investment
• C. Exporting
• D. Joint venture

Answer: (C)

When comparing global entry strategies, the level of control over foreign operations matters most. Exporting involves the least control because the firm simply ships domestically produced goods to foreign markets through intermediaries like distributors or agents, without owning or managing any foreign facilities. The company sets product design and branding, but most marketing, sales, and distribution decisions are left to local partners, and there is little to no direct involvement in day-to-day operations abroad.

Franchising, on the other hand, hands over the right to operate a business under the brand and system to local operators, with ongoing standards and oversight, which requires more control than exporting. Direct investment means establishing or acquiring foreign facilities, giving the firm strong, direct control over operations. A joint venture involves co-owning and co-managing the foreign venture with a partner, spreading control rather than concentrating it fully with the parent company.