Many companies are drawn to enter the Chinese market. Which of the following methods would a company that is both new to foreign market activities and also is not yet ready commit to a significant financial investment in the market be likely to pursue?

A) representative office

B) Licensing

C) Wholly owned subsidiary

D) Exporting

E) Franchising

D) Exporting

Explanation:

Exporting is an activity involved in selling goods to the countries as all companies or countries does not have same skill and resources to produce certain goods and service. Few countries have absolute advantage over others to produce goods and services. This is one of the important activity for the development of economy of countries along with import of goods and services.

In the given case, the company which is both new to foreign market activities and also is not yet ready commit to a significant financial investment in the market be likely to pursue Exporting.