Which of the following is a common way for a domestic corporation to enter the international market?

• A. Restricting all sales to domestic consumers
• B. Avoiding any form of foreign investment
• C. Only selling products through government agencies
• D. Establishing joint ventures with foreign firms

Answer: (D)

Verified step by step guidance

1. Understand the context: The question asks about common methods for a domestic corporation to enter international markets, which involves expanding business operations beyond the home country.
2. Review each option carefully: Identify which options represent practical strategies for international market entry. For example, restricting sales to domestic consumers or avoiding foreign investment would not facilitate international expansion.
3. Recognize that establishing joint ventures with foreign firms is a common strategy because it allows sharing resources, risks, and local market knowledge, which helps overcome barriers to entry.
4. Recall that joint ventures involve forming a partnership with a foreign company, combining strengths to operate effectively in the international market.
5. Conclude that among the options, establishing joint ventures is the most viable and common method for entering international markets.