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Attempts Average 3 3. Forms for Global Business A domestic company that wants to expand globally can choose to organize based on the levels of investment and risk it is willing to take in a specific market. According to the phase model of globalization, a company can increase its global inficence by taking higher levels of Investment and risk associated with bligher levels of foreign markat opportunities. The phases involved are exporting, cooperative contracts, strategic alliances, and wholly owned affiliates. A company can also skip the phases altogether and start is a global new venture designed to operate in multiple International markets by strategically planning its business. Exporting Cooperative Contracte Strategic Alliances wholly owned Artist The highest level of investment and risk in which a company can particoate according to the phase model of globalization is bullding or buying a wholly owned affiliate, which is a division of a business in a foreign market. Wholly owned affiliates can be built in a foreign market or bought from local businesses that holds competitive advantage that the company wants to acquire in specific market. The advantages of wholly owned affiliates are the control over the business model and operations and the ability to grow through consistent brand. The disadvantages include the expense of establishing or buying a business in a foreign market and the Inherent chok of fallure I the local market does not adopt the company's product or service Select the best response to the following questions, A is created when a company pays a fee for the right to operate a specific business in a foreign market, cooperative contract joint venture wholly owned subsidiary strategic alliance Select the best response to the following questions. Which type of arrangement is created when a company sells its product line to another firm that agrees to maintain its high levels of quality? Exporting Joint venture Licensing O wholly owned subsidiary Select the best response to the following questions, A Is created when a company builds its own facility in a foreign market. V wholly owned subsidiary joint venture strategic alliance O franchise