Rashad wants to expand internationally but is very risk-averse. Which market-entry method should he consider given his risk tolerance?

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Exporting fits best for someone who is highly risk-averse because it requires the smallest upfront investment and keeps most operations and exposure at home. By producing domestically and shipping goods to foreign markets, you avoid the large commitments of building facilities abroad, forming local partnerships, or granting ongoing rights. This setup allows you to test international demand with minimal financial risk and to withdraw quickly if results aren’t favorable, aligning well with a cautious approach.

Other options typically involve more risk or complexity. A joint venture means partnering with a local firm, which brings higher financial commitments, potential conflicts, and greater exposure to local market conditions. Licensing or franchising reduce initial investment but introduce ongoing control concerns and dependence on licensees or franchisees, which can affect brand quality and revenue stability.