Final answer:
The correct order from lowest to highest investment risk for international expansion is licensing, exporting, joint ventures, and wholly-owned subsidiaries.
Step-by-step explanation:
The question involves identifying the methods of international expansion in order from lowest to highest risk. To begin with, exporting is the lowest risk because a company simply sells its products in another country without major investment in that country. Next is licensing, where a company allows a firm in another country to use its intellectual property, which involves somewhat greater risk but not heavy investment. Joint ventures come next, where two firms share the costs, risks, responsibilities, and profits of a business. Finally, the highest risk is through wholly-owned subsidiaries, where one company fully owns and controls the business in the foreign market, representing a significant long-term investment and exposure. Therefore, the correct sequence from lowest to highest risk is option b) Licensing, exporting, joint ventures, wholly-owned subsidiaries.