Final answer:
Among the options provided, licensing typically involves the lowest level of ownership and managerial responsibilities in a foreign business, making it the correct answer for FDI operations with the least ownership. The correct option is D.
Step-by-step explanation:
When considering the Foreign Direct Investment (FDI) operations and levels of ownership, it's important to understand the distinct types of international business strategies. In the context given, franchising and licensing are closer to the concept of FDI than contracting or exporting because they involve some level of control and managerial input in a business in a foreign country. However, when compared to other options provided, licensing often represents the lowest level of ownership and managerial responsibilities, thus offering a lower level of control than FDI does.
Typically, FDI refers to purchasing at least ten percent of a firm in another country or starting up a new enterprise, indicative of a significant commitment and influence in the management of the foreign business.
By contrast, with licensing, a company gives another company the rights to produce a product, use a brand name or proprietary knowledge in exchange for royalties, which usually does not include a transfer of ownership or long-term capital investment characteristic of FDI. Hence, among the options listed, licensing would be the correct answer as it represents the least amount of ownership and control and is not a form of direct investment but rather a business agreement.