Which of the Following Strategies for Competing in the Global

question 3

Multiple Choice

Which of the following strategies for competing in the global markets involves the lowest risk and offers the lowest profit potential?

• A)A joint venture
• B)A foreign subsidiary
• C)Contract manufacturing
• D)Licensing

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Definitions:

Available-for-sale Securities

Financial assets that are bought with the intention of selling before their maturity date, but not classified as held-for-trading or held-to-maturity investments.

Stockholders' Equity

It represents the ownership interest of shareholders in the assets of a company, after deducting liabilities.

Income Statement

A financial statement that shows a company's revenue, expenses, and profits over a specific period of time.

Available-for-sale Securities

Financial assets that are neither held for trading nor intended to be held to maturity, and can be sold in response to needs for liquidity or changes in interest rates.