Match the Term with Its Definition

question 28

Multiple Choice

Match the term with its definition.
-A strategy to sell a standard package of products, systems, and management services to a company in another country

• A)economic risk
• B)experience curve efficiencies
• C)foreign licensing
• D)international franchising
• E)international outsourcing
• F)international strategic alliance
• G)learning effects
• H)licensee
• I)licensor

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Definitions:

Lowest Betas

In finance, refers to the stocks or portfolios with the lowest measures of volatility or market risk in comparison to the market as a whole.

Principle of Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to reduce exposure to any single asset's volatility.

Positively Correlated Stocks

Stocks whose prices tend to move in the same direction due to similar underlying factors or market conditions.

Volatility

A statistical measure of the dispersion of returns for a given security or market index, often associated with the degree of risk or uncertainty.