Which of the Following Statements About Operating a U

question 289

Multiple Choice

Which of the following statements about operating a U.S.-based franchise in a foreign country is most accurate?

• A) U.S.-based franchises are most likely to succeed in a foreign market if they use the same strategies and procedures used by franchises in the United States.
• B) There are limited opportunities for U.S.-based franchises to open in foreign countries because, aside from Canada, Mexico, and a small number of European countries, most foreign nations do not allow American-owned franchises to operate within their borders.
• C) The operating costs for franchises in foreign countries may be fairly high, but chances for success are quite good, because competition is likely to be less intense and the customer base in many foreign countries is expanding.
• D) It is difficult for U.S.-based franchises to succeed in most foreign countries because the low incomes of most households in these countries result in weak demand.

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Definitions:

Media Richness

The degree to which a communication medium is capable of reproducing the information sent over it without loss or distortion.

Rich Medium

A communication tool that is capable of conveying complex information effectively, often through multiple channels like text, audio, and video.

Lean Medium

A communication channel characterized by its efficiency and focus, minimizing waste and prioritizing clear, concise messages.

Overall Subject

The broad topic or theme that encompasses the main idea or focus of a discussion, document, or presentation.