Fredora Design House Wants to Enter the Foreign Market

question 19

Multiple Choice

Fredora Design House wants to enter the foreign market. However, as its designs are its intellectual property, it does not wish to risk its authority to have complete control over the sales and marketing of its products in a foreign nation. Which of the following forms of entering a foreign market should Fredora choose in this scenario such that there is a reduced risk of valuable information being leaked to competitors, thereby enabling a business partner from becoming a future competitor?

• A) Turnkey operation
• B) Franchising
• C) Joint venture
• D) Wholly owned subsidiary

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Definitions:

Neo-Evolutionary Theory

A theoretical perspective that attempts to explain the process of social evolution in societies through mechanisms such as adaptation, selection, and variation, building upon earlier evolutionary theories.

Theory of Competition

An economic theory that describes how individuals and firms compete within a market to maximize their benefits, usually through price, quality, and innovation.

Cyclical Theory

A theory suggesting that events or phenomena occur in predictable cycles, often applied to economics and history.

Conflict Theory

A sociological perspective that views social life as a competition for scarce resources, emphasizing the role of power and inequality in causing social conflict and change.