Which Entry Mode Gives a Multinational Company the Tightest Control

question 10

Multiple Choice

Which entry mode gives a multinational company the tightest control over foreign operations?

• A) Exporting from the home country and letting a foreign agent organize local marketing
• B) Licensing
• C) Franchising
• D) Entering into a joint venture with a foreign company to set up overseas operations
• E) Setting up a wholly owned subsidiary

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Definitions:

Employee Morale

The overall satisfaction, outlook, and feelings of well-being that an employee experiences at their workplace.

By-products

Secondary products that are produced incidentally in the process of manufacturing the main product, often with economic value and varying applications.

Net Realisable Value

The estimated selling price of goods, minus the costs of their sale or disposal.

Joint Costs

Costs incurred up to the split-off point in the process of producing joint products, which are not identifiable to individual products.