Which of the Following Is an Advantage of Management Contracting

question 5

Multiple Choice

Which of the following is an advantage of management contracting?

• A) It involves the least change in a company's product lines.
• B) It allows a contracting firm to set up its own operations at the beginning of the contract.
• C) It is the simplest way to enter a foreign market.
• D) It yields income from the beginning of the contract.
• E) It gives a contracting firm an option to buy shares in the managed company immediately.

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Definitions:

Trading Bloc Agreements

These are agreements between groups of countries, often geographically proximate, to promote trade among themselves by reducing trade barriers like tariffs and import quotas.

Trade Restrictions

Measures implemented by governments to control the import and export of goods and services, often to protect domestic industries and jobs.

Export Subsidy

A government policy to encourage export of goods and services through direct payments, tax relief, or other financial incentives.

Net Welfare

The overall well-being of individuals or society, accounting for all benefits and costs, including those that are not traded in markets.