For Most Consumer Services Firms, the Mode of Entry into a Foreign

question 48

Multiple Choice

For most consumer services firms, the mode of entry into a foreign market is licensing, franchising, strategic alliances, or direct. This is usually done because

• A) services are highly differentiated.
• B) services produced cannot be added to inventory.
• C) the creation and consumption of services cannot be separated.
• D) the inputs used vary to a great extent.
• E) services usually do not have any intrinsic value that can be converted into a tangible form.

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Definitions:

Guttation

The exudation of drops of water from the pores of plants, usually at the tips or edges of leaves, due to root pressure in a humid environment.

Transpiration

Transpiration is the process by which water vapor is lost from plants to the atmosphere, mainly through the stomata in leaves.

Root Pressure

The pressure in xylem sap that occurs as a result of the active absorption of mineral ions followed by the osmotic uptake of water into roots from the soil.

Dendrochronology

A method of dating that uses the annual rings of trees.