Which of the Following Best Explains Why Some Service Industry

question 57

Multiple Choice

Which of the following best explains why some service industry firms most likely enter foreign markets through FDI?

• A) The market abroad is saturated; therefore, the other entry strategies are most likely to fail.
• B) The service of the firm requires tough intellectual property laws.
• C) The service offered by the firm requires direct contact with customers.
• D) The firm's service is not successful domestically, so globalization is required.

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Definitions:

Reasonable Expectations

The anticipation of benefits, actions, or conditions based on what an ordinary person would consider fair under specific circumstances.

Inconsistent Warranties

Situations where the guarantees or assurances provided on products or services conflict with each other.

Dominant

Exerting power or influence over others; often used to describe a company or country in a position of authority within its field or region.

Warranty of Title

A guarantee provided by a seller to a buyer that the seller has the right to sell the property and that there are no undisclosed liens, claims, or encumbrances against it.