Derrido Is an American Firm That Has Produced Several Successful

question 57

Multiple Choice

Derrido is an American firm that has produced several successful animated TV series in the United States.It is considering contracting with one or more international companies to market its products overseas. Derrido's marketing director thinks that the company should craft a contractual agreement as an initial entry strategy,because the company might want to choose a more advanced entry strategy later.Which of the following,if true,would strengthen this position?

• A)Foreign partners usually want to enter into contractual agreements with American companies for a long-term period.
• B)A contractual agreement should spell out as many expectations of the foreign partner as possible.
• C)Contractual agreements should be entered into only if the foreign partner is extremely reliable.
• D)Contractual agreements require approval by legal specialists from all countries involved.
• E)Contractual agreements allow a company to provide for open,flexible terms of operation.

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Definitions:

Adverse Selection

A situation where sellers have information that buyers do not, leading to a market dominated by lower-quality goods.

Reckless Drivers

Individuals who operate vehicles in a dangerous manner, disregarding traffic rules and the safety of others.

Safety Devices

Devices or mechanisms designed to prevent accidents or injuries, often found in vehicles, machinery, and at workplaces.

Low Risk

Situations or investments that have a minimal chance of loss or failure.