A Domestic Corporation Considering Expanding into International Markets for the First

question 40

Multiple Choice

A domestic corporation considering expanding into international markets for the first time will typically

• A) start off by implementing a wholly owned foreign subsidiary so it can maintain standards identical to those at home.
• B) consider licensing or franchising its operations.
• C) consider implementing a low risk/low control strategy such as exporting.
• D) form a joint venture with a reputable foreign producer.

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Definitions:

Aggregation

The process of combining multiple items or data points into a single group or category for analysis or reporting purposes.

Acculturation

The process of cultural change and psychological adjustment that occurs when individuals from different cultures come into prolonged contact.

Profane Consumption

The use or purchase of products or services in a manner that is considered disrespectful to cultural, religious, or moral norms.

Vulgar Objects

Items that are commonly considered to be lacking in good taste, refinement, or moral decency.