Direct Investment in as a Global Market Entry Strategy Refers

question 120

Multiple Choice

Direct investment in as a global market entry strategy refers to

• A) offering the right to a trademark, patent, trade secret, or similarly valued items of intellectual property in return for a royalty or a fee.
• B) contracting with a foreign firm to manufacture products according to certain specifications.
• C) a foreign company and a local firm investing together to create a local business.
• D) having a company handle its own exports directly, without intermediaries.
• E) a domestic firm investing in and owning a foreign subsidiary or division.

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Definitions:

Government Fixes

Interventions or measures taken by government authorities to correct or address economic, social, or environmental issues.

Property Right

The legal rights to possess, use, and dispose of assets, including both physical and intellectual properties.

Cap-and-Trade Program

An environmental policy that limits the total level of certain emissions while allowing industries with low emissions to sell their extra allowances to larger emitters.