Your Company Is Interested in Producing and Marketing a Line

question 137

Multiple Choice

Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system to entrepreneurs. What type of strategy are you going to use?

• A) Wholly owned foreign affiliate
• B) A greenfield venture agreement
• C) A franchise
• D) An export agreement
• E) Barter trade

---

Definitions:

Inefficiency

The lack of economic efficiency, occurring when resources are not utilized optimally according to certain criteria.

Market Power

The ability of a firm or group of firms to manipulate the price or quantity of a good or service in the market, often through controlling supply or market dominance.

Monopoly Power

The ability of a single seller to control market prices and exclude competitors within a particular market.

Imperfect Competition

A market structure that does not meet all conditions of perfect competition and where individual sellers can influence the price of the market to some degree.