When a Firm Decides to Build Its Own Manufacturing Plant

question 100

Multiple Choice

When a firm decides to build its own manufacturing plant in a new country, this is known as:

• A) autonomous market entry.
• B) greenfield operation.
• C) contract manufacturing.
• D) direct market entry.
• E) none of the above

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Definitions:

Protective War

A war aimed at providing aid and assistance to innocent civilians who are being victimized by the military of their own nation-state.

Nation-State

A form of political organization under a single government, typically based on the concept of sovereignty within a defined territory.

Most Favored Nation Principle

A principle that states that the World Trade Organization nations must apply the same privileges, advantages, and benefits to all other member nations in relation to similar imports.

World Trade Organization

An international organization designed to supervise and liberalize international trade by facilitating trade negotiations and resolving disputes among its members.