Nike _________________ Its Products in Foreign Countries, Where Labor Is

question 352

Multiple Choice

Nike _________________ its products in foreign countries, where labor is cheap and production sites are owned by other companies. This strategy allows Nike to experiment in new markets without incurring large start-up costs involved with building their own production facilities.

• A) contract franchises
• B) pays governments to market
• C) globally licenses
• D) contract manufactures

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Definitions:

Regressive Taxation

A tax system where the tax rate decreases as the amount subject to taxation increases, meaning lower-income individuals bear a proportionally higher tax burden.

Taxes

Mandatory contributions levied on individuals or corporations by a government to fund public expenditures.

Keynesian Economics

An economic theory stating that government intervention can stabilize the economy through monetary and fiscal policies, especially during recessions.

Fiscal Policy

Government policies concerning taxation and spending to influence the economy, aiming at managing economic growth and stabilizing prices and employment.