In the Context of a Company Entering a Foreign Market

question 60

Multiple Choice

In the context of a company entering a foreign market, identify a difference between licensing and wholly owned subsidiaries.

• A) Licensing is an equity mode of entering a foreign market, whereas wholly owned subsidiaries refer to a nonequity mode of entering a foreign market.
• B) Licensing possesses high risk, whereas wholly owned subsidiaries are subjected to low risk.
• C) Licensing protects intellectual property, whereas wholly owned subsidiaries are prone to losing their intellectual property.
• D) Licensing creates distance from customers, whereas wholly owned subsidiaries provide direct exposure to local customers.

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Definitions:

Vitamin C

An essential nutrient and antioxidant found in fruits and vegetables, necessary for the growth, development, and repair of all body tissues.

Aspirin

A drug administered to alleviate pain, fever, inflammation, and in smaller doses, to inhibit blood clot formation.

Hispanic-American

A person residing in the United States of America who is of Hispanic or Latino origin.

Food Preferences

The individual choices or desires that influence the selection of food based on taste, health, convenience, or cultural reasons.