In the Context of Entry Tactics Available for Different Entry

question 51

Multiple Choice

In the context of entry tactics available for different entry modes, which of the following is a difference between the "make" tactic and the "buy" tactic?

• A) Licensing uses the "make" tactic, whereas a turnkey project uses the "buy" tactic.
• B) Joint ventures use the "make" tactic, whereas licensing uses the "buy" tactic.
• C) Unlike with the "make" tactic, with the "buy" tactic, a firm develops its own operations in a new market.
• D) Unlike with the "make" tactic, with the "buy" tactic, a firm can acquire existing franchisee operations to enter a new international market.

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Definitions:

V(X + Y)

The variance of the sum of two random variables, reflecting the spread or variability of their combined distribution.

Probability Distribution

A mathematical description of the likelihood of occurrence of different possible outcomes in an experiment.

Random Variable

A variable whose outcomes are determined by a random phenomenon or process.

Probability Distribution

A mathematical function that provides the probabilities of occurrence of different possible outcomes for an event.