Which of the Following Is True About Joint Venturing

question 2

Multiple Choice

Which of the following is true about joint venturing?

• A) Contract manufacturing gives significant control to the domestic firm.
• B) Companies are required to invest in the construction of foreign-based facilities.
• C) Licensing is a highly complex method for entering global markets.
• D) A host country partner is necessary for selling or marketing products.
• E) Management contracting is highly risky for the domestic firm.

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Definitions:

Resource Unemployment

Refers to the state where economic resources are not being used to their full potential, contributing to less-than-optimal output or employment.

Potential Output

The highest level of economic output that can be achieved sustainably without causing inflation.

Long Run

A period in which all inputs can be adjusted by firms, and all market adjustments have been made.

Nominal Wages

The amount of money received by an employee before any deductions and not adjusted for inflation; the face value of wages.