Which Method of Entering a Foreign Market Carries with It

question 110

Multiple Choice

Which method of entering a foreign market carries with it the most risk?

• A)licensing
• B)direct ownership
• C)exporting
• D)joint venture
• E)contract manufacturing

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Definitions:

Mortgage

A loan secured by real estate property, commonly used to purchase a home.

Prepaid Interest

Interest starts accruing (building) at the beginning of each month and continues throughout the month; prepaid interest at the closing is the amount of mortgage interest due to cover the time from the closing date to when the first mortgage payment is due.

Down Payment

The upfront money applied to a purchase that is made using a loan (credit).

Mortgage

A loan specifically used to purchase real estate, where the property itself serves as collateral until the loan is repaid.