_____ Is a Global Marketing Strategy That Requires Active Ownership

question 136

Multiple Choice

_____ is a global marketing strategy that requires active ownership (either a controlling interest or large minority interest) of a foreign company or overseas manufacturing or marketing facilities.

• A) Market grouping
• B) Import brokering
• C) Export subsidizing
• D) Licensing
• E) Direct foreign investment

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Definitions:

Equity Method

An accounting technique used by a company to record its investment in another company when it has significant influence over that company but does not fully control it.

Investee's Net Income

The total profit of a company in which another company has an investment interest, after all expenses and taxes have been subtracted.

Original Cost

The initial amount of money spent to acquire an asset, including purchase price and all expenses incurred to bring it to its intended use.

Unrealized Gain

A profit that exists on paper as a result of an investment increasing in value but has not yet been sold for cash.