PepsiCo Entered into a Long-Term Contract with a South African

question 38

Multiple Choice

PepsiCo entered into a long-term contract with a South African beverage company. The contract calls for the South African firm to produce and market Pepsi products in the country. PepsiCo will receive royalties on each case of sodas sold. This is an example of

• A) licensing.
• B) a joint venture.
• C) a foreign subsidiary.
• D) foreign direct investment.

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Definitions:

Suzanne Kobasa

A psychologist known for her research on stress, specifically the concept of stress resilience and the "hardiness" personality trait.

Commitment

The state or quality of being dedicated to a cause, activity, or goal, often involving a promise or firm decision to do something.

Challenge

Any task or situation that tests someone's abilities in a way that is stimulating, demanding, or requires an effort to overcome.

Control

The psychological process or mechanism that regulates an individual's ability to direct their thoughts, emotions, and behaviors towards achieving goals or responding to environmental demands.