Your Company Is Interested in Producing and Marketing a Line

question 8

Multiple Choice

Your company is interested in producing and marketing a line of coffee that will penetrate the Chinese market. Your firm is willing to supply the equipment, products, product ingredients, trademark, and standardized operating system. What type of strategy are you going to use?

• A) Wholly owned foreign affiliate
• B) A greenfield venture agreement
• C) A franchise
• D) An export agreement
• E) Barter trade

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Definitions:

Fixed Input

A resource or factor of production whose quantity does not change with the level of output in the short run.

MRC

Marginal Resource Cost, the cost of utilizing one additional unit of a resource or factor of production.

MRP

Marginal Revenue Product; the additional revenue generated from employing one more unit of a resource, commonly applied in economics.

Marginal Product

The additional output resulting from the use of one more unit of a production input, holding other inputs constant.