If a Foreign Country Follows the "Purchase Homemade Products" Philosophy,the

question 36

Multiple Choice

If a foreign country follows the "Purchase Homemade Products" philosophy,the least effective strategy would be for a U.S.firm to:

• A) use a licensing arrangement with a local firm in that country.
• B) enter into a joint venture in that country.
• C) develop a subsidiary (under the U.S. name) that manufac tures and sells products in that country.
• D) develop a subsidiary (under the U.S. name) that manufac tures products in that country and exports them to border countries.

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Definitions:

Sherman Act

A landmark federal statute in the field of United States antitrust law passed by Congress in 1890 to preserve competitive market conditions by prohibiting monopolies, cartels, and trusts.

Vertical Mergers

The combination of two or more companies that operate at different stages of production in the same industry, such as a manufacturer merging with a supplier.

Industrial Age

A period of history marked by major industrialization that transformed economies from being primarily based on agriculture and handicrafts to being based on manufacturing and machinery.

Conglomerate Mergers

The combination of companies operating in unrelated industries into a single corporate structure.