As an Internationalization Strategy, the Typical Use of Maquiladoras by U.S

question 48

Multiple Choice

As an internationalization strategy, the typical use of maquiladoras by U.S. firms is a form of _____.

• A) strategic alliance
• B) licensing agreement
• C) direct investment
• D) joint venture
• E) franchising

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Definitions:

Consumption Spending

The total amount of money that households spend on goods and services within a certain period.

Disposable Income

Income available to households for saving and expenditure post-income tax deductions.

Consumption

The action or process of using goods and services for personal, household, or organizational needs.

Marginal Propensity

The proportion of an additional unit of income that is used for consumption; more specifically referred to as the marginal propensity to consume.