Which of the Following Is True About Cross-Border Contractual Relationship

question 28

Multiple Choice

Which of the following is true about cross-border contractual relationship?

• A) It is a more visible strategy than FDI and draws a lot of criticism from the local market.
• B) They are more susceptible to volatility and risk compared to FDI.
• C) A local firm allows the focal firm to blend into the local market, attracting less attention.
• D) Focal firms use contractual relationships as an advanced entry strategy in foreign markets.

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Definitions:

Exclusive Federal Power

Refers to powers reserved solely for the federal government by the constitution, prohibiting states from intervening.

Police Power

The capacity of the states to regulate behavior and enforce order within their territory for the betterment of the health, safety, morals, and general welfare of their inhabitants.

Copyrights

Legal protections granted to creators of original works of authorship, allowing them the exclusive right to use, reproduce, and distribute their work.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts.