If a Business Wants to Have a Bigger Presence in International

question 117

Multiple Choice

If a business wants to have a bigger presence in international markets, which of the following production options should it consider?

• A) a franchise agreement
• B) a joint venture
• C) licensing agreement
• D) a joint venture or a licensing agreement
• E) a franchise agreement or a joint venture or a licensing agreement

---

Definitions:

Competitive Supply

The total quantity of a good or service that is available to consumers, determined by the sum of all individual suppliers’ quantities at each price level in a competitive market.

Elasticity of Supply

An evaluation of the extent to which the amount of a good provided alters as a result of variations in its price.

Equilibrium Price

The price at which the quantity of goods supplied equals the quantity of goods demanded.

Linear Supply

A supply relationship showing a direct, constant increase in quantity supplied as price increases.