The Minireplica Subsidiary

question 46

Multiple Choice

The minireplica subsidiary

• A)Copies the structure and strategy of companies located in the same country.
• B)Mostly copies the structure and strategy of the parent company.
• C)Replicates only minor parts of the parent's production technology.
• D)Copies the structure of small foreign firms.

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Definitions:

Vertical Contracts

Agreements between firms at different levels of the supply chain, such as between a manufacturer and a retailer, aimed at controlling or coordinating activities.

Costly Activities

tasks or operations that require a high expenditure of resources, such as time, money, or labor.

New Product

A good, service, or idea that has not previously been brought to the market by its seller.

Tying

A sales practice where a seller requires the purchase of a second product or service together with the first.