If a Company Lacks the Capital to Develop Operations Overseas

question 44

Multiple Choice

If a company lacks the capital to develop operations overseas and/or they are unwilling to commit resources to an unfamiliar or politically volatile foreign market, which of the following entry options is the most viable?

• A) International licensing
• B) Setting up a wholly owned subsidiary
• C) Joint venture
• D) Franchising
• E) Global standardization

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Definitions:

Negative Punishment

A behavioral strategy involving the removal of a desirable stimulus following an undesirable behavior to decrease the likelihood of the behavior's recurrence.

Positive Punishment

A behavior modification technique that involves the addition of an unpleasant stimulus to decrease the likelihood of a behavior reoccurring.

Negative Reinforcement

A process in behavior modification by which the likelihood of a behavioral response increases by the removal of an unpleasant stimulus.

Positive Reinforcement

A process in psychology which increases the likelihood of a behavior by following it with a desirable outcome or reward.