In This Type of International Structure, the Firm Locates a Partner

question 124

Multiple Choice

In this type of international structure, the firm locates a partner who shares in the risk and in the profits.

• A) Branch office
• B) Strategic alliance
• C) Foreign direct investment
• D) Licensing agreement
• E) Independent agent

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Definitions:

Electronegativity Difference

The measure of the tendency of an atom to attract a bonding pair of electrons towards itself, used to predict the nature of chemical bonds.

Polar Covalent

A type of chemical bond where two atoms share a pair of electrons but they do so unequally, leading to a partial positive charge on one atom and a partial negative charge on the other.

Nonpolar Molecules

Molecules that do not have distinct electrical poles, resulting in a uniform distribution of electrical charge and often being hydrophobic or insoluble in water.

Nonpolar Bonds

Chemical bonds where electrons are equally shared between two atoms, resulting in no significant charge distribution across the molecule.