Derrido Is an American Firm That Has Produced Several Successful

question 169

Multiple Choice

Derrido is an American firm that has produced several successful animated TV series in the United States. It is considering contracting with one or more international companies as a way to market its products overseas. Derrido's marketing director thinks that the company should craft a contractual agreement as an initial entry strategy, because the company might want to choose a more advanced entry strategy later. Which of the following, if true, would strengthen this position?

• A) Foreign partners usually want to enter into contractual agreements with American companies for a long-term period.
• B) A contractual agreement should spell out as many expectations of the foreign partner as possible.
• C) Contractual agreements should be entered into only if the foreign partner is extremely reliable.
• D) Contractual agreements require approval by legal specialists from all countries involved.
• E) Contractual agreements allow a company to provide for open, flexible terms of operation.

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Definitions:

Federal Reserve

The central banking system of the United States, responsible for monetary policy, regulation of financial institutions, and stability of the financial system.

Open-market Purchase

The buying of securities by a central bank from the market to inject liquidity and encourage economic growth.

Aggregate Demand

The complete need for goods and services across an economy at an established price level within a specific period.

Government Spending

The total amount of money spent by the government on various services, infrastructure projects, and welfare programs.