Mega Computers Has Decided to Expand Operations Overseas

question 44

Multiple Choice

Mega Computers has decided to expand operations overseas. In order to give foreign customers a sense of security, Mega has chosen to send several of its own managers and technicians to the country as part of the start-up operations. In addition, this will give Mega more control over making sure that top quality service is given to the new customers. Mega has chosen the organizational strategy known as a(n)

• A) independent agent.
• B) strategic alliance.
• C) direct investment.
• D) branch office.
• E) licensing arrangement.

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Definitions:

Command Systems

Economic systems where the government or a central authority makes all decisions regarding the production and distribution of goods and services.

Market System

An economic framework in which choices about investment, production, and the distribution of goods and services are influenced by supply and demand dynamics, with their prices established through a system of free pricing.

Shielded From Risk

Describes a condition or strategy in which an individual or entity is protected or insulated against potential losses or adverse outcomes.

Consumer Sovereignty

The principle that consumers' preferences and choices dictate the production of goods and services in a market.