When a Firm Adopts an Internalisation Approach to International Trade

question 36

Multiple Choice

When a firm adopts an internalisation approach to international trade, it is attempting to gain advantage by:

• A) making use of joint venture partners in the overseas market.
• B) replicating its domestic operation in the overseas market.
• C) buying only from its domestic suppliers.
• D) employing an export merchant in the home country.
• E) making use of agents in the overseas market.

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Definitions:

Sound Waves

Vibrations that travel through air or another medium and can be heard when they reach a person's or animal's ear, fundamental to the perception of sound.

Frequency

The number of occurrences of a repeating event per unit of time, often measured in cycles per second or Hertz.

Cochlea

A spiral-shaped, fluid-filled inner ear structure responsible for converting sound waves into nerve impulses that are interpreted by the brain as sound.

Eardrum

A thin membrane that separates the outer ear from the middle ear, vibrating in response to sound waves and initiating the process of hearing.