Which of the Following Is Characteristic of Cross-Border Contractual Relationships

question 70

Multiple Choice

Which of the following is characteristic of cross-border contractual relationships?

• A) When compared to FDI, they are less susceptible to volatility and risk, and tend to bring both parties a predictable stream of revenue.
• B) The focal firm attains maximum control by establishing a physical presence, and ownership of key assets, in the foreign market.
• C) It attracts high attention and criticism for the focal firm because of the local perception of foreign entities.
• D) They are governed by a contract that provides the focal firm with no control over the foreign partner.

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