An MNC Uses Which International Strategy for Entering a Foreign

question 103

Multiple Choice

An MNC uses which international strategy for entering a foreign market by simply shipping goods produced in the company's home country to other countries for marketing to minimize risk and to experiment with a specific product?

• A)licensing
• B)joint ventures
• C)production sharing
• D)exporting
• E)acquisitions

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Definitions:

Perfectly Elastic

Describes a situation in economics where the quantity demanded or supplied can change infinitely with any change in price.

Upward-Sloping

A scenario where higher levels of a certain variable lead to higher levels of another variable, typically seen in supply curves where higher prices lead to higher quantities supplied.

Tax Incidence

The analysis of the effect of a particular tax on the distribution of economic welfare, focusing on who ultimately bears the burden of the tax.

Externality Analysis

The study of costs or benefits that affect parties who did not choose to incur that cost or benefit, typically used in the context of environmental and public policy.