A Company That Makes a Foreign Investment Largely to Acquire

question 75

Multiple Choice

A company that makes a foreign investment largely to acquire knowledge is most likely to use ________ as a means of expansion.

• A)a greenfield investment
• B)internalization
• C)an acquisition
• D)a licensing agreement

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Definitions:

International Boundaries

Geographic demarcations that define the territorial limits between different sovereign states.

Taxes

Compulsory financial charges or some other type of levy imposed on a taxpayer by a governmental organization in order to fund various public expenditures.

Total Logistics Costs

The cumulative expenses associated with the planning, implementing, and controlling of the movement and storage of goods and services from their point of origin to their point of consumption.

Transportation Costs

The expenses associated with the movement of goods or passengers from one location to another.