Billions of Investment Dollars Are Needed to Develop Many New

question 14

Multiple Choice

Billions of investment dollars are needed to develop many new products.This trend toward higher development costs is likely to have which of the following effects on future modes of operations?

• A)Collaborative arrangements are likely to decrease because a company making a breakthrough will be leery of partners' appropriation of knowledge.
• B)Collaborative arrangements are likely to increase because of the huge investments needed for development.
• C)Exporting will become more important relative to other operating modes because of the large scale production facilities necessary for economic efficiency.
• D)Cross-licensing will gain in importance because companies will be forced to specialize more in different technologies.

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Definitions:

Increased Demand

A situation where the quantity of a product or service that consumers are willing and able to buy at a given price rises.

European Union

A political and economic union of 27 member states located primarily in Europe, aiming to facilitate free movement of goods, services, and people.

U.S. Products

Goods and services that are produced, manufactured, or assembled within the United States.

Long-term Capital Inflows

The movement of capital into a country over an extended period, often used for investment in major projects or to boost foreign reserves.