Which of the Following Modes of Serving Foreign Markets Requires

question 5

Multiple Choice

Which of the following modes of serving foreign markets requires the least capital investment by the MNE but risks the loss of key technological or managerial expertise to the marketplace?

• A) acquisition
• B) licensing
• C) Greenfield investment
• D) portfolio investment

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Definitions:

Operating Expenses

Regular expenses associated with the operation of a business, such as rent, utilities, and payroll, not directly tied to production.

Cost of Sales

The immediate expenses related to the manufacturing of products sold by a business, encompassing costs for materials and labor.

Cash Receipts

Money received by a business during a particular period, including revenues from sales and other transactions.

Cash Disbursements

Outflows of cash, typically categorized for financial reporting and analysis of a company’s cash outflow activities.