Consider This Position: If You Run a Pharmaceutical Company with a Good

question 56

Multiple Choice

Consider this position: If you run a pharmaceutical company with a good product to distribute in Japan but have no sales force to do it, find someone in Japan who also has a good product but no sales force in your country. Why not join forces to maximize contribution to each other's fixed costs? This describes the logic of:

• A)a joint venture.
• B)exporting.
• C)franchising.
• D)importing.
• E)global marketing.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between multiple options.

Voluntary Exchange

is a transaction where parties trade goods or services by mutual agreement, each benefiting from the exchange.

Private Property Rights

The legal rights to possess, use, and dispose of assets such as land, buildings, or personal items, protected under the law.

Comparative Advantage

The ability of a country or individual to produce a good or service at a lower opportunity cost than another.