The International Joint Venture or Minority Ownership Arrangement for Advertising

question 9

Multiple Choice

The international joint venture or minority ownership arrangement for advertising agencies begun in the 1970s by U.S. agencies eliminated the:

• A)long start-up time needed to begin a new agency.
• B)need for advertising plans that reflected only local business practices.
• C)recognition of the growing expertise of local advertising talent.
• D)need to provide client services at least on par with major American agencies.
• E)need to bring much of the marketing communication function in-house.

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Definitions:

Nominal GDP

The aggregate value of all end products and services created inside a country during a specific time, calculated in present-day prices.

Nominal Cost

The price of a good or service without adjustment for inflation, representing the current market price.

Potential Output

Potential output refers to the total amount of goods and services an economy can produce when it is operating at full capacity and efficiency, without causing inflation.

Long-run Equilibrium

A state in which all inputs and outputs in an economy are fully adjusted and there is no tendency for change.