An MNC Uses Which International Strategy for Entering a Foreign

question 98

Multiple Choice

An MNC uses which international strategy for entering a foreign market by associating itself with a firm in the host country or a government agency in that country to combine resources and expertise needed for the development of a new product or technologies?

• A) licensing
• B) joint ventures
• C) production sharing
• D) exporting
• E) acquisitions

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Definitions:

Accounting Equation

The fundamental formula in accounting that states assets equal liabilities plus shareholders' equity, representing a company's financial position.

Owner's Equity

The total value that would accrue to a business's owners after all liabilities are subtracted from all assets; also known as shareholder's equity or net worth.

Liabilities

Economic debts or obligations a company is responsible for, which are to be paid off over time through the exchange of economic advantages.

Owner's Withdrawal

Amounts of cash or other assets that the owner takes from the company for personal use.