Types of Entry Modes Available to Companies Include All of These

question 11

Multiple Choice

Types of entry modes available to companies include all of these EXCEPT ________.

• A) exporting, importing and countertrade
• B) contractual entry
• C) investment entry
• D) value entry

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Definitions:

Economies of Scale

The cost advantage companies achieve due to an increase in production, leading to a reduction in the per-unit cost.

Diseconomies of Scale

A condition in which an increase in production leads to higher long-term average costs, contrary to economies of scale.

Licensing

The process through which a company grants permission to another entity to use its intellectual property, technology, or product specifications under agreed terms.

Government Permission

The requirement of obtaining approval or authorization from governmental bodies before engaging in certain activities, businesses, or projects.