An American Pharmaceutical Enters into an Agreement with an Indian

question 52

Multiple Choice

An American pharmaceutical enters into an agreement with an Indian biotechnology company.The medicines are to be sold in the Indian market.The agreement explicitly states that only the American firm is entitled to maintain the technology and provide know-how regarding technology use and repair.This is an example of:

• A)management contracting.
• B)strategic alliance.
• C)contract manufacturing.
• D)exporting.
• E)direct investment.

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Definitions:

Franchisors

Companies or individuals that grant the license to a third party for the conducting of a business under their brand and name.

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated as the net profit of the investment divided by the cost of the investment.

Company-owned Chain

A series of businesses or retail outlets owned and operated by a singular company, as opposed to being franchises or independently owned.