An MNC Uses Which International Strategy for Entering a Foreign

question 51

Multiple Choice

An MNC uses which international strategy for entering a foreign market by simply shipping goods produced in the company's home country to other countries for marketing to minimize risk and to experiment with a specific product?

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

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Definitions:

Domestic Production

The manufacture of goods within a country’s borders as opposed to importing goods from other countries.

Domestic Price

The price of goods or services within a country's borders, differing from global or international prices due to factors like tariffs, taxes, and demand-supply dynamics in the local market.

Free Trade

An economic policy that allows imports and exports between countries with minimal or no barriers to trade.

Domestic Consumption

The total demand for goods and services within a country, excluding those goods and services that are exported.