In the Context of Modes of International Market Entry, Which

question 25

Multiple Choice

In the context of modes of international market entry, which of the following statements is true of licensing and franchising?

• A)It offers the highest amount of control of all the various modes of entry.
• B)It is easy to extract knowledge for use in other locations through this mode.
• C)It can increase the cost of selling in a foreign market.
• D)It involves the risk of a local firm in alliance to become a competitor.

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Definitions:

Resource Consumption

The amount of resources, such as materials, energy, or time, used in the production of goods or services.

Activity Rates

The charges or costs applied to specific activities or cost drivers in activity-based costing.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific products or projects based on their activity levels.

Overhead Cost

Expenses that are not directly attributed to creating a product or service but are necessary for running the business, such as rent, utilities, and office supplies.