When Host Governments Do Not Require Alliances as a Condition

question 23

Multiple Choice

When host governments do not require alliances as a condition for entry,many multinational companies:

• A) are advised not to voluntarily pursue alliances, as they tend to be problematic.
• B) are usually indifferent about establishing alliances.
• C) find that having an alliance is advantageous to their entry and expansion.
• D) are likely to consider alliances, except in emerging markets and highly regulated industries.

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Definitions:

Annual Payments

Annual payments refer to the total amount of money paid or to be paid each year, which might include rent, interest, or salaries.

Interest Rate

The percentage of a loan amount charged for borrowing money, expressing the cost of debt.

Present Value

Today’s value of a prospective amount of money or cash flow series, determined by a predefined rate of return.

Payment Options

Various methods available for consumers to make transactions, such as cash, credit cards, and electronic transfers.