For Most Consumer Services Firms, the Mode of Entry into a Foreign

question 48

Multiple Choice

For most consumer services firms, the mode of entry into a foreign market is licensing, franchising, strategic alliances, or direct. This is usually done because

• A) services are highly differentiated.
• B) services produced cannot be added to inventory.
• C) the creation and consumption of services cannot be separated.
• D) the inputs used vary to a great extent.
• E) services usually do not have any intrinsic value that can be converted into a tangible form.

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Definitions:

Real Assets

Physical or tangible assets that have value due to their substance and properties, such as land, buildings, and machinery.

Commercial Banks

Financial institutions that offer a wide range of banking services to individuals and businesses, including deposit accounts, loans, and other services.

Efficient Market

A market in which asset prices fully reflect all available information, making it impossible to consistently achieve higher returns.

Investment Strategy

A plan for allocating assets among various investment types to achieve specific financial goals, taking into account the investor's risk tolerance and time horizon.