___________ Is the Most Common Method for Entering Foreign Markets

question 73

Multiple Choice

___________ is the most common method for entering foreign markets and accounts for ________ of all global economic activity.

• A)Direct foreign investment, 20 percent
• B)Licensing, 12 percent
• C)Franchising, 35 percent
• D)Exporting, 10 percent
• E)Joint ventures, 15 percent

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Definitions:

Salvage Value

The estimated residual value of an asset at the end of its useful life, which is considered when calculating depreciation.

Useful Life

The estimated duration over which an asset is expected to be usable and productive.

Incremental Analysis

Incremental analysis is a decision-making technique used in finance and accounting to determine the cost and benefits of a specific change in operations or business activity.

Direct Materials

Raw materials that can be directly traced to the production of a specific good or service, considered a variable cost in manufacturing.