A Disadvantage of ________ Is That the Firm That Enters

question 32

Multiple Choice

A disadvantage of ________ is that the firm that enters into such an arrangement will have no long-term interest in the foreign country.

• A) wholly owned subsidiaries
• B) exporting
• C) licensing
• D) turnkey projects

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Definitions:

Finished Goods

Items that are finished being made and can now be purchased by consumers.

Work-in-progress

Refers to the materials and goods that are in the process of being manufactured but are not yet completed.

Raw Materials

The unprocessed or minimally processed materials required to manufacture goods, often natural resources like wood, ores, and oil.

Finished Goods

Products that have completed the manufacturing process and are ready to be sold.