A Major Disadvantage of Operating a Wholly Owned Subsidiary Is

question 28

Multiple Choice

A major disadvantage of operating a wholly owned subsidiary is that

• A)a loss of control over technology is likely to occur.
• B)a wholly owned subsidiary offers too much flexibility over operations.
• C)high costs and risk are associated with this type of operation.
• D)overseas consumers are often resentful of foreigners.
• E)host countries can impose higher tariffs on the firm.

Understand the concept of buy classes and their implications on organizational buying behavior.

Recognize different types of purchasing situations, including new buys, straight rebuys, and modified rebuys.

Comprehend the dynamics and benefits of reverse auctions in organizational buying.

Identify the various types of auctions and their characteristics.

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Definitions:

Free Trade

An economic policy that allows imports and exports to flow freely between countries without tariffs, quotas, or restrictions.

Sailors' Rights

A slogan and movement advocating for the protection and legal rights of sailors, especially relevant during the early 19th century in opposition to impressment by the British Navy.

War of 1812

A military conflict fought between the United States and the British Empire (and their respective allies) from 1812 to 1815, largely over issues of trade and maritime rights.

Republican Government

A form of government in which power resides in elected individuals representing the citizen body and government leaders exercise power according to the rule of law.