Which of the Following Are Strategy Options for Entering Foreign

question 59

Multiple Choice

Which of the following are strategy options for entering foreign markets?

• A) maintaining a national (one-country) production base and exporting goods to foreign markets
• B) establishing a subsidiary in a foreign market
• C) franchising and licensing strategies
• D) forming strategic alliances or joint ventures with foreign partners
• E) all of these choices are correct.

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Definitions:

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing between options.

Capital

Economic resources that are used to create goods and services, such as buildings, machinery, and equipment.

Accounting Profit

Total revenue minus total explicit cost

Economic Profit

The distinction in the amount between total sales and all costs, inclusive of apparent and implied expenses.