Which of the Following Is Not an Argument in Favour

question 6

Multiple Choice

Which of the following is not an argument in favour of licensing as a means of foreign market entry?

• A) The firm does not have to have capital to open markets overseas
• B) A firm wants to participate in a foreign market, but is prohibited from doing so by barriers to investment
• C) The firm possesses some intangible property that might have business applications and does not want to develop that technology or those applications itself
• D) The firm does not have to bear the development costs and risks associated with opening a foreign market
• E) The firm wants to maintain tight control over the marketing

Understand how political disruptions can threaten foreign investments and the importance of political risk analysis.

Acknowledge the differences in legal and political systems across countries and their impact on business operations.

Recognize the importance of sustainable development in international business practices.

Understand the concept and implications of being a transnational corporation in the global market.

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Definitions:

Inflation-adjusted Wages

Wages that have been modified to reflect the purchasing power after accounting for inflation, often to measure real income changes over time.

Labor Demand Curve

A graphical representation showing the quantity of labor that firms are willing to hire at different wage rates.

Labor Supply Curve

A graph showing the relationship between wages and the quantity of labor workers are willing to offer, usually portraying a positive correlation.

Backward Sloping

Describes a demand curve that defies the usual law of demand, showing less quantity purchased as the price decreases.