When an Exporting Firm Finds That Its Local Agent Is

question 74

Multiple Choice

When an exporting firm finds that its local agent is also carrying competitors' products, the firm may switch to a ________ to handle local marketing, sales, and service.

• A) wholly owned subsidiary
• B) franchising arrangement
• C) turnkey operation
• D) licensing agreement

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Definitions:

Cognitive Learning

Learning based upon mental processes, such as thinking, memory, understanding, and reasoning, rather than by emotional or instinctual responses.

Classical Conditioning

The development of understanding through the combination of a naturally present stimulus and one from the environment.

Adaptability

The ability to change or be changed to fit varied circumstances or environments, often essential for survival, growth, and development.

Learning

The act of gaining new insights, learning, abilities, values, or inclinations by means of education, practical exposure, or instruction.