Octa Autos Inc

question 1

Multiple Choice

Octa Autos Inc.wants to globally expand its market.It intends to ensure that its mode of foreign entry allows it to have strong control over its operations and protect its intellectual property, though it may mean investing a significant amount of capital and other resources.In this scenario, which of the following foreign entry modes would best suit Octa Autos Inc.?

• A) Exporting
• B) Franchise agreement
• C) Acquisition
• D) Licensing

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Definitions:

Adverse Selection

A situation in economics where the seller possesses more information about the product or service than the buyer, leading to imbalanced and unfavorable transactions.

Affected Individuals

Persons who directly experience the impact or consequences of a specific event or condition, particularly in contexts of disaster, policy, or health.

Concentration of Effect

The degree to which a particular intervention or action yields significant impact within a focused area or group.

Affected by Decision

Entities or individuals who are impacted by the outcomes or consequences of a particular decision-making process.