When Nestlé Actually Owns a Subsidiary or Division in a Foreign

question 42

Multiple Choice

When Nestlé actually owns a subsidiary or division in a foreign country,such as its own ice cream manufacturing operation in China,this global market entry strategy is known as ________ and represents the greatest commitment a company can make to international sales.

• A)licensing
• B)local assembly
• C)a joint venture
• D)direct investment
• E)local manufacturing

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Definitions:

Nonconformity

A situation where goods or services do not meet the standards or specifications agreed upon in a contract.

Accepted Goods

Products or items that have been received and acknowledged as meeting the quality and quantity specifications of the purchase contract.

Reject

To decline to agree to, comply with, acknowledge, or employ something.

Installment Delivery

A method of delivering goods where the total quantity is provided in several segments over a period, usually according to a schedule.