Review the Following Statements to Determine Which One Is Not

question 65

Multiple Choice

Review the following statements to determine which one is not accurate regarding the direct ownership method of entering a foreign market.

• A)Direct ownership requires more commitment than any other method of entering a foreign market.
• B)Direct ownership does not allow the firm much control over its intellectual property.
• C)Direct ownership is a good option when there is very little political risk.
• D)Direct ownership is a good option when there are similarities between the foreign and domestic cultures.
• E)Direct ownership is the riskiest method of entering a foreign market.

---

Definitions:

Wage Rates

The standard amount of pay given for work performed, typically expressed as an hourly rate or salary.

Productivity of Labor

A measure of economic performance that calculates the output of goods and services per unit of labor input.

Technology

The application of scientific knowledge for practical purposes, especially in industry and in the creation of innovations and inventions.

Real Wages

Wages adjusted for inflation, representing the true purchasing power of income.