Which Entry Mode Gives a Multinational the Tightest Control Over

question 23

Multiple Choice

Which entry mode gives a multinational the tightest control over foreign operations?

• A) Exporting from the home country and letting a foreign agent organize local marketing
• B) Licensing
• C) Franchising
• D) Entering into a joint venture with a foreign company to set up overseas operations
• E) Setting up a wholly owned subsidiary

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Definitions:

Fold

A bend in layers of rock or earth's crust caused by stress, resulting in curved or bent strata.

Impermeable Unit

A geological layer or structure that does not allow fluids to pass through it due to its low porosity or permeability.

Salt Dome

A type of geological formation where a column of salt moves upwards through the rock layers above, often creating traps for oil and gas.

Energy Resource

Natural resources or man-made systems utilized to produce energy in the form of electricity or fuel.