Which of the Following Is an Advantage of Franchising as a Mode

question 80

Multiple Choice

Which of the following is an advantage of franchising as a mode of entry into foreign markets?

• A)The franchiser is relieved of many of the costs and risks of opening a foreign market on its own.
• B)The franchiser is allowed to take profits out of one country to support competitive attacks in another.
• C)The franchiser can easily maintain uniform quality across many geographically dispersed franchisees.
• D)Manufacturing concerns can be effectively coordinated across adjacent processes.
• E)The franchiser can support its short-term interests in a country with an unstable economy.

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Definitions:

Friedman and Phelps

Economists known for their work on the natural rate of unemployment and expectations in macroeconomics, challenging the traditional Phillips curve concept.

Phillips Curve

An economic concept that depicts an inverse relationship between the rate of unemployment and the rate of inflation in an economy over time.

Phillips Curve

An economic concept that demonstrates an inverse relationship between the rate of unemployment and the rate of inflation within an economy.

Short-Run Aggregate Supply

The total supply of goods and services that firms in an economy plan on selling during a short period, assuming some prices/wages are sticky.