If an MNC and a Local Firm Form a Joint

question 5

Multiple Choice

If an MNC and a local firm form a joint venture,and the MNC has the right to sell its interest in the joint venture to the local partner,the MNC is said to have a:

• A)exit strategy.
• B)call option.
• C)investment opportunity.
• D)put option.

---

Definitions:

Standard Deviation

A statistic that measures the dispersion or variation of a set of values from their mean.

Average

A statistical measure representing the central or typical value in a set of data, calculated by dividing the sum of all values by the number of values.

Bayesian Statistics

A statistical method that applies probability to statistical problems, involving prior knowledge as well as current evidence.

Prior Knowledge

Refers to the information and understanding a person already has before learning new information.