When Toshiba and IBM Shared the $1 Billion of Developing

question 76

Multiple Choice

When Toshiba and IBM shared the $1 billion of developing a memory chip facility to transfer to a new IBM plant in Virginia, which entry mode were the firms using?

• A) Franchising
• B) Licensing
• C) Strategic alliance
• D) Exporting

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Definitions:

Output Quantity

The total amount of a product or service produced by a company or industry.

Rent-seeking

The practice of gaining economic advantage by manipulating the social or political environment in which economic activities occur, instead of by creating new wealth.

Patent Protection

A legal right granted by the government to an inventor, giving them the exclusive right to make, use, or sell their invention for a certain period.

Antitrust Laws

Legislation intended to promote competition and prevent monopolies or unfair practices that restrain trade.