The Least Risky Method by Which Firms Conduct International Business

question 50

Multiple Choice

The least risky method by which firms conduct international business is:

• A) Franchising.
• B) The acquisitions of existing operations.
• C) International Trade.
• D) The establishment of new subsidiaries.
• E) Licensing

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Definitions:

Monetary Policy

The process by which a central bank or monetary authority manages the money supply and interest rates to achieve economic objectives.

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, that borrowers pay to lenders over a specified period.

Money Supply

The sum of all financial resources in the form of cash and deposits in banks present within an economy at a given moment.

Federal Reserve Board

A central body of the Federal Reserve System, overseeing the nation's monetary policy and regulating banks.