If WRSX Decides to Enter New Markets, It Will Need

question 2

Multiple Choice

If WRSX decides to enter new markets, it will need to consider which entry mode to choose. Which TWO of the following statements about entry modes is correct?

• A) A wholly owned subsidiary in a 'greenfield' start up operation would be the lowest risk option.
• B) A joint venture with a local partner would enable the company to tap into the partner's cultural know-how, linkages and reputation.
• C) A wholly owned subsidiary would be suitable in markets where the agency has broad competitive advantages that can easily be transferred to the new markets.
• D) Franchising or licensing of the agency's brand name to a local firm is a high cost/high risk option which should only be used in exceptional circumstances.

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Definitions:

Accommodation

Adjustments or adaptations made to fit or suit conditions, often relating to living arrangements or visual perception.

Generations

Groups of individuals, born and living at about the same time, who experience similar societal events and cultural shifts that can influence their values and behaviors.

Socio-emotional Selectivity Theory

A theory that explains how individuals prioritize their social contacts based on their perceived remaining time in life, focusing more on emotionally satisfying relationships as they age.

Worldview

The comprehensive perspective from which individuals view and interpret the world and their place in it.