_______Is a Method of Investment in Which a Company Builds

question 56

Multiple Choice

_______is a method of investment in which a company builds a new business or buys an existing business in a foreign country.

• A) A strategic alliance
• B) Direct foreign investment
• C) A global new venture
• D) A joint venture
• E) Direct exporting

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Definitions:

Merchandise Purchases

The procurement of goods for resale, typically in a retail or wholesale environment, not involving the manufacturing process.

Merchandise Inventory

The goods a company holds for the purpose of sale to customers.

Cost of Goods Sold

The total cost associated with making or buying the products that a company has sold during a period.

Indirect Manufacturing Cost

Costs in the production process that cannot be directly traced to specific units of product, such as maintenance and facility costs.