ConnectSys Is a California-Based Manufacturer of Computer Networking Equipment for Home

question 24

Multiple Choice

ConnectSys is a California-based manufacturer of computer networking equipment for home and small business users. When people call the company's toll-free customer support telephone number, they are connected to a customer service representative in India. ConnectSys uses this arrangement because the wages for customer service representatives are lower in India than in the United States. This is an example of:

• A) A virtual corporation.
• B) Exporting telecommunications.
• C) An indirect distribution channel.
• D) A task transfer service.
• E) None of these.

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Definitions:

Foreign Company

A business entity that is based in one country but operates and has a presence in other countries outside of its home country.

Foreign Direct Investment

An investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets.

Internationalization Process

The process through which a company expands its operations beyond its national borders into the international market.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or any other business activity, sharing the risks and rewards.