Establishing a Subsidiary in a Foreign Market to Take Advantage

question 10

Multiple Choice

Establishing a subsidiary in a foreign market to take advantage of all essential value chain activities requires a strategy that

• A) establishes a wholly owned subsidiary.
• B) acquires a foreign company.
• C) supports direct control over all aspects of operating in a foreign market.
• D) establishes a start-up operation.
• E) All of these.

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Definitions:

Disinflates

The process of reducing the rate of inflation; a slowing in the rate at which prices increase, typically as a result of monetary policy actions.

Sacrifice Ratio

The sacrifice ratio is an economic concept that measures the cost of reducing inflation in terms of lost output or unemployment.

Disinflates

A process in which the rate of inflation decreases over time but does not turn negative.

Disinflation

A slowdown in the rate of inflation, indicating a reduction in the rate at which prices for goods and services rise over time.