Service Organizations That Contract with Local Organizations and Thereby Share

question 35

Multiple Choice

Service organizations that contract with local organizations and thereby share the risks and rewards of entering the market use a(n) _________ strategy for entering a foreign market.

• A)foreign direct investment
• B)licensing and franchising
• C)joint venture
• D)accommodation
• E)standardization

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Definitions:

Sunk Cost

A cost that has already been incurred, cannot be recovered, and thus is irrelevant for present and future economic decisions.

Nonrefundable Plane Ticket

A type of airline ticket that cannot be returned for a refund, typically offered at a lower price than refundable tickets.

Overnight Mail

Overnight mail is a shipping service that guarantees delivery of a package or letter to its destination by the next business day.

Loads of Laundry

Units or batches of clothing, linens, and other textiles laundered together in a single process.