When a Multinational Company Chooses to Invest in Foreign Markets

question 28

Multiple Choice

When a multinational company chooses to invest in foreign markets with wholly owned subsidiaries, these subsidiaries may be acquisitions or _______________
Operations.

• A) joint venture
• B) strategic alliance
• C) greenfield
• D) franchise
• E) piggyback

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Definitions:

Price Discrimination

The strategy of selling the same product at different prices to different segments of consumers, based on their willingness to pay.

Combination Meal

A set meal at a restaurant that includes multiple items at a fixed total price, often providing a discount compared to purchasing items separately.

Student ID

A unique identifier assigned to students by educational institutions for tracking and administrative purposes.

Reservation Price

The maximum price that a consumer is willing to pay for a product, beyond which they would choose not to purchase it.