A Domestic Firm and a Foreign Firm Sharing the Cost

question 22

Multiple Choice

A domestic firm and a foreign firm sharing the cost of developing new products or building production facilities in a foreign country constitute a ________.

• A) franchising agreement
• B) strategic alliance
• C) foreign subsidiary
• D) joint venture

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Definitions:

Global Integration

The process of international interconnection and cooperation, through which businesses and economies around the world become more interdependent.

Centralized Arena

A concept or structure where decision-making and authority are concentrated at a single point, especially within an organization.

Multidomestic Strategy

A corporate strategy that involves producing products or services tailored to individual local markets.

Tailor

To adapt or modify something to suit a particular need or preference.