A Form of Low-Risk and Capital-Free Entry into International Markets

question 36

Multiple Choice

A form of low-risk and capital-free entry into international markets that includes local manufacturing is referred to as

• A) indirect exporting.
• B) direct ownership.
• C) joint ventures.
• D) licensing.
• E) direct exporting.

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Definitions:

Operating Cash Flows

Cash generated from a company's regular business operations.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board that is used internationally.

Direct Method

An accounting method used in cash flow statements that lists major categories of gross cash receipts and payments, providing a clearer picture of a company's cash flow from operating activities.

Cash Flow Statement

A report detailing how variations in balance sheet positions and income streams influence the cash and cash equivalents, segmented into operations, investments, and financial transactions.