Which method of entering the global marketplace involves active ownership of a foreign company and faces the greatest potential risk?
Explanation
This question requires students to compare different market entry strategies and identify the one with the highest associated risk.
Other questions
What is the primary focus of having a 'global vision' in business, as described in section 3.1?
What was the total U.S. trade deficit in 2016, according to section 3.1?
What is the key difference between balance of trade and balance of payments as explained in section 3.1?
According to the principle of comparative advantage discussed in section 3.2, what should a country do?
What is the definition of outsourcing as provided in section 3.2?
Which of the following is listed in section 3.3 as a 'nontariff barrier' to trade?
What is the practice of 'dumping' in international trade, according to section 3.4?
What was the primary achievement of the Uruguay Round of trade negotiations, as mentioned in section 3.4?
What is the primary role of the International Monetary Fund (IMF) in fostering global trade, according to section 3.4?
What does the North American Free Trade Agreement (NAFTA), ratified in 1993, encompass?
According to section 3.5, the European Union's single market is credited with creating how many new jobs and generating how much new wealth?
What is defined as the 'least complicated and least risky' way for a company to enter the global market, according to section 3.6?
What is countertrade, as described in section 3.6?
What is the difference between expropriation and confiscation in a hostile political climate, as explained in section 3.7?
What is the definition of a multinational corporation according to section 3.8?
Which of the following is NOT listed as an advantage of multinational corporations in section 3.8?
Which two countries are highlighted in section 3.9 as emerging economic powerhouses that are impacting global business?
What is a key difference in how China's and India's economic growth have been driven, according to section 3.9?
How is a trade deficit defined in section 3.1?
What is the principle of absolute advantage, as explained in section 3.2?
What is a primary argument against the use of tariffs, according to section 3.3?
What is the purpose of an embargo as a nontariff barrier?
What is the purpose of the World Bank, as described in section 3.4?
A 'preferential tariff' is best described as which of the following?
In the context of entering the global marketplace, what is 'licensing'?
What is the primary advantage of contract manufacturing as a global market entry strategy?
According to section 3.7, what is 'nationalism' in the context of international business?
What is the basic purpose of infrastructure in relation to a country's economic development?
What fundamental reason for the growth in world trade is identified in section 3.9 under 'Market Expansion'?
According to section 3.1, what was the approximate U.S. balance of payments deficit in 2016?
What is the effect of a currency 'devaluation' on a nation's exports?
Which of the following is NOT listed as a benefit of globalization in section 3.2?
What is the primary function of the World Trade Organization (WTO)?
The Central America Free Trade Agreement (CAFTA), passed in 2005, includes the United States and which other group of countries?
In a franchising agreement, what is the role of the 'licensee'?
What is a primary advantage of a joint venture for entering a global market?
How much of all international trade involves countertrade, according to the U.S. Commerce Department estimate in section 3.6?
Which of the following is NOT an example of a cultural difference that can be a barrier to international trade, as mentioned in section 3.7?
According to section 3.8, the sales of which two multinational corporations are larger than the GDP of all but a few nations?
What is a key trend in 'Resource Acquisition' for companies going global, as described in section 3.9?
Since 1950, what has been the typical state of the U.S. balance of payments, according to section 3.1?
According to section 3.2, approximately how many U.S. jobs were outsourced in 2015?
What is the goal of buy-national regulations?
What is a 'free-trade zone' as defined in section 3.5?
What significant fine did the European Union levy against Google for its antitrust behavior, as mentioned in section 3.5?
Which statement best reflects the change in U.S.-Mexican trade since NAFTA came into effect?
What is a primary negative consequence of global trade that people fear, according to section 3.2?
What is the primary characteristic of Mercosur, as described in section 3.5?
About what percentage of U.S. manufactured exports are shipped by the 250 largest companies?