Command – decisions are made with no involvement.
Consult – invite input from others.
Vote – discuss options and then call for a vote.
Consensus – talk until everyone agrees to one decision
Complete Question:
Which method of entering a foreign market has a domestic firm actively managing a foreign company or overseas facility?
Group of answer choices
A. joint venture
B. direct ownership
C. exporting
D. licensing
E. contract manufacturing
Answer:
B. Direct ownership.
Explanation:
Direct ownership is a method of entering a foreign market that has a domestic firm actively managing a foreign company or overseas facility.
Generally, it considered to be a good option when there exist similarities between the domestic and foreign cultures and when political risks associated with the market are very minimal or little.
However, direct ownership is considered to be the riskiest method of entering a foreign market and it typically requires more commitment from the business owner than any other method of entering a foreign market such as joint ventures, exporting, licensing, contract manufacturing, piggybacking, franchising etc.
Answer:
$140000
Explanation:
Principle = $700000
Rate = 10%
Time = 2 years
Simple interest = P x R x T / 100
Simple interest = 700000 x 10 x 2 / 100
Simple interest = 70000 x 2
Simple interest = $140000
Answer:
C) a higher real interest rate reduces a borrowing firm's profit and hence its willingness to borrow.
Explanation:
Companies borrow money to leverage their projects, investments or regular business activities. When they borrow money, they do it to earn more money themselves, not just to make a bank or a bondholder earn money. Since the company must repay its loans, the profit it makes using the loans must offset the money it must pay back in interest.
E.g. I borrow $100 for my business and the bank charges me $7 in interest per year, so I must be able to use that money to increase my profit by more than $7 a year.
