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olga2289 [7]
3 years ago
10

Erna Boogard bakes cakes for a living. Her recipes were so popular in The Netherlands that her company has grown dramatically. S

he has just sold the right to manufacture her cakes to to firms in Canada and the US. Which of the following ways of entering into the global marketplace is Erna's company using?
a.Licensing

b. Franchising

c. Exporting

d. Joint Ventures
Business
1 answer:
bekas [8.4K]3 years ago
3 0

Answer:

It is Franchising (B)

Explanation:

Option (A) False.

Licensing is  contractual  transaction  where  the  company (licensor) offers  some  proprietary  assets   to  foreign company (licensee) in exchange for royalty fees .

Licensing  is considered a low involvement and low-control entry strategy, since it does not necessarily entail equity participation, and because control over operations and strategy is granted to the licensee in exchange for a lump-sum payment,   and  a  commitment  to  abide  by  any  terms  set out  in  the  licensing  contract.

Option (B) True.

A franchise agreement is a contractual arrangement between two independent firms, whereby the franchisee pays the  franchisor  for  the  right  to  sell  the  franchisor's  product  and/or  the  right  to  use  the  franchisor's  trademark  at  a given place and for a certain period  of time.

Franchisors  typically   offer   managerial  assistance and exercises  substantial  control  over the franchisee.

Option (C) False

Exporting- here the  company  becomes  directly  involved  in  marketing  its  products  in  foreign  markets.  Although  the associated cost  and  risks  are  greater,  so are the profits too ,all things being equal.

Option (D) False

This is when two or more independent companies create a separate entity but still still maintain their former entity . As a penetration strategy, it does not only reduced risks but also decreases individual involvement.

It can also be used to eliminate risk of entry barriers for a new entrant in an existing market.

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Option (b) for a response. In order to keep the expenditure multiplier from exceeding 1, output must increase while consumption must decrease.

<h3>Spending multiplier: What does it tell you?</h3>

An economic indicator of the impact that changes in government spending and investment have on a nation's Gross Domestic Product is the expenditure multiplier, often known as the fiscal multiplier.

<h3>When the multiplier is negative, what does that mean?</h3>

The negative multiplier effect happens when a spending leak or initial withdrawal from the circular flow has further impacts and a larger final decline in real GDP.

<h3>Why does multiplier exceed 1?</h3>

The rise in the national product indicates a rise in national income. Consumption demand rises as a result, and businesses produce to satisfy it. As a result, the increase in investment is greater than the increase in national income and product. There is a multiplier effect that exceeds one.

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4 0
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The answer to this question would be:
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7 0
3 years ago
The following statements accurately describe the difference between saving and investing EXCEPT…
vagabundo [1.1K]

Answer:

Saving can only be done in person. Investing can be done both in-person and online.

Explanation:

Saving refers to keeping some funds aside for use during emergencies. Individuals and institutions also save as a way of accumulating funds for a specific intention. Banks and other deposit-taking institutions offer saving services to pool funds and lend them for investment and consumption.

Saving will attract lower interest rates, sometimes below the inflation rate. Banks offer lower rates on saving and charges a higher interest rate to borrowers to make profits. Because saving offer lower returns, they are suitable for short-term periods. Savings are relatively safer than investment.

Investments offer higher returns but have a higher risk. Due to their price volatility, investments are suited for the long-term to safeguard against price fluctuations.

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3 years ago
A corporation issued 8% bonds with a par value of $1,000,000, receiving a $20,000 premium. On the interest date 5 years later, a
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$22,000 gain.

Explanation:

Please see attachment

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Bonita Manufacturing uses a flexible budget. It has the following budgeted manufacturing costs for 24700 pairs of shoes: Fixed M
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Answer:

the  total budgeted manufacturing cost is $292,600

Explanation:

The computation of the total budgeted manufacturing cost is shown below;

Total Budgeted Costs = Fixed Costs + Variable costs

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