Author Question: Shana's company hopes to become a fully global corporation in the coming years. Which of the ... (Read 147 times)

Kthamas · **on:** Jul 6, 2018

Shana's company hopes to become a fully global corporation in the coming years. Which of the following would best indicate that the company is fully global?

A) exporting and importing
B) licensing
C) setting up a foreign subsidiary
D) franchising

Question 2

A foreign company wants to be able to copy and manufacture TJ Soft programs and sell them in its stores. What would be an appropriate approach for them to use?

A) licensing
B) franchising
C) renting
D) appropriating

nanny · **Reply #1 on:** Jul 6, 2018

Answer to Question 1

Answer: C
Explanation: Licensing, franchising, exporting, and importing are all mid-level actions for a corporation that intends on becoming fully global to take. The step that typically signifies that a company has become fully global is for it to set up foreign subsidiaries. A foreign subsidiary, such as a factory in China, involves the greatest amount of commitment and risk on the part of the parent company.

Answer to Question 2

Answer: A
Explanation: Licensing would be the best approach for the foreign company to use. TJ Soft would sell the foreign company the right to be an official vendor of its products. Then the company would be free to feature TJ Soft products in its stores. Franchising would entail creating an entire operation rather than simply selling products in the company's stores. Neither renting the software nor appropriating it in some way is a defined management term identified in the textbook for a situation like this, and so both are incorrect responses.