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Author Question: Shana is considering forming a partnership with a Dutch corporation that will create an entirely new ... (Read 136 times)

kfurse

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on: Jul 6, 2018
Shana is considering forming a partnership with a Dutch corporation that will create an entirely new company called Half Moon. What kind of enterprise will Half Moon be?
 
  A) a multidomestic corporation
  B) a foreign subsidiary
  C) a joint venture
  D) a domestic subsidiary

Question 2

Shana's company went global several years ago. Which of the following was likely to have been the first step it took in going global?
 
  A) outsourcing
  B) importing
  C) exporting
  D) licensing


pratush dev

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Reply #1 on: Jul 6, 2018
Answer to Question 1

Answer: C
Explanation: A partnership that creates an entirely new company is a special type of strategic alliance called a joint venture. In a foreign or domestic subsidiary and a multidomestic corporation, the original corporation maintains control of the branches, which is not the case with this joint venture.

Answer to Question 2

Answer: A
Explanation: The first step that a company takes when it goes global is almost always outsourcing, or global sourcing. This involves obtaining raw materials and labor from outside the home country. Outsourcing is followed by steps such as importing, exporting, and licensing.


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