Which of the following is characteristic of cross-border contractual relationships?
A) When compared to FDI, they are less susceptible to volatility and risk, and tend to bring both parties a predictable stream of revenue.
B) The focal firm attains maximum control by establishing a physical presence, and ownership of key assets, in the foreign market.
C) It attracts high attention and criticism for the focal firm because of the local perception of foreign entities.
D) They are governed by a contract that provides the focal firm with no control over the foreign partner.
Question 2
Firms often establish their own sourcing operations abroad to maintain control of outsourced activities and technologies.
Indicate whether the statement is true or false
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