Levi Strauss has an organization in a foreign country that has agreed to sell their products, to collect payments from the buyers, and to make sure that the buyers are satisfied. The organization is not part of Levi Strauss and may represent several non-competing firms at the same time. The organizational structure that Levi Strauss has selected is called a(n)
A) strategic alliance.
B) independent agent.
C) branch office.
D) licensing agreement.
E) direct investment.

Question

Quizplus · Accepted Answer

Levi Strauss has utilized the services of an independent agent, which is a non-affiliated organization that can represent multiple non-competing firms while selling their products, and is responsible for collecting payment and ensuring customer satisfaction. This is different from a branch office, which would be a company-owned and managed location in a foreign country, and a licensing agreement, which would grant permission to a foreign entity to use Levi Strauss's brand or technology. A strategic alliance and direct investment are also different types of foreign market entry strategies that involve more significant commitments and mergers with foreign partners.

Levi Strauss Has an Organization in a Foreign Country That