The distinction between _____ is what defines an MNE from a firm that merely exports or imports.
A) direct and indirect exports
B) licensing and franchising
C) small- and large-scale of entry
D) equity and non-equity modes of entry

Question

The distinction between _____ is what defines an MNE from a firm that merely exports or imports.
A) direct and indirect exports 
B) licensing and franchising 
C) small- and large-scale of entry 
D) equity and non-equity modes of entry

Quizplus · Accepted Answer

The distinction between equity modes (such as foreign direct investment) and non-equity modes (such as exporting and licensing) of entry is what differentiates a multinational enterprise (MNE) from a firm that solely engages in international trade. MNEs have a physical presence and investment in foreign countries through equity modes of entry.

The Distinction Between _____ Is What Defines an MNE from a Firm