When a company exports to one country, licenses to another, has a joint ownership venture in a third, and owns a subsidiary in a fourth, it likely will create a(n) ________ to handle its international activity.
A) global organization
B) international division
C) world product group
D) export department
E) indirect exporting venture

Question

Quizplus · Accepted Answer

An international division is typically created by companies to handle their international activity, as it allows for centralized coordination, control, and decision making. This is particularly useful for companies with complex global operations, such as those described in the question. A global organization or world product group may also be used, but these tend to be broader in scope and may not be as effective for managing specific international activities. An export department and indirect exporting venture are more limited in scope and may not be suitable for companies with a diverse international presence.

When a Company Exports to One Country, Licenses to Another