The choice of whether to sell abroad by exporting,licensing foreign producers,or manufacturing abroad depends on all of the following EXCEPT
A)the nature of government regulations
B)whether the firm's competitive advantage can be transferred abroad in the products it sells or can be written down and clearly transmitted
C)whether customers are looking for some signals as to the firm's commitment to the local market
D)transfer pricing policies of the parent MNC

Question

Quizplus · Accepted Answer

Transfer pricing policies of the parent MNC are not a factor in deciding whether to sell abroad through exporting, licensing foreign producers or manufacturing abroad. The other options listed are important factors that must be considered when making this decision.

The Choice of Whether to Sell Abroad by Exporting,licensing Foreign