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

Quizplus · Accepted Answer

Cross-border contractual relationships, such as licensing or franchising, typically involve agreements that provide a predictable stream of revenue and are generally less risky compared to foreign direct investment (FDI), which involves establishing a physical presence in a foreign market.

Which of the Following Is Characteristic of Cross-Border Contractual Relationships