Derrido is an American firm that has produced several successful animated TV series in the United States. It is considering contracting with one or more international companies as a way to market its products overseas. Derrido's marketing director thinks that the company should craft a contractual agreement as an initial entry strategy, because the company might want to choose a more advanced entry strategy later. Which of the following, if true, would strengthen this position?
A) Foreign partners usually want to enter into contractual agreements with American companies for a long-term period.
B) A contractual agreement should spell out as many expectations of the foreign partner as possible.
C) Contractual agreements should be entered into only if the foreign partner is extremely reliable.
D) Contractual agreements require approval by legal specialists from all countries involved.
E) Contractual agreements allow a company to provide for open, flexible terms of operation.

Question

Quizplus · Accepted Answer

The option E states that contractual agreements allow a company to provide for open, flexible terms of operation, which strengthens the position of Derrido's marketing director in favor of crafting a contractual agreement as an initial entry strategy. This means that Derrido can have more control over the terms of the agreement and have greater room for adjustment in case of changes in the market or business conditions. Option A, B, C, and D may not directly support this position or may provide limited support.

Derrido Is an American Firm That Has Produced Several Successful