Assume That an MNC Purchases a Foreign Building, and Then

Multiple Choice

Assume that an MNC purchases a foreign building, and then leases the building to another party and allows that party to operate the business in the building for 30 years if the party follows standards set by the MNC. This process is referred to as:

A) a foreign acquisition.
B) franchising.
C) a licensing agreement.
D) exporting.
Answer Key