Equity modes tend to reflect relatively smaller commitments to overseas markets, whereas non-equity modes are indicative of relatively larger, harder-to-reverse commitments.

Equity modes tend to reflect relatively smaller commitments to overseas markets, whereas non-equity modes are indicative of relatively larger, harder-to-reverse commitments.


a. true
b. false


Answer: b. false


(1) Non-equity modes: A mode of entry (exports and contractual agreements) that tends to reflect relatively smaller commitments to overseas markets.)
(2) Equity modes (A mode of entry (JV and WOS) that indicates relatively larger, harder-to-reverse commitments to overseas markets.)


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