Questions: A U.S. manager is tasked with choosing the next foreign market in which to establish a manufacturing facility. The manager needs to choose between a mark that allows for the firm to derive income from its facility and one where facilities are partially owned by the government. Which factor is the manager considering? a. democracy b. patents c. property rights d. common law

A U.S. manager is tasked with choosing the next foreign market in which to establish a manufacturing facility. The manager needs to choose between a mark that allows for the firm to derive income from its facility and one where facilities are partially owned by the government. Which factor is the manager considering? a. democracy b. patents c. property rights d. common law
Transcript text: A U.S. manager is tasked with choosing the next foreign market in which to establish a manufacturing facility. The manager needs to choose between a mark that allows for the firm to derive income from its facility and one where facilities are partially owned by the government. Which factor is the manager considering? a. democracy b. patents c. property rights d. common law
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Solution

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The answer is C: property rights.

Explanation for each option:

a. Democracy: While the type of government (democracy vs. other forms) can influence business decisions, the specific issue here is about ownership and control of facilities, which is more directly related to property rights rather than the broader concept of democracy.

b. Patents: Patents are related to intellectual property and the protection of inventions and innovations. The question is about the ownership and control of physical manufacturing facilities, not intellectual property.

c. Property rights: This is the correct answer. Property rights refer to the legal rights to use, control, and derive income from property. The manager is considering whether the firm can fully own and control the manufacturing facility or if the facility will be partially owned by the government, which directly relates to property rights.

d. Common law: Common law is a legal system based on judicial decisions and precedents rather than statutory laws. While it can influence business operations, it is not directly related to the issue of ownership and control of manufacturing facilities in the context provided.

Therefore, the factor the manager is considering is property rights.

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