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Theodore and James decide to enter into an agreement with a firm in Europe allowing them to use their software, brand name, and business methods in return for a lump sum payment and a percentage of sales. The European firm is a service organization that plans to use the software to serve its customers. Their agreement is a(n) ________.

User Hizzy
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Answer:

The correct answer is multidomestic

Step-by-step explanation:

A company that follows a multidomestic strategy adapts its products to each country in which it operates. The characteristics of the product are adapted to the local domestic environment, taking into account food preferences, religious customs and other characteristics that define the locality. Companies choose to follow this strategy because their products will be better received by local customers, instead of being seen as something unusual that is produced by a foreign company.

User Wasim Abuzaher
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