Assume That You Are a Consultant for a Telecom Giant

question 64

Essay

Assume that you are a consultant for a telecom giant based in the United States that wishes to create a joint venture with a Chinese electronics company. The joint venture is expected to enter and compete in the eastern European market. Suggest an organizational structure that would be most suitable for this joint venture. Also, comment on why the structure might be a good one to use.

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Definitions:

Major Currencies

The world's most widely traded currencies, typically including the US Dollar, Euro, Japanese Yen, and British Pound among others.

Managed Floating Exchange Rate

An exchange rate that is allowed to change (float) as a result of changes in currency supply and demand but at times is altered (managed) by governments via their buying and selling of particular currencies.

Central Banks

Financial institutions responsible for the oversight of the monetary system for a nation or group of nations, controlling policies like interest rates and money supply.

Foreign Exchange

The exchange of one currency for another, or the conversion of one currency into another currency.