According to the Chapter 7 Strategic Focus, China's Recent Approach

question 74

Multiple Choice

According to the Chapter 7 Strategic Focus, China's recent approach to acquisitions has been to focus on hard assets (e.g., mineral deposits or R&D facilities) instead of established branded products because

• A) China's initial acquisition activities in branded products was highly successful and it wanted to apply those successful techniques to hard assets which would create more value for Chinese firms.
• B) hard assets around the world had appreciated rapidly and China wanted to take advantage of that appreciation.
• C) China's currency had depreciated relative to currencies in developed countries making acquisition of hard assets in those countries cheaper.
• D) it did not always have the managerial capability to realize successful performance of branded products.

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Definitions:

Initial Cash Outflow

The initial expenditure involved in a project or investment, often referring to the sum of money paid at the start.

Required Return

The minimum profit or yield that an investor aims for when investing in a financial instrument or project.

Payback Period

The duration required to recover the cost of an investment, calculated by dividing the initial investment by the annual cash inflow.

Heating System

A mechanism for maintaining temperatures at an acceptable level; by using thermal energy within a home, building, or other dwelling.