An International Firm Is Custom-Building a Foreign Subsidiary

question 104

Multiple Choice

An international firm is custom-building a foreign subsidiary. Which of the following is a disadvantage of this market entry strategy:

• A) The firm can use existing managements, facilities and supply chain relationships
• B) Competing firms have time to adjust to the new competitor
• C) It often takes time to build up to full potential
• D) All are disadvantages

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Definitions:

Federal Reserve

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Monetary Policy

The actions undertaken by a central bank, such as the Federal Reserve, to control the supply of money and interest rates in order to achieve macroeconomic goals.

1990's

A decade characterized by major global events, technological advancements, and cultural shifts, lasting from 1990 to 1999.

High Saving Rate

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