Lisa Fritz Is Deciding Which Mode of Entry to Propose

question 60

Multiple Choice

Lisa Fritz is deciding which mode of entry to propose to a Japanese pharmaceutical manufacturer thinking of entering the relatively small Peruvian market.Which of the following would be least appropriate for such a market?

• A)Establishing a compounding facility
• B)Establishing an integrated production facility
• C)Exporting to Peru utilizing a marketing subsidiary
• D)Exporting to Peru utilizing a Peruvian distributor

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Definitions:

Debt

The total amount of money owed by an individual, company, or other entity to lenders, which can include loans, bonds, mortgages, and other forms of financial liabilities.

Liquidity

Liquidity refers to how easily an asset or security can be converted into cash without affecting its market price.

Current Liabilities

Current Liabilities are debts or obligations that are due to be paid within one year or within the normal operating cycle of a business, whichever is longer.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner's claim on the business assets.