Maria and Sasha,researchers at Gem Corp

question 39

Multiple Choice

Maria and Sasha,researchers at Gem Corp.,discuss the best method for their firm to enter a foreign market with wholly owned subsidiaries.Maria believes that greenfield investments would be more suitable,while Sasha believes that acquiring a local firm is a better option.Which of the following weakens Maria's argument?

• A) Gem requires high control right from production to marketing in the new market.
• B) Gem has the capabilities and resources required to set up a unit from scratch.
• C) Gem finds integration to be very difficult because of the cultural differences with the host country.
• D) Gem needs to enter the new market at the earliest to gain advantage of the product cycle.

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