A New Subsidiary (Scenario)

question 53

Multiple Choice

A New Subsidiary (Scenario)
Philip works for a large multinational corporation with offices in 23 countries, 64,000 employees worldwide, and $8 billion in annual sales. The company was involved in several different industries: automotive parts, rapid transit systems, and recreational vehicles. Philip is the executive vice-president of new technology ventures.
Philip wants you to investigate and potentially launch a business focusing on alternative energy systems. The first area you are to explore is the potential business opportunity of ocean tidal energy. You are to explore what technology already exists that can be exploited, what additional technology development is needed, and figure out the viability of the tidal energy as an entrepreneurial venture.
-The idea for the marine tidal energy is not brand new,and the technology still holds a great deal of opportunity.Once you have thoroughly researched the venture's feasibility,the next most important step is to ________.

• A)research competitors
• B)find possible customers
• C)develop a business plan
• D)create a marketing strategy

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Definitions:

Economic Growth

A growth in the economy's output of goods and services over a certain time frame, usually indicated by an upsurge in the real Gross Domestic Product.

U.S. Imports

Goods and services bought by residents of the United States from other countries, contributing to the country's total expenditures.

Trading Partners

Countries, organizations, or individuals that engage in trade with each other, exchanging goods, services, or financial instruments.

Trade Deficit

A situation in which a country's imports of goods and services exceed its exports, leading to a negative balance of trade.