When should a company enter a new country via internal development?
What will be an ideal response?
Entering a new foreign country via internal development and building a foreign subsidiary from scratch makes sense when:
• a company already operates in a number of countries,
• a company has experience in getting new subsidiaries up and running and overseeing their operations,
• a company possesses a sufficiently large pool of resources and competencies to rapidly equip a new subsidiary with the personnel and capabilities it needs to compete successfully and profitably,
• a company determines that creating an internal start-up is cheaper than making an acquisition,
• adding new production capacity will not adversely impact the supply-demand balance in the local market,
• a start-up subsidiary has the ability to gain good distribution access (perhaps because of the company's recognized brand name), and/or
• a start-up subsidiary will have the size, cost structure, and resources to compete head-to-head against local rivals.
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Special items reported as part of comprehensive income, but not included in net income, might include:
A. interest expense. B. income and losses from discontinued operations. C. gains or losses on foreign currency exchanges. D. income tax expense.
As a salesperson, you should know that the purpose of the negotiation close is to:
A. get the prospect to reveal true objections. B. overcome a prospect's practical and psychological objections. C. make prospects think their haggling has succeeded. D. find ways for both parties to have a fair deal. E. determine who gets the better end of the deal.
Contracts entered into by persons lacking the capacity to do so may be voidable
Indicate whether the statement is true or false
What are hybrid costing systems? Under what circumstances might a company use a hybrid system?
What will be an ideal response?