Executives at a U.S. firm are debating whether to start a new operation in Russia or acquire an existing one. Which of the following factors best supports a decision to start up a new operation in Russia?

A) The Russian government places restrictions on the outward transfer of foreign capital.
B) Labor relations at existing Russian firms are poor and difficult to change.
C) Russia's currency is weak and stock market prices are significantly depressed.
D) Existing companies have goodwill and positive brand recognition in Russia.

B

Business

You might also like to view...

Which of the following sequences accurately represents the hierarchy-of-effects model of marketing communications?

A) attention-interest-desire-action B) awareness-interest-evaluation-trial-adoption C) awareness-knowledge-liking-preference-conviction-purchase D) exposure-reception-cognitive response-attitude-intention-behavior E) knowledge-persuasion-decision-implementation-confirmation

Business

The ________ is the rate of return that a firm must earn on its investments in order to maintain the market value of its stock

A) yield to maturity B) cost of capital C) internal rate of return D) modified internal rate of return

Business