A Canadian software company decides to buy majority stakes in a Chinese firm producing software. The company even adds to its Chinese production capacity. Which of the following could be a potential disadvantage of this direct investment?
A) The Canadian firm will find it difficult to achieve economies of scale.
B) This is the least financially rewarding mode of international expansion.
C) The Canadian firm will have very limited control on its Chinese investment.
D) The Canadian firm will be subject to the piracy problems in China.
E) The Canadian firm will be subject to a higher cost of production in China.
D
You might also like to view...
Database Services sells service plans for commercial computer maintenance
The price for each plan is $1,350 per year, paid in advance. On October 1, 2017, a service plan was sold to a new customer for cash, and the plan covers the period October 1, 2017 to September 30, 2018. Prepare the December 31, 2017 adjusting entry. What will be an ideal response
If it can be applied, the least-damaging recovery option is ________
A) restoration from backup tapes B) total reinstallation C) repair during continuing server operation D) All of the above are about equally damaging