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.

Question

Quizplus · Accepted Answer

Starting a new operation could allow the U.S. firm to establish its own labor relations policies from the outset, potentially avoiding the challenges associated with poor labor relations at existing Russian firms.