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Nanocell (Scenario) Two Years Ago, Nanocell, a Small Canadian Company, Began Manufacturing

Question 97

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Nanocell (Scenario)
Two years ago, Nanocell, a small Canadian company, began manufacturing a solar cell that holds a charge for 24 hours, many times longer than any competing solar cell. International sales of the palm-sized solar cell occurred quickly, and soon Nanocell was exporting to Australia, China, and Africa. Today, Nanocell is a growing multinational enterprise with sales expected to soar even higher.
-Nanocell's management team is considering entering into other foreign markets using a strategy of foreign direct investment (FDI) . Which of the following, if true, would most support the claim that expansion through FDI would benefit Nanocell?


A) Most small companies enter foreign markets by exporting, as Nanocell did two years ago.
B) SMEs prefer FDI as a foreign market entry strategy even though it is expensive.
C) Nanocell plans to cut advertising costs in the long run.
D) FDI is a common and successful foreign market entry strategy for multinational enterprises.

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