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

Question 88

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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.
-Which of the following questions is most relevant for evaluating whether Nanocell should partner with an agent or a foreign distributor to expand its overseas sales?


A) Has FDI been successfully used by solar technology companies expanding abroad?
B) What would be the cost of capital required to finance additional expansion?
C) Who do Nanocell's competitors typically collaborate with when expanding operations?
D) Does Nanocell have an appropriate legal team in place to handle the requirements of expansion?

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