Which is not one of the four conditions that make entry via an internally developed start-up strategy in a foreign country appealing?

Question

Quizplus · Accepted Answer

Entering a new foreign country via internal development and building a foreign subsidiary from scratch makes sense when: (1) a company already operates in a number of countries; (2) has experience in getting new subsidiaries up and running and overseeing their operations; (3) has a sufficiently large pool of resources and competencies to rapidly equip a new subsidiary; (4) an internal start-up is cheaper than making an acquisition; (5) adding new production capacity will not adversely impact the supply-demand balance in the local market; (6) a start-up subsidiary has the ability to gain good distribution access (perhaps because of the company's recognized brand name); and/or (7) a start-up subsidiary will have the size,cost structure,and resources to compete head-to-head against local rivals.Adding new production capacity that results in a supply-demand imbalance would tend to make an internally developed start-up in a foreign country unappealing.

Which Is Not One of the Four Conditions That Make