Maria and Sasha, Researchers at Gem Corp

Multiple Choice

Maria and Sasha, researchers at Gem Corp., discuss the best method for their firm to enter a foreign market with wholly owned subsidiaries. Maria believes that greenfield investments would be more suitable, while Sasha believes that acquiring a local firm is a better option. Which of the following weakens Maria's argument?

A) Gem requires high level of control right from production to marketing in the new market.
B) Gem has the capabilities and resources required to set up a unit from scratch.
C) Gem finds integration to be very difficult because of the cultural differences with the host country.
D) Gem needs to enter the new market at the earliest to gain advantage of the product cycle.