Scenario - Sharon Cannon

Multiple Choice

Scenario - Sharon Cannon
Sharon Cannon was an MBA student in Detroit, Michigan, with a managerial position at the Ford Motor Company plant. She was invited to join a company that had entered into a joint venture with a German firm to manage a Volkswagen plant. Sharon would be under contract for one year, with an option to renew for a total of three years. Her salary would be 350% more than she was currently earning, and she would be given two all-expenses paid vacations each year. The money and the benefits sounded very nice, but Sharon wasn't sure what the best choice would be.
-The American firm joining in the joint venture:

A) faces lower risk than if it were using a wholly-owned foreign affiliate.
B) enjoys greater control than is it were using the wholly-owned affiliate.
C) can anticipate a lower cost than a company that uses global outscoring.
D) all of these.
E) none of these.