Japanese and European Engineering Companies Entered China to Participate in Building

Multiple Choice

Japanese and European engineering companies entered China to participate in building the world's largest network of high-speed trains worth billions of dollars.Companies such as Kawasaki Heavy Industries (Japan) ,Siemens (Germany) ,and Alstom (France) were joint-venture partners with domestic Chinese companies.These firms now allege that the Chinese partners built on the Japanese and European partners' advanced technology to create their own,next-generation high-speed trains.This example best highlights the _____ that firms can experience when expanding overseas.

A) threat of new entrants
B) liability of foreignness
C) loss of reputation
D) intellectual property exposure