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GENB 4350 Final Assignments | Complete Solutions (Verified) Which of the following methods of international expansion offers the lowest source of risk? a. Outsourcing b. Sales agent c. Joint venture d. Merger A representative office: a. Offers a minimal business presence b. Is often the simplest...

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GENB 4350 Final Assignments

Which of the following methods of international expansion offers the lowest source of
risk?

a. Outsourcing
b. Sales agent
c. Joint venture
d. Merger

A representative office:

a. Offers a minimal business presence
b. Is often the simplest overseas presence to set up
c. Usually cannot conduct commercial business activity
d. All of these are correct.

Subject to any limitations of foreign ownership, the main choice(s) of entity for an
overseas operation comprise(s):

a. A liaison or representative office
b. A branch
c. A subsidiary
d. All of these are correct.

A branch is:

a. A local office of the U.S. parent company
b. Not a separate legal entity
c. A local office of the U.S. parent company and not a separate legal entity
d. None of these are correct.

Before hiring workers abroad, the U.S. parent must consider whether having workers in

a given country will trigger:
a. The need for a branch registration
b. The need to incorporate a subsidiary under local law
c. A permanent establishment for tax purposes
d. All of these are correct.

Which of the following methods of international expansion offers the highest source of
risk?

,a. Outsourcing
b. Sales agent
c. Joint venture
d. Merger

If a U.S. company is deemed to have a ________ in another country, it will be liable for
corporate taxes under the domestic tax regime of the relevant country.

a. Value added tax
b. Permanent establishment
c. Net operating loss
d. None of these are correct.

The initial set up costs for establishing an overseas branch or subsidiary include:

a. Registration fees
b. Notary fees
c. Contribution of the initial equity
d. All of these are correct

Which of the following must a U.S. business consider when terminating employees
overseas:

a. Notice requirements
b. Consultation with employees
c. Severance payments
d. All of these are correct.

A subsidiary is:

a. A separate legal entity
b. A signal that the U.S. parent has made a long-term commitment to that country
c. An entity that offers limited liability
d. All of these are correct.

Company X is planning to set up a foreign subsidiary. The laws of that foreign nation
require multiple shareholders. Ideally, the additional shareholders in the subsidiary will
include:

a. Company employees
b. Company board of directors
c. Companies within the U.S. company's group
d. All of these are correct

Company F wants to establish a minimal overseas presence solely to conduct market
research and a feasibility study. Company F should establish a:

, a. Representative Office
b. Branch
c. Subsidiary
d. Hybrid approach

Company B wants to ensure that its foreign subsidiary will keep the U.S. parent
company apprised of factors affecting the local market, including new opportunities and
threats, competitor actions, and educate the local team in the ways and culture of the
U.S. business. Company B should:

a. Appoint one of its own senior managers to head up the overseas subsidiary
b. Appoint a local manager to head up the overseas subsidiary
c. Hire a foreign consultant to head up the overseas subsidiary
d. None of these are correct

Company B is establishing a subsidiary in Europe and wants to comply with local
employment regulations. These regulations stipulate that Company B would have to
provide each employee with written information, including:

a. Start date
b. Job title
c. Salary and benefits
d. All of these are correct

Company F wants to set up an overseas business operation. The overseas business is
expected to grow and Company F wants the overseas operation to offer limited liability
and signal their commitment to the overseas market. Company F should establish a:

a. Representative office
b. Branch
c. Subsidiary
d. Hybrid approach

Company F wants to open a local office overseas that is fully owned and controlled by
the parent company in the U.S. Company F should establish a:

a. Representative office
b. Branch
c. Subsidiary
d. Hybrid approach

Company Z is setting up a foreign subsidiary. To avoid the dual employment problem,
Company Z should:

a. Set up the foreign subsidiary before employment offers are made
b. Employment offers should be made only by duly authorized officers of the foreign

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