Midas Touch, a venture capital firm, has the opportunity to invest in one of two firms that are in the process of globalizing. Coolco, an air-conditioner manufacturer, faces intense pressure from its home market. Barker, a dog-toy manufacturer, has encountered little competition in its country of origin. In which company should Midas Touch invest? Select one: a. Coolco, because firms that face stiff competition at home tend to do better abroad b. Coolco, because air conditioners cost more to ship than dog toys do c. Barker, because dog toys cost less to ship than air conditioners do d. Barker, because firms that face little or no competition at home tend to do better abroad

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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Midas Touch, a venture capital firm, has the opportunity to invest in one of two firms that are in the process of globalizing. Coolco, an air-conditioner manufacturer, faces intense pressure from its home market. Barker, a dog-toy manufacturer, has encountered little competition in its country of origin. In which company should Midas Touch invest?
Select one:
a. Coolco, because firms that face stiff competition at home tend to do better abroad
b. Coolco, because air conditioners cost more to ship than dog toys do
c. Barker, because dog toys cost less to ship than air conditioners do
d. Barker, because firms that face little or no competition at home tend to do better abroad
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