Refer to Case Study Soda Stereo.

Of the following questions, which one is most relevant for the decision of whether Soda Stereo should partner with an agent or foreign distributor to expand its international sales?

Select one:

a.

Does Soda Stereo have a strong legal and accounting team in place to handle the requirements of the expansion?

b.

Has FDI been successfully used by sound system companies expanding abroad?

c.

Who do Soda Stereo's competitors typically partner with when expanding international operations?

d.

What is the cost of capital required to finance additional expansion?

Give explanation