The VP of human resources is skeptical of the plans to expand into Vie

QUESTION

The VP of human resources is skeptical of the plans to expand into Vietnam. PyraTex is committed to remaining a small company, and she argues that it doesn’t have the resources to be a multinational enterprise.

Which of the following, if true, most weakens her argument?
A) The company’s recent effort to expand its foreign exports was a costly failure.
B) The company’s main international competitors are all large companies.
C) The company can go multinational by opening a relatively small production facility run by low-wage laborers.
D) Most of the company’s existing domestic employees are production workers.
E) Entering foreign markets requires the research of many market specialists.

ANSWER

Answer: C
Explanation: C) The popular image of a multinational company is a huge conglomerate employing many thousands of people around the world. But a smaller company can also go multinational on a much simpler scale. Choice A: The VP’s concern about becoming a multinational enterprise seems justified if the company can’t successfully handle the less challenging goal of expanding exports. Choice B strengthens the VP’s argument by suggesting that a large company would be more likely to succeed in this international market. Choices D and E are not relevant to the argument.