Question

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?

Answer 1

Midas Touch should invest in Coolco company.

Explanation:

Globalization:

It is a process of expanding your business to the market of whole world.

• The reason for investing in Coolco, an air-conditioning manufacturer is that they can do better performance in the global market as they have faced a great pressure at home. Because, the companies that face great competition at home tend to perform better in global market place as compared to the companies that are facing little competition at home.