Question

Garnet Footwear suffered significant financial losses and had to close its foreign operations. The dissolution process took six months and cost four percent of the firm's value. Where were Garnet's foreign operations most likely located?A) Ecuador

B) France
C) Japan
D) China

Answer 1

C) Japan

Step-by-step explanation:

To evaluate potential markets, we must consider the total size of the markets relevant to a multinational corporation's total sales:

• Ecuador is a very small market, so any loss would be very small and insignificant.
• China is a huge market, and any loss would be very large.
• France and Japan are relatively large markets that could fit the description.

If we research a little more, we can find out that a dissolution process in France is fairly fast and takes only 1 month to be completed. That leaves Japan as the only possible option.