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Homework answers / question archive / Scifit Bicycles, a U
Scifit Bicycles, a U.S. firm, is considering the idea of entering the EU market through an international licensing agreement. What is the main disadvantage of this entry method for Scifit?
significant financial and political risks
limited market opportunities
high tariff costs
foreign investment restrictions
ANSWER
d) foreign investment restrictions
Foreign Portfolio Investment is any investment made by a person resident outside India in capital instruments where such investment is (a) less than 10 percent of the post issue paid-up equity capital on a fully diluted basis of a listed Indian company or (b) less than 10 percent of the paid up value of each series of capital instruments of a listed Indian company.
