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“One example of a global company that has ‘put on its China hat’ is the telecommunications company Alcatel-Lucent. Since 2002, Alcatel-Lucent has operated in China through its subsidiary Alcatel Shanghai Bell (ASB), in which the Chinese government has a minority stake. This structure has not only allowed Alcatel-Lucent to position itself in the Chinese market, but also to successfully expand to Africa. The EXIM Bank has granted the company US$63.3m in funding to aid its overseas expansion. In Africa, ASB has won deals in countries such as Ghana, Angola, and Nigeria.”

This excerpt would best fit after the segment.

Question

The following excerpt was removed from the original  version of the text. “One example of a global company that has ‘put on its China  hat’ is the telecommunications company Alcatel-Lucent.  Since 2002, Alcatel-Lucent has operated in China through  its subsidiary Alcatel Shanghai Bell (ASB), in which the  Chinese government has a minority stake. This structure  has not only allowed Alcatel-Lucent to position itself in the  Chinese market, but also to successfully expand to Africa.  The EXIM Bank has granted the company US$63.3m  in funding to aid its overseas expansion. In Africa, ASB  has won deals in countries such as Ghana, Angola, and  Nigeria.”This excerpt would best fit after the segment. Alternativa A: “Previously, China was the main beneficiary of FDI  (Foreign Direct Investment) inflows primarily from  Western companies.” (lines 2-5) Ou Alternativa B: “And African firms can benefit from partnering with  Chinese firms.” (lines 35-36) Ou Alternativa C: “In short, global firms with a presence in both China  and Africa can gain advantages in delivering global  economies of scale in their Chinese and African  operations by integrating production and value  delivery.” (lines 50-54) Ou Alternativa D: “Another Managing Director of a multinational company  with strong presence in Africa stresses the importance  of utilizing China as the biggest supply source in the  world.” (lines 66-69) Ou Alternativa E: “For African businesses, the benefits of partnering with a Chinese firm involve both increased liquidity and more tangible gains.” (lines 90-92)

Gloomy Gulch · Accepted Answer

Alternativa [D] “Another Managing Director of a multinational company  with strong presence in Africa stresses the importance  of utilizing China as the biggest supply source in the  world.” (lines 66-69)   d) “Another Managing Director of a multinational company with strong presence in Africa stresses the importance of utilizing China as the biggest supply source in the world.” (lines 66-69)The question passage stresses the point of having to test the waters on that continent by bearing a well recognised badge, in this case being part of a franchise established on the Chinese mainland. Thsi helps investors work their way through the unfamiliar woods that is teh AFrican continent.

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