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Co. C, an electronics producer based in Singapore is looking to expand to China. China has a great reputation for producing high quality electronics but the govt imposes high levels of tax on foreign investors. Co. C has no previous track record in China and the board wants to keep administration costs to a minimum. Which is the best structure?
1. A JV with a local co in China
2. License a local producer based in China
3. Set up a subsidiary co in China
4. Set up branches in ChinaAns: 2 Correct?
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