Which of the following describes a focal firm retaining core

Which of the following describes a focal firm retaining core activites within its own organization and delegating distribution and customer service responsibilites to an independant contractor?

An indian automobile company opens a factory in New Delhi

A bank on Grand Cayman cancels its research contract with a Jamican consultant and decides to bring all research activites in-house

A Lithuanian company sends one of its employees to open a market research office in Paris.

A Chinese manufactuer opens its sales offices in the U.S., which are staffed with its own employees.

A clothing manufactuer in Cameroon hires a Brazilian distributor to market the clothing throughout Latin America.

Solution

The focal firm is the initiator of IB(International Business) transaction, including MNEs(Multinational Enterprises) and SMEs(Small and medium enterprises).The focal firm may retain core activities such as production and marketing, and outsource distribution and customer service responsibilities to foreign-market based distributors, thus the global reconfiguration of the value chain.

The value chain can be thought of as the complete business system of the focal firm. It comprises all of the activities that the focal firm performs.  

Thus from the above explaination it means option 1 is correct i.e. An indian automobile company opens a factory in New Delhi whereby all production and marketing is carried out by automobile company and customer service distribution is done by factory in New Delhi.