Questions $37-44$ are based on the following.

EuFa, S$.$A$.,$ is a large European food company that sells its products across the European Union. Its most recent product line, marketed with the brand name Delicious Manna, targets young professionals. The Delicious Manna line combines the convenience of prepared foods with the benefits of fresh ingredients. Specifically, each product in the line provides consumers with the recipe, ingredients, and techniques for preparing the dish at home

EuFa wants to build on its success in two ways. The first growth strategy is to introduce the Delicious Manna line to North America, with products based on popular national dishes and regional favorites. EuFa wants to control its manufacturing processes to ensure quality, but also believes that a business partner could provide the financial support, access to distribution, and cultural insight necessary to develop nutritional and regional dishes. EuFa's CFO believes that introducing the Delicious Manna line to North America would result in an initial cash outflow of $$2,800,000$ and yield cash flows of $$300,000$ by the end of the first year. Cash flows are expected to grow at $5$ percent in perpetuity thereafter.

The second growth strategy is to commission celebrity chefs to develop new products of higher quality for European markets. These new products would be branded Delicious Manna Signature Series and would sell at higher prices. Costs of patents for these products would be amortized over the expected lifetime of the products.

Which market entry mode is most appropriate for EuFa to enter North America?

A$)$ Export

B$)$ Licensing

C$)$ Joint venture

D$)$ Foreign direct investment

Which of the following branding strategies is EuFa using with the new Delicious Manna products?

A$)$ Brand consolidation

B$)$ Fighting brand

C$)$ Individual branding

D$)$ Brand extension