All of the Following Are Potential Advantages of Acquisition EXCEPT

question 49

Multiple Choice

All of the following are potential advantages of acquisition EXCEPT which one?

• A) The acquiring company can gain economies of scale.
• B) Acquisitions require little government oversight.
• C) An acquiring company may improve the efficiency of an acquired company.
• D) An industry might become more competitive after an acquisition.
• E) The acquisition may result in lower costs, leading to lower prices for consumers.

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Definitions:

Importing

The process of buying goods or services from foreign countries for sale or use in one's own country.

Global Sourcing

Global sourcing involves procuring goods or services from suppliers located in different countries around the world to take advantage of lower costs, unique capabilities, or other strategic benefits.

International Wage Gaps

The disparities in income levels for similar jobs across different countries.

Foreign Direct Investment

An investment made by a company or individual in one country in business interests in another country, in the form of establishing operations or acquiring business assets in the other country.