One Advantage of Acquisitions as a Means of Entering Foreign

question 107

Multiple Choice

One advantage of acquisitions as a means of entering foreign markets is that

• A) they are quick to execute and help firms to rapidly build their presence in the target foreign market.
• B) it is much easier to change the culture of an existing organization than build a new organization.
• C) it is easier to convert the operating routines of acquired units than establish routines in new subsidiaries.
• D) they give firms access to valuable intangible assets while minimizing a pileup of tangible assets.
• E) acquired firms are often undervalued and hence assets can be purchased at minimal prices.

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Definitions:

Joseph Stiglitz

An American economist and a professor at Columbia University, known for his work on income distribution, risk, and globalization. He is a recipient of the Nobel Memorial Prize in Economic Sciences.

Nobel Prize

International awards given annually in several categories (e.g., peace, literature, physics) to recognize significant contributions or achievements.

IMF

The International Monetary Fund, an organization aimed at fostering global monetary cooperation, securing financial stability, and facilitating international trade.

Self-sufficient

The ability of an individual, household, or community to provide for all their essential needs without relying on external resources.