Cross-Border Acquisitions Are Becoming More Popular Because They Allow the Acquiring

question 22

Multiple Choice

Cross-border acquisitions are becoming more popular because they allow the acquiring firm to:

• A) market a broader range of products and negotiate better contracts with distributors.
• B) increase profits,better serve customers,and gain market control.
• C) overcome barriers to entering a new market while giving that firm more control over foreign operations when compared to the control offered by alliances.
• D) exploit resources in the acquired firm,gain new technical knowledge,and access new sources of capital.

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Definitions:

Monopoly Power

The ability of a firm to set or influence prices within a market because it is the sole supplier of a product or service.

Tacit Collusion

An unspoken, implicit agreement among competitors to avoid certain competitive behaviors, like price undercutting, to maintain market stability or prices.

Gardeners

Individuals or businesses specialized in the practice of growing and maintaining plants and lawns for aesthetic and functional purposes.

Product Differentiation

The technique of making a product or service stand out in the market to make it more appealing to a specific target demographic.