When a Company Uses Resources Accumulated in One Part of the World

question 23

Multiple Choice

When a company uses resources accumulated in one part of the world to fight a competitive battle in another, this is called:

• A) spot affluence.
• B) trigger economics.
• C) pre-sensor clearinghouse.
• D) cross-subsidization.

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Definitions:

Stockholders

Stockholders, or shareholders, are individuals or entities that own one or more shares of stock in a public or private corporation, granting them equity ownership.

Acquiring Firms

Companies that purchase a majority stake in another company to assume control of its operations and resources.

Acquisition

The process by which one company takes over another and becomes the new owner.

Synergy Value

The additional value created by combining two companies, often expected from efficiencies or enhanced market power.