How Does the Acquisition of a Foreign Company Most Likely

question 70

Multiple Choice

How does the acquisition of a foreign company most likely benefit a focal firm in the foreign market?

• A) The focal firm can extend its market reach through readily available distribution networks.
• B) The MNE avoids domestic and foreign taxation, which enables the firm to invest more resources in the foreign market.
• C) Firm managers can reduce their workload by ensuring that all decision-making responsibilities are taken up by foreign managers.
• D) The firm eliminates the need to train its own employees by utilizing the workers previously hired by the foreign firm.

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Definitions:

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An assessment of where a person or family stands in societal and economic terms compared to the rest, taking into account their income, educational achievements, and professional role.

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The organized provision of medical services to individuals or a community.

Charles Spearman

A British psychologist who is best known for his work in statistics and intelligence theory, including the concept of general intelligence (g factor).

Psychologist

A professional specializing in diagnosing and treating mental, emotional, and behavioral disorders through various therapies and techniques.