Which of the Following Is NOT a Potential Advantage to a Cross-Border

question 46

Multiple Choice

Which of the following is NOT a potential advantage to a cross-border acquisition compared to a Greenfield investment?

• A) Market imperfections may under-price local assets and allow the purchase of assets at significant discount.
• B) Cross-border acquisitions take longer, thus allowing the firm a better understanding of the local market before attempting sales.
• C) Acquisitions may be a cost-effective way of gaining competitive advantages such as technology or brand names.
• D) All of the above are advantages of acquisition over green field investment.

---

Definitions:

Capsaicin

A chemical compound found in chili peppers that is responsible for their pungent flavor and spicy heat, also used therapeutically for its pain-relieving properties.

Vestibular System

A complex system located within the inner ear that helps maintain balance and spatial orientation.

Weightlessness

The condition experienced in free-fall, where an object or person is not subjected to perceivable gravitational force.

Naloxone

A medication used to block the effects of opioids, especially in overdose situations.