When Contemplating FDI, Why Do Firms Apparently Prefer to Acquire

question 102

Multiple Choice

When contemplating FDI, why do firms apparently prefer to acquire existing assets rather than undertake greenfield investments?

• A) Greenfield investments are characterized by reduced management control.
• B) Mergers and acquisitions are preferred because most greenfield investments fail.
• C) It is easier and less risky for a firm to build strategic assets than acquire similar assets.
• D) Mergers and acquisitions are quicker to execute than greenfield investments.

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Definitions:

Baseline Data

A person’s initial response level on a test or scale.

Independent Variable

In an experiment, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Single-subject Designs

Research designs focusing on the response of an individual subject to varying conditions or treatment over time.

Internal Validity

The extent to which a study is free from systematic error or bias, allowing for the accurate attribution of causality to the variable being studied.