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.

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Definitions:

Operant Conditioning

An educational practice that modifies the strength of a behavior through either positive stimuli or negative feedback.

Positive Reinforcer

An incentive that, if offered following an action, enhances the chance of that action being performed again.

Conditioning Perspective

A viewpoint in psychology that focuses on learning as the primary mechanism through which behaviors are acquired and modified.

Treat

To deal with or act towards someone or something in a specified manner, often with kindness or to provide medical care.