When Contemplating FDI,why Do Firms Apparently Prefer to Acquire Existing

question 20

Essay

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

---

Definitions:

Journalize

Recording financial transactions in the appropriate book of accounts, ensuring they are officially documented.

Replenishment

The process of filling up or restocking inventory or supplies to maintain required levels.

Petty Cash Fund

A small amount of cash kept on hand for minor, impromptu expenses.

Journal Entry

A record in accounting that represents a transaction and its effects on accounts, usually including a debit and credit.