Cross-border acquisitions are typically made to
A) increase a firm's market power.
B) reduce the cost of new product development.
C) take advantage of higher education levels of labor in developed countries.
D) circumvent barriers to entry in another country.

Question

Quizplus · Accepted Answer

Cross-border acquisitions are often made to circumvent barriers to entry in another country, such as government regulations, tariffs, or cultural differences. By acquiring a local company, a foreign firm may be able to operate more easily in the new market and gain access to local resources, customers, and expertise. While increasing market power or reducing product development costs may be potential benefits of cross-border acquisitions, they are not typically the primary motivations behind such deals. Similarly, while higher education levels in developed countries may be a factor in attracting foreign investment or talent, they are not directly related to cross-border acquisitions.

Cross-Border Acquisitions Are Typically Made to