How does the acquisition of a foreign company most likely benefit a focal firm in the foreign market?
A) The focal firm can extend its market reach through readily available distribution networks.
B) The MNE avoids domestic and foreign taxation, which enables the firm to invest more resources in the foreign market.
C) Firm managers can reduce their workload by ensuring that all decision-making responsibilities are taken up by foreign managers.
D) The firm eliminates the need to train its own employees by utilizing the workers previously hired by the foreign firm.

Question

Quizplus · Accepted Answer

Acquiring a foreign company allows the focal firm to leverage the acquired company's existing distribution networks, thereby extending its market reach more efficiently than establishing new distribution channels from scratch.

How Does the Acquisition of a Foreign Company Most Likely