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One Advantage of Acquisitions as a Means of Entering Foreign

Question 86

Multiple Choice

One advantage of acquisitions as a means of entering foreign markets is that


A) they are quick to execute and help firms to rapidly build their presence in the target foreign market.
B) it is much easier to change the culture of an existing organization than build a new organization.
C) it is easier to convert the operating routines of acquired units than establish routines in new subsidiaries.
D) they give firms access to valuable intangible assets while minimizing a pileup of tangible assets.
E) acquired firms are often undervalued and hence assets can be purchased at minimal prices.

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