An international acquisition is different from the establishment of a new subsidiary in that the MNC can immediately expand its international business since the target is already in place.

Question

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An international acquisition allows an MNC to acquire an already established business in a foreign country, which can immediately expand its international business. On the other hand, establishing a new subsidiary requires building a new business entity from scratch, which takes time and resources.

An International Acquisition Is Different from the Establishment of a New