Which of the following is NOT a potential advantage to a cross-border acquisition compared to a Greenfield investment?
A) Market imperfections may under-price local assets and allow the purchase of assets at significant discount.
B) Cross-border acquisitions take longer, thus allowing the firm a better understanding of the local market before attempting sales.
C) Acquisitions may be a cost-effective way of gaining competitive advantages such as technology or brand names.
D) All of the above are advantages of acquisition over green field investment.

Question

Quizplus · Accepted Answer

Cross-border acquisitions usually take less time to establish operations, as the firm is acquiring already-existing infrastructure and resources. Thus, option B is not a potential advantage of cross-border acquisition.

Which of the Following Is NOT a Potential Advantage to a Cross-Border