When contemplating FDI, why do firms apparently prefer to acquire existing assets rather than undertake greenfield investments?
A) Greenfield investments are characterized by reduced management control.
B) Mergers and acquisitions are preferred because most greenfield investments fail.
C) It is easier and less risky for a firm to build strategic assets than acquire similar assets.
D) Mergers and acquisitions are quicker to execute than greenfield investments.

Question

Quizplus · Accepted Answer

Mergers and acquisitions are quicker to execute than greenfield investments. This is an important consideration in the modern business world where markets evolve very rapidly.

When Contemplating FDI, Why Do Firms Apparently Prefer to Acquire