An MNC uses which international strategy for entering a foreign market by purchasing another company already operating in the area developing synergistic benefits gained from acquiring strong complementary product lines and a good distribution network?
A) licensing
B) joint ventures
C) production sharing
D) exporting
E) acquisitions

Question

Quizplus · Accepted Answer

Acquisitions involve purchasing another company already operating in the foreign market. This strategy helps the MNC to quickly gain access to a strong complementary product line and an established distribution network, leading to synergistic benefits. This can be a more efficient way to enter a market compared to starting from scratch.

An MNC Uses Which International Strategy for Entering a Foreign