Question

The advantages of using an acquisition strategy to pursue opportunities in foreign markets include:

A. having a high level of control and speed as an entry strategy to overcome trade barriers.
B. allowing a company to achieve scalable economies.
C. eliminating the costs and risks associated with establishing a foreign business location.
D. being able to achieve variable product quality and competitive product performance.
E. being able to export goods at higher costs than rivals in those locations.

Answer 1

The correct answer is letter "A": having a high level of control and speed as an entry strategy to overcome trade barriers.

Step-by-step explanation:

An acquisition is, in general terms, the purchase of a corporation or a division of a firm. Some acquisitions are paid out in cash, while others are paid out with a combination of cash and company shares. Some are even financed by debt, which is called a leveraged buyout.

Acquisitions are often carried out by another company in a similar line of business, which uses the acquired business to improve its own operations, have complete control in the business operations, tear down entry barriers if the target company is aborad, and fasten operational processes.