Question

A software company in China has decided to become a multinational enterprise (MNE). The company desires to completely own its subsidiary and requires a fast entry mode. In addition, the company wants to enter into business immediately without requiring to add a new capacity. In this scenario, which modes of entry will be most appropriate for the company?

Answer 1

Acquisition

Step-by-step explanation:

Acquisition mode of entry is a type of foreign market entry mode that offers fast, large and international expansion into a new market. This is done by a firm gaining control of another firm through the purchase of stocks or exchange of stocks. This type of strategy is usually used by multinational companies to acquire greater market power. A disadvantage of this type of entry is the high cost and integration is difficult due to different organization cultures and relationships..