Question

When expanding globally, under what conditions might it be in the best interest of the firm...

When expanding globally, under what conditions might it be in the best interest of the firm to buy an existing company in the host country? A. The firm has substantial market share in that country B. You are a direct competitor to the firm in that country C. Government regulations prevent you from entering the country any other way D. All of the above are correct

Homework Answers

Answer #1

All of the above are correct

( lf the firm has substantial market share in the country , buying an existing local company would help to expand its supply chain. When firm is a direct competitor to a firm in the host country, buying an existing company provides the company with a competitive advantage. If there are government regulations, buying the company would enable the firm to enter the market of the host country and establish itself in the new market. Thus all the answers are correct.)

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