Question

The antitakeover tactic, _______, is when a firm offers to buy shares of their stock from a company (or individual) planning to acquire their firm at a higher price than the unfriendly company paid for it.

A.	golden parachute

B.	poison pill

C.

greenmail

D.

scorched earth

When firms expand into global markets, they are faced with the choice of reducing costs and/or adapting to the local market. When high pressures exist to adapt locally, companies should choose a(n) __________ or __________ in order to compete in the global marketplace.

A.	global strategy; transnational strategy

B.	global strategy: multidomestic strategy

C.	international strategy; global strategy

D.

transnational strategy; multidomestic strategy

A firm can establish a wholly owned subsidiary by

A.	acquiring an existing company in the home country.

B.	keeping all of the activity offshore.

C.	licensing intellectual property.

D.	entering into a franchising agreement.

Answer 1

1) C. Greenmail

Greenmail involves buying significant numbers of shares so that the target company is forced to buyback it's shares to avoid hostile take over.

2) D. transnational strategy; multidomestic strategy

Transnational strategy is when an organization decides to operate beyond their national border, to become international or multi national organization

Multidomestic strategy involves study of the local market where they are entering , understanding it's need rather than taking universal approach. This means that they will study its local culture and will offer it's product according to these studies

3) A. Acquring an existing company in home country