Which of the following is an advantage of acquisitions as a means of entering foreign markets?
Reply
Answers
One advantage of acquisitions as a means of entering foreign markets is that acquiring a foreign business instantly gives a firm access to that market. Unlike starting from scratch, which can take years, an acquisition provides the firm with an existing customer base, a distribution network, a knowledgeable workforce, and a well-established brand. Therefore, the firm can begin selling its goods or services in the targeted foreign market much faster than if it had started from the ground up.