International business: acquiring existing companies
Put your answer to the question assigned to you below in the Discussion Conference in the Discussion section of the course. When answering the question, state the question number and the page number of the question you are answering. Answer the question, add additional information about the subject, and provide example(s) to get 5 points. Read the example answers in Announcements on our course page. Properly cite your sources. Read ch. 1&2 10.(pg.64) Why has most foreign direct investments gone into aquiring existing companies rather than establishing new ones? Book-International Business 12th edition- The challenge of global competition, Irwin/McGraw
Name:University:Course:Tutor:Date:International businessWhy have most foreign direct investments gone into acquiring existing companies rather than establishing new ones?Multinational corporations are a welcome source of foreign direct investment to many countries. When multinationals are seeking to invest in new markets, they may choose to do so through mergers with existing indigenous establishment or take over such establishments through direct acquisitions (Ball 64). This is a means for accessing new markets in foreign countries by multinational corporations. The term used to refer to such entry into new markets is foreign direct inv...