What primarily explains why developing nations are characterized by a lower percentage of cross-border mergers and acquisitions compared to developed nations?
A) fewer target firms to acquire in developing nations
B) fierce opposition to mergers and acquisitions in developed nations
C) unwillingness of foreign companies to invest in developing nations
D) presence of import quotas in developing nations

Question

Quizplus · Accepted Answer

In the case of developing nations, only about one-third of FDI is in the form of cross-border mergers and acquisitions. The lower percentage of mergers and acquisitions may simply reflect the fact that there are fewer target firms to acquire in developing nations.

What Primarily Explains Why Developing Nations Are Characterized by a Lower