Porco Rosso, an aircraft manufacturer with a strong presence in the United States, is looking to expand its market overseas. The firm currently sells its aircraft to several airlines in the United Kingdom, but now wants to establish manufacturing units there as well in order to acquire a bigger share in the European market. Hence, it plans to merge with QueenAir, a British aircraft manufacturer. Which of the following, if true, would weaken the company's decision to merge with QueenAir?
A) A competitor in the U.S. market recently went out of business.
B) There is increasing economic uncertainty in its U.S. market.
C) There is a striking difference in the organizational cultures of the two firms.
D) The preferences of airline customers in Europe and the U.S. are similar.
E) Merging with QueenAir would increase its profits considerably.
Correct Answer:
Verified
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