Under which of the following conditions should a firm ideally choose the acquisition mode of entry?

Question

Quizplus · Accepted Answer

The acquisition mode of entry is most suitable when the industry is characterized by a steep learning or experience curve. This is because acquiring an existing firm helps the acquiring firm to gain access to the target firm's experience, knowledge, and capabilities, which would otherwise take a long time and a significant investment to develop internally. Therefore, this mode of entry is ideal for firms that want to enter new markets quickly and gain a competitive advantage over rivals. Options A, B, and D are not correct because they do not relate to the advantages of the acquisition mode of entry.

Under Which of the Following Conditions Should a Firm Ideally