An international acquisition may be preferable to the establishment of a new subsidiary because the firm can immediately expand its international business and benefit from existing customer relationships.

Question

Quizplus · Accepted Answer

Yes, an international acquisition provides a company with an established customer base and existing business operations, which reduces the time and resources required for market entry compared to establishing a new subsidiary. Thus, it can immediately expand its international business and benefit from the acquired company's assets and expertise.

An International Acquisition May Be Preferable to the Establishment of a New