A cross-border M&A is the preferred entry mode for MNCs into new markets because it provides them with a high level of control while eliminating many of the performance and relational risks traditionally associated with strategic alliances.

Question

Quizplus · Accepted Answer

Cross-border M&A allows MNCs to have a higher level of control over the operations in the new market as they acquire an existing business or merge with one, as compared to strategic alliances where they may have to share control with the partner. This also reduces the risk of performance and relational issues that may arise in strategic alliances, as the MNC has a more direct ownership and management of their operations in the new market.

A Cross-Border M&A Is the Preferred Entry Mode for MNCs