Mergers and acquisitions differ from greenfield investments in that:
A)greenfield investments are quicker to execute than mergers and acquisitions.
B)greenfield investments are undertaken to take advantage of valuable strategic assets, such as brand loyalty and trademarks or patents, of a foreign competitor.
C)the majority of FDI flows into developed nations are in the form of greenfield investments rather than mergers and acquisitions.
D)the majority of FDI flows into developing nations are in the form of cross-border mergers and acquisitions.
E)the percentage of mergers and acquisitions is lower than greenfield investments in developing nations.

Question

Quizplus · Accepted Answer

The majority of FDI flows into developed nations are in the form of mergers and acquisitions rather than greenfield investments. This differs markedly from those into developing nations where only about one-third or less 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.

Mergers and Acquisitions Differ from Greenfield Investments in That