The telecommunications sector in a former socialist country has just been deregulated and thrown open for FDI.Kinetix Telecom wants to enter this market rapidly with a fully owned subsidiary in order to preempt competition and to reap long-term,first mover advantages.Which of the following would be the most appropriate mode for this purpose?

Question

Quizplus · Accepted Answer

In many cases firms make acquisitions to preempt their competitors.The need for preemption is particularly great in markets that are rapidly globalizing,such as telecommunications,where a combination of deregulation within nations and liberalization of regulations governing cross-border foreign direct investment has made it much easier for enterprises to enter foreign markets through acquisitions.

The Telecommunications Sector in a Former Socialist Country Has Just