One advantage of acquisitions as a means of entering foreign markets is that

Question

BlackTom AI · Accepted Answer

Acquisitions are quick to execute and help firms to rapidly build their presence in the target foreign market.

Relevant concepts: An acquisition is the purchase of an existing company (or controlling interest) in a target market. Key advantages commonly discussed in international business are speed of entry, immediate access to customer base, distribution channels, local management, brand recognition, and regulatory approvals that the acquired firm already holds. These contrast with greenfield investment (building a new subsidiary from scratch), which takes longer to set up.

Step-by-step reasoning:
1. Identify the main comparative modes of foreign entry: acquisition vs. greenfield. Acquisition = buy existing entity; greenfield = establish new operations.
2. Determine primary advantages of acquisition: because the buyer assumes an operating business, they inherit physical facilities, employees, contracts, supplier networks, and often market share immediately. This eliminates the time needed to recruit, build facilities, and develop local relationships.
3. Translate those inherited assets into speed: existing production, sales channels, and license permits mean the acquirer can begin serving customers almost immediately, so market presence grows rapidly.
4. Conclude that speed and rapid presence-building are thus a fundamental and reliable advantage of acquisitions.

Why the correct answer is correct: The chosen option explicitly states the speed and rapid market presence benefit, which directly follows from the nature of buying an operating firm—no need to create all elements of a new operation from the ground up.

Why other options are incorrect:
- Option 2 (easier to change culture): Cultural change is notoriously difficult in acquisitions; integrating cultures is often one of the biggest challenges, not an easier task than building a new culture in a greenfield.
- Option 3 (easier to convert operating routines of acquired units): Existing routines may be deeply embedded and resistant to change; converting or aligning them can be complex and costly, so this is not a general advantage.
- Option 4 (acquired firms often undervalued): Acquisitions frequently involve competitive bidding and premiums; being undervalued is not a reliable advantage.
- Option 5 (access to intangibles while minimizing tangible pileup): While acquisitions can grant intangible assets, they also transfer tangible assets and may require significant additional investment; this statement is imprecise and not the primary, reliable advantage.

Conclusion: The best-supported advantage is speed of execution and rapid market presence, which matches the provided correct answer.

One advantage of acquisitions as a means of entering foreign markets is that单项选择题

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