Question

Which of the following is NOT an advantage of international acquisitions over the establishment of a new subsidiary? a. The firm can immediately expand its international business. b. An international acquisition typically generates quicker cash flows than the establishment of a new subsidiary. c. International acquisitions are generally cheaper than the establishment of a new subsidiary. d. An international acquisition typically generates larger cash flows than the establishment of a new subsidiary. e. All of these are advantages of international acquisitions.

Answer 1

Answer:

c. International acquisitions are generally cheaper than the establishment of a new subsidiary.

Explanation:

• An international acquisition is a company that buys and takes control of the other company and business is pwned and consolidated in to with other entities and despite the improvement in the performance of the mergers.  

• The acquisitions often disappoint the companies that need to have a stable decision-making process and the problem of the fragmentation and integration are most complexes that needed to be handled thus acquisitions are not cheap er to establish.