Question

The advantages of using an acquisition strategy to pursue opportunities in foreign markets include:

Answer 1

Answer:

The correct answer is letter "A": having a high level of control and speed as an entry strategy to overcome trade barriers.

Explanation:

An acquisition is, in general terms, the purchase of a corporation or a division of a firm. Some acquisitions are paid out in cash, while others are paid out with a combination of cash and company shares. Some are even financed by debt, which is called a leveraged buyout.  

Acquisitions are often carried out by another company in a similar line of business, which uses the acquired business to improve its own operations, have complete control in the business operations, tear down entry barriers if the target company is aborad, and fasten operational processes.