Multiple Choice
What is the main reason why formal institutions limit alliances and acquisitions in the areas of formal market entry modes?
A) Many governments discourage acquisitions in order to establish local-only subsidiaries.
B) The liability of foreignness is guaranteed to make the alliances or acquisitions fail.
C) The governments are unable to tax acquisitions by foreign firms.
D) The institutions do not limit the firms in regards to entry modes.
Correct Answer:
Verified
Correct Answer:
Verified
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Q22: Acquisitions are more common than mergers.
Q23: Formal government policies regarding entry mode requirements
Q25: Explain how institutions affect alliances and acquisitions.
Q26: The main decision made during the first
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Q29: Many firms establish alliances with competitors.