The most popular way for international expansion is for a local firm to acquire foreign companies. One of the most benefits for international expansion is global distribution capability that helps expanding the market share.
There are different implications of running a company that is within or outside of the European Union. If you were the head of a firm based in the United States, please answer the following questions, providing the rationale behind your answers:
- Would you seek to acquire a company within the European Union or outside of it? Why?
- Describe the advantages and disadvantages of the choice you made.
- Describe the advantages and disadvantages inherent in the option you did not choose.
- Explain why an MNC may invest funds in a financial market outside its own country.
- Explain why some financial institutions prefer to provide credit in financial markets outside their own country.