When should a firm choose acquisition or greenfield operation as a foreign entry mode?
What will be an ideal response?
Acquisitions and greenfield operations are foreign entry modes that require a high level of investments in terms of capital and other resources, but they also allow for a high level of control. In some instances, companies are required by the host country to form joint ventures in order to conduct business there, while some firms prefer greenfield operations (building new plants and facilities from scratch).
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Identify the advantages and disadvantages of group decision making.
What will be an ideal response?
A 2008 Cone Inc. study concluded that most social media users prefer not to interact with companies online
Indicate whether the statement is true or false
The grapevine in an organization
a. is typically no more or less accurate than other channels. b. serves no necessary purpose; thus, managers should work to eliminate it. c. passes a message in single file from person to person until it finally reaches the end of the line. d. has a single, consistent source.
The traditional payback period technique that is used in capital budgeting analyses:
A. is the simplest and oldest formal method used to evaluate capital budgeting projects. B. directly accounts for the time value of money. C. considers the discounted value of cash flows beyond the project's payback period. D. always results in maximizing the value of the firm when used to evaluate mutually exclusive projects. E. incorporates risk into the discount rate that is used to compute the payback period.