Author Question: What are the advantages and disadvantages of acquisition? What will be an ideal ... (Read 57 times)

Bernana

  • Hero Member
  • *****
  • Posts: 530
What are the advantages and disadvantages of acquisition?
 
  What will be an ideal response?

Question 2

What are the three main types of exporters? What are the three main types of importers? Briefly describe the characteristics of each.
 
  What will be an ideal response?


jrpg123456

  • Sr. Member
  • ****
  • Posts: 317
Answer to Question 1

When a firm acquires another company, the firm obtains control of the acquired firm's factories, employees, technology, brand names, and distribution networks, and can continue to generate a revenue stream while the new operations are being integrated into the existing ones. Acquisition is also attractive because it maintains industry capacity, and because it allows a firm to quickly establish a presence in a foreign market. However, when a firm makes an acquisition it needs large sums of money and also gains the liabilities of the acquired firm.

Answer to Question 2

Occasional exporters are firms that have filled unsolicited orders from foreign buyers but passively, if at all, investigate international trade options. A regular exporter aggressively pursues export sales and has extensive experience with its practicalities, complexities, and technicalities. A non-exporter commands little to no knowledge about exporting and often professes no intention, now or in the future, to engage international trade. An input optimizer is an importer that uses foreign sourcing to optimize, in terms of price or quality, the inputs fed into a supply chain. An opportunistic importer looks for products around the world that it can import and profitably sell to local citizens. An arbitrageur looks to foreign sourcing to get the highest-quality products at the lowest possible price.



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question

jrpg123456

  • Sr. Member
  • ****
  • Posts: 317

 

Did you know?

For pediatric patients, intravenous fluids are the most commonly cited products involved in medication errors that are reported to the USP.

Did you know?

Many supplement containers do not even contain what their labels say. There are many documented reports of products containing much less, or more, that what is listed on their labels. They may also contain undisclosed prescription drugs and even contaminants.

Did you know?

Atropine, along with scopolamine and hyoscyamine, is found in the Datura stramonium plant, which gives hallucinogenic effects and is also known as locoweed.

Did you know?

The familiar sounds of your heart are made by the heart's valves as they open and close.

Did you know?

Green tea is able to stop the scent of garlic or onion from causing bad breath.

For a complete list of videos, visit our video library