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.
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