Question

The best way to obtain foreign market entry is through

____

1. Mergers and acquisitions
2. Strategic alliance
3. Exporting
4. All of the above are possible

Answer 1

Answer is All of them above are possible. Option (D)

Let us understand Why:

We need to know what is Mergers and Acquisitons, Strategic Alliance and exporting.

Mergers and acquistion is one of the main aspects of corportate finance world. Term Mergers means two companies are joining / Consolidating and form a new company. Let's say Company A and Company B is different company and there are merging with new company named AB company there is a possibility that Company A and Company B in different country(After merger there is no A company and B company). Coming to Acquisition A company taken over B company, and name of the B company changes to A company. There is a possibility that A and B company in different company.

Strategic Alliance: This is another important aspect this is just like Joint venture but for strategic alliance leagl issues will be less. Assume that both Company A and B is a automobile company, and A has better dealer network and B has better technology. Both A and B can do strategic alliance to exchange their unique things. They will be working for one particular project or more.and there is possiblity that foreign company has technology and local company has network.

Exporting : exporting is the most common way to enter in to foreign market, all the global companies doing the same. People are exporting technology, Machines, human resource, Agri products etc.

kindly let us know if further queries on this.