Question

Why do acquisitions, as a foreign market entry mode often fail? Please chose one reason.  

		There is a clash between the cultures of the acquiring and acquired firm.
		Acquisitions take a long time to execute compared to greenfield investments.
		Acquisitions are easily preempted by making greenfield investments.
		The revenue and profit stream generated by an acquisition are well known in advance.
		Losses produced by intangible assets outweigh profits from acquired tangible assets. In assessing which foreign markets to enter, companies would like to be able to make long-term plans. Which of the following countries (we have discussed in class) would represent potentially a less-desirable foreign market to enter, given the current geo-political and economic situation in the country/region? South Korea Turkey Germany Japan Romania All of the following are some of the main causes for companies to fail at exporting, except: Poor foreign market analysis executed No customization of products to foreign demands and tastes Not having a properly implemented marketing campaign Failing to understand competition in the foreign market Absence of a dedicated export director inside the firm

Answer 1

1) Why do acquisitions, as a foreign market entry mode often fail? Please chose one reason.

Answer = There is a clash between the cultures of the acquiring and acquired firm.

• Cultural barriers are the most important factor of failure of acquisitions

2) In assessing which foreign markets to enter, companies would like to be able to make long-term plans. Which of the following countries (we have discussed in class) would represent potentially a less-desirable foreign market to enter, given the current geo-political and economic situation in the country/region?

Answer = Turkey

• Turkey has long been a poor country shaken by chronic economic and financial crises

3) All of the following are some of the main causes for companies to fail at exporting, except:

?Answer = Absence of a dedicated export director inside the firm

• A director cannot do anything unless the foreign country's situation favours exports