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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Case-5

Case-5

Q 1. What are the advantages of international M&As compared to other equity-based foreign market entry modes (such as greenfield ventures or joint ventures)? 2. Why have M&As emerged as the primary mode of foreign market entry for Chinese and Indian MNCs? 3. From an institution-based and resource-based view, what are the similarities and differences between Chinese and Indian multinational acquirers? 4. From an institution-based and resource-based view, why do you believe Indian multinational acquirers are more successful than their Chinese counterparts?

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Answer: It is not easy to succeed in an unfamiliar environment. There could be different modes to enter into a foreign market. Equity mode can be defined as a mode of entering foreign markets through joint ventures and/or wholly owned subsidiaries that indicates a relatively larger, harder-to-reverse commitment. On the other hand, non-equity modes include exports and contractual agreements, and tend to reflect relatively smaller commitments to overseas markets. M&A is a kind of strategic alliance. It is a voluntary agreement of cooperation between firms.