The need for preempting competitors is particularly great in the telec

QUESTION

The need for preempting competitors is particularly great in the telecommunications market

Indicate whether the statement is true or false.

ANSWER

TRUE
In many cases firms make acquisitions to preempt their competitors. The need for preemption is particularly great in markets that are rapidly globalizing, such as telecommunications, where a combination of deregulation within nations and liberalization of regulations governing cross-border foreign direct investment has made it much easier for enterprises to enter foreign markets through acquisitions.