When an international firm makes an acquisition in a foreign market, i

QUESTION

When an international firm makes an acquisition in a foreign market, it acquires valuable intangible as well as tangible assets

Indicate whether the statement is true or false.

ANSWER

TRUE
When an international firm makes an acquisition in a foreign market, it not only acquires a set of tangible assets, such as factories, logistics systems, customer service systems, and so on, but it also acquires valuable intangible assets including a local brand name and managers’ knowledge of the business environment in that nation