Acquisitions are an example of the _____ governance option for firms pursuing international strategies

Business Dec 27, 2020

Acquisitions are an example of the _____ governance option for firms pursuing international strategies.

A) market

B) hierarchical

C) corporate

D) intermediate market

Expert Solution

The correct option is _ D) Intermediate market._

Corporate governance options are available when a firm goes global. While pursuing an international strategy, severe options come along the way with constraints. Acquisitions are a suitable example for intermediate market governance options in this regard.

Option A) is incorrect. This is because market governance is not suitable for acquisitions example.

Option B) is incorrect. This is because acquisitions are not related to hierarchical governance.

Option C) is incorrect. This is because corporate governance is also not suitable for acquisitions example.

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