Question 13. 13. Assume that a company for which you work(ed) is in the process of culminating a deal to acquire a foreign company. The cost of the acquisition will be $25B. It will result in increased market share, an improved product for consumers, and more jobs. You serve to advise the management of the company on how to proceed with the acquisition. What advice do you think would be appropriate? (Points : 2)

Business combinations involving foreign companies is inadvisable because there are too many unknowns. The idea should be abandoned. Business combinations involving foreign companies require a considerable amount of consideration. In addition to the benefits discussed, the company must consider cultural, political, and regulatory constraints. Business combinations involving foreign companies require the same consideration as business combinations involving only domestic companies. The company must focus on financial and economic factors, as there are no other special issues related to the business combination Business combinations involving foreign companies are always successful because of the combined resources. The company should forge ahead and plan for success.