1. To enter markets where superior profits are possible, an MNC should do which of the following?
   1. establish a subsidiary or acquire a competitor in a new market.
   2. acquire a competitor that has controlled its local market.
   3. establish a subsidiary in a market where tougher trade restrictions will adversely affect the firm's export volume.
   4. establish subsidiaries in markets whose business cycles differ from those where existing subsidiaries are based.