Question: The most popular way for international expansion is for a local firm to acquire foreign companies. One of the most benefits for international expansion is global distribution capability that helps expanding the market share.

There are different implications of running a company that is within or outside of the European Union. If you were the head of a firm based in the United States, please answer the following questions, providing the rationale behind your answers:

1. Would you seek to acquire a company within the European Union or outside of it? Why?

2 .Describe the advantages and disadvantages of the choice you made.

3 .Describe the advantages and disadvantages inherent in the option you did not choose.

4. Explain why an MNC may invest funds in a financial market outside its own country.

5. Explain why some financial institutions prefer to provide credit in financial markets outside their own country.