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.