Cross-Border Mergers and Acquisitions .As opposed to a greenfield investment,a cross-border acquisition has a number of significant advantages. First,it is quicker(shortening the time required to gain a presence and facilitate competitive entry into the market). e Second,acquisition may be a cost-effective way of gaining competitive advantages such as technology,brand names, and/or logistic/distribution capabilities while eliminating a local competitor. Third,specific to cross-border acquisitions,international economic,political,and foreign exchange conditions may result in market imperfections,allowing target firms to be undervalued. Copyright 2007 Pearson Addison-Wesley.All rights reserved. 19-11Copyright © 2007 Pearson Addison-Wesley. All rights reserved. 19-11 Cross-Border Mergers and Acquisitions • As opposed to a greenfield investment, a cross-border acquisition has a number of significant advantages. • First, it is quicker (shortening the time required to gain a presence and facilitate competitive entry into the market). • Second, acquisition may be a cost-effective way of gaining competitive advantages such as technology, brand names, and/or logistic/distribution capabilities while eliminating a local competitor. • Third, specific to cross-border acquisitions, international economic, political, and foreign exchange conditions may result in market imperfections, allowing target firms to be undervalued