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This study examines the factors influencing the multinational enterprises' choice between the takeover of already existing firms and investments in new ventures as a means of entering a foreign market. The results suggest that the degree of industrial diversification of the parent company and the host country's per capita income seems to have a positive inflUience on the propensity for takeovers. This propensity appears to be negatively related to the rate of growth of industrial production in the industry entered. Further, we found that the more recent the entry into a foreign market, the greater the probability for choosing acquisition.
Mario Zeján (Thu,) studied this question.