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  3. Look at the statements below and at the five extracts from an article about investment and acquisitions. Which article(A, B, C,

Look at the statements below and at the five extracts from an article about investment and acquisitions. Which article(A, B, C,

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问题 Look at the statements below and at the five extracts from an article about investment and acquisitions.
Which article(A, B, C, D or E)does each statement 1—8 refer to?
For each statement 1—8, mark one letter(A, B. C, D or E)on your Answer Sheet.
You will need to use some of these letters more than once.
There is an example at the beginning, (0).

A
Whether a direct investment is made by acquisition or start-up depends, of course, on which companies are available for purchase. The large privatization programs occurring in many parts of the world have put hundreds of companies on the market, and MNEs have exploited this new opportunity to invest abroad. For example, over half the value of FDI(Foreign direct investment)in Central and Eastern Europe has come from privatization programs. There are many reasons for seeking acquisitions.
B
One concern is the difficulty of transferring some resource to a foreign operation or acquiring that resource locally for a new facility. One resource that is particularly difficult to acquire is personnel, especially if the local labor market is tight. Instead of paying higher compensation than competitors do to entice employees away from their old jobs, a company can buy an existing company, which gives to the buyer not only labor and management but also a whole organizational structure through which these personnel may interact.
C
Through marketing of mass consumer products, especially if the cost and risk of breaking in a new brand are high. Further, a company that depends substantially on local financing rather than on the transfer of capital may find it easier to gain access to local capital through an acquisition. Local capital suppliers may be more familiar with an ongoing operation than with the foreign enterprise. In addition, an existing company sometimes may be acquired through an exchange of stock, thus circumventing home-country exchange controls.
D
Acquisitions may reduce costs and risks as well as provide quicker results. A company may be able to buy facilities; particularly those of a bankrupt operation, for less than it would cost to build them at current construction costs. If an investor fears that a market does not justify added capacity, acquisition enables it to avoid the risk of depressed prices and lower unit sales per producer, which might result from new facilities. Finally, by buying a company, an investor avoids the high expenses caused by inefficiencies during the start-up period and gets an immediate cash flow rather than tying up funds during construction.
E
E. Although acquisitions offer advantages, a potential investor will not necessarily be able to realize them. Foreign investments frequently are made where there is little or no competition, so finding a company to buy may be difficult. In addition, local governments may prevent acquisitions because they fear lessening competition or market dominance by foreign enterprises. Even if acquisitions are available, they are less likely to succeed than start-up operations. One factor is that those companies that can be acquired might embody substantial problems for the investor: personnel and labor relations may be both poor and difficult to change.
Buying a bankrupt operation can make a company pay less than it would cost.
选项
答案D
解析
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