Acquiring an existing firm operating in a foreign country rather than undertaking internal development may be the least risky and cost-efficient means of overcoming entry barriers such as:

Gaining access to local distribution networks, building supplier networks, and establishing working relationships with key government officials.

Explanation:

Acquiring an existing firm operating in foreign country may be the least risky and cost effecient means of overcoming entry barrier, such as Gaining access to local distribution networks, building supplier networks, and establishing working relationships with key government officials.

As new firm in a foreign nation does not have easy entry or functioning, therefore, acquiring a local firm will help them understand local market environment, customer prefrences, building supplier´s and distribution network at ease. help to understand the local government´s policies and establishing working relationship with key government authority.

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