Question : Case Study 10:
PQR Ltd. is an established company planning to expand its global operations through strategic alliances.
Question :
PQR Ltd. is considering forming strategic alliances for international expansion. Which market activity is related to this scenario?
Option 1: IPO (Initial Public Offering)
Option 2: Currency swap
Option 3: Mergers and acquisitions
Option 4: Treasury bill trading
Correct Answer: Mergers and acquisitions
Solution : The correct answer is (c) Mergers and acquisitions
Strategic alliances often involve collaborations or partnerships between companies to achieve specific business objectives, such as expanding into new markets. Mergers and acquisitions (M&A) are the appropriate market activities in this scenario. M&A can take the form of partnerships, acquisitions, or joint ventures, all of which align with the concept of strategic alliances for international expansion.