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  • Can countries benefit from having their domestic firms acquired by foreign companies?

    Forbes - 09/29/2011

    When a foreign company acquires a domestic firm, it often leads to outcries of indignation, nostalgia (€œanother of our once great companies in foreign hands€), and calls for legislation to prevent any more foreign poaching. Politicians and union leaders proclaim that the foreign owners may not be dedicated to keep up investment in the subsidiary, and that the take-over threatens national jobs and other economic interests. €œMost governments are reluctant to see their corporate treasures fall into foreign hands€, the BBC wrote in an article devoted to the topic.

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