Marginal Analysis for a Win-win Case in Cross-cultural Acquisition: Wanda and AMC

Abstract

In the context of economic globalization, countries are both partners and competitors. In the early twenty-first century, China began to look at the influence of Chinese culture in other countries and issued policies to support the purchase of overseas assets by Chinese companies. Wanda Group seized the opportunity and made a fortune by acquiring AMC and selling it at a high price. The study found that this was a successful cross-border M&A case, however, a systematic analysis still exists on the explanation of why Wang did a specific thing at a specific time. Therefore, the topic of this paper is to use marginal analysis to explain Wanda's behavior in entering and exiting AMC. Ultimately, this paper concludes that marginal analysis can help firms make decisions about whether and when to do something, and the resulting marginal costs can be useful for subsequent negotiations.