Canadian Office Furniture Manufacturing Ltd (COFM) was trying to enter the Australian market, but without...

Comprehensive and Detailed Explanation:

By acquiring an Australian office furniture manufacturer, COFM can:

Access the Restricted Local Market:Acquisition allows COFM to operate as a local entity, thereby overcoming barriers to entry and benefiting from any local government support available to domestic manufacturers.

Improve Knowledge of the Local Market:The acquired company brings with it an understanding of local customer preferences, regulatory requirements, and market dynamics, which is invaluable for successful operations.

However, the acquisition does not remove government support for other local manufacturers, nor does it necessarily decrease competition.