This study brings a fresh approach-a learning perspective-to the literature examining whether firms expand internationally through start-ups or acquisitions. Hypotheses concern how this strategic choice is influenced hy a firm's multinational diversity and product diversity. The results show that multinational diversity leads to foreign start-ups rather than acquisitions. Product diversity has a curvilinear efiect on the tendency to use start-ups. The curvilinear effect becomes weaker at higher levels of multinational diversity.