Would you seek to acquire a company within the European Union or outside of it? Why?
I will not seek to acquire a company within the European Union. The European Union is in the midst of a severe financial crisis called the Euro zone crisis. This has created several problems in the European Union. The governments have changed leading to political instability and there is a strong prospect of financial uncertainty. Earlier when there was no segregation of countries under common umbrella, the economic fragments were subject to greater competitive pressures and hurdles. The purpose for which European Union was created was driven by the need for a single market entity to face challenges in the highly competitive global business environment consisting not investing in EU)
By not investing in EU, my company has overcome risk that would have come along with the potential opportunity. The EU is undergoing economic hardships. While few have managed to come out of the recession, most others are still struggling.
Foreign takeover are a concern across European national governments. The general perception about being acquired by a foreign company is that the host country would take decisions that would harm their economy like downgrade acquired company 's brand, or cut down jobs. In an attempt to protect the local economic scenario government has proposed to strengthen the ability of public authorities to impose conditions on buyers when mergers are attempted (Mariniello, 2014). Whenever a foreign buyer tries for a takeover in European Union there is government intervention to protect public interest. As a result the cost of acquisition is high in European Union countries.
The Southern region of Europe is facing rising unemployment, banks are not willing to lend as a result of which fiscal conditions are worsening across the Eurozone. There is little hope that monetary policy will be able to fix Europe 's deep structural
Exchange rate: Creditors may prefer providing credit to countries whose currencies are expected to appreciate against their own ("International financial markets", n.d). It gives them greater return than what they would get with the domestic currency. International diversification: If creditors invest only in domestic market, the risk of loss is high. However if the same investment is spread across different countries, there is lesser risk. The risk in this case becomes dependent on economic conditions of countries.
Explain why some financial institutions prefer to provide credit in financial markets outside their own
With a GDP of 18.3 trillion US dollars for the EU, that is, a quantity of money and about one trillion dollars higher than the US! (Document A)! According to Document A, the European Union's highest GDP is 3.9 trillion and Germany in the lead! Germany had essentially joined the EU because for more money. There are a lot of benefits of joining the EU, maybe just to have a lot of money, or be a more powerful strong country and not to be a hovel.
Prutha Patel Mr. Lougheed Social Studies 09 February, 2016 Has Europe United? Do you believe that the European Union has united Europe? A supranational cooperation is when countries give up some control of their affairs as they work together to achieve shared goals. The European countries have used supranational cooperation to create the European Union because they want to prevent future wars, and rebuild the weak economy that had formed after the two wars. The European Union has united Europe because it has made Europe have a common currency called the Euro, has a common “government” for the European Union, and has all of the countries influenced when one country that is part of the European Union is in “trouble”.
In conclusion, the benefits of the UK’s membership in the EU outweigh the costs. The most significant benefit is the access they have to the single market as this has managed to benefit quite Access to single market is aiding this inward investment
Some reason some countries might want to join the EU are for trade acts, since that can easily increase the economy of the country and other things such as peace treaties so the country doesn't have to live in fear of being taken over easily by its enemies.
Gaughan, P. A., 2002. Mergers, Acquisitions, and Corporate restructuring. 3rd ed.New York: John Wiley & Sons, Inc.
Zemanek, H. 2010. Competitiveness within the euro area: the problem that still needs to be solved.Economic Affairs, 30 (3), pp. 42--47.
After observing many sources and data, it is noticed that not all countries in the European Union should be created equally; a country will not want
damaged credit, the companies are taking a financial risk by financing them. Considering that for
Pan-Europa should try and keep shareholders content with company performance in order to avoid a hostile takeover. Should not decrease the dividends of those shareholders to not diminish the stock price in the company. Past just financial concerns, there is strategic decisions that the company must create. Projects focused exclusively on the IRR and NPV itself into a short term course, when a long term strategy must be measured as well. The company must decide if it wants to claim the strong hold won in the recent price wars through continued low prices and volume or if they would like to diversify further and capture unchartered markets. Rather than launching a group of disparate projects set for pure monetary growth, the company should be
- The value of M&A activity in the EU is $1.3 trillion per annum- a 400% increase on 1994 - this is leading to a pan-European economy.
The Greek economy has seen a large collapse following the recent worldwide recession. The European Union has expressed concerns for the impact that Greece’s economic collapse will negatively affect other member nations. Greece and the European Union are working to reduce the Greek deficit and to contain the economic crisis to Greece.
These are very exciting times for our country, we are now part of the largest economic community the world has ever seen, opening the doors of opportunity for us, the Irish citizens, everywhere we look. Ireland's membership of the EU is seen by most to be of great benefit to the country as it will solidify the foundations of our economy as well as increase the awareness of Ireland as an investment opportunity for multi national companies; however, some will argue that the change would be detrimental to our nation in the long run.
... problems would appear to be the current economic instability of some members of the EU that cause a drain on the entire EU economic structure and the euro. It is possible for countries that are members of the EU to suffer even if they are economically stable. Another concern is the web of regulations that can confuse any business trying to penetrate a market in the EU or one of its member nations. Legal assistance would be the best option.
One of the major differences between America, Sweden, and Italy are the diverse beliefs that they each have about the best way for business to be conducted. The American representatives from Upjohn Pharmaceuticals believed that they would be able to head over to Sweden and approach the merger with a ‘command and control’ style, which implies that they went over there and automatically believed that their way was the best way and that they were in charge of the transaction, hence adopting a forceful and less considerate business tactic. This is almost completely opposite to the way that the Swedes and the Italians like to function, as their approach to the business environment is far more passive, and relationship oriented, it was therefore unlikely for the American businessmen to be successful in their methodology. This particular difference with relation to the typical business attitudes that all parties in this case bring to the table would have, and in fact did affect the way in which business was conducted. The Americans representing Upjohn automatically created a rift in the relationship with the Swedish and Italians from Pharmacia, due to the cavalier mind-set that they brought with them to Sweden, and this major difference between the cultures could easily have been avoided with a little bit of research.
Functions performed by financial intermediaries can be categorized into three functions; (1) maturity transformation, (2) risk transformation, and (3) convenience denomination. With maturity transformations, intermediaries convert short-term liabilities to long term assets. This conversion is common with banks and other institutions that provide liquidity for entrepreneurs, giving a short term debt a match with a long term loan. Rather than constantly evaluating short term loan options and rolling over the debt balance, a longer term commitment is able to be made that locks in a lower rate to benefit all parties. Additionally, intermediaries can provide risk transformation, which offer the ability to convert risky investments into relatively risk-free by lending to multiple borrowers to spread the risk. By pooling the funds of multiple investors, the intermediary – such as a mutual fund – inherently provides diversification and tolerance against a single investment producing undesirable results. Finally, convenience denomination is provided by an intermediary. With a large quantity of deposits being held at a financial intermediary, they are able to match small deposits with large loans, and larger deposit...