Purchase Solution

Acquisition

Not what you're looking for?

Ask Custom Question

Acme has been in acquisition talks with two different European firms. JEL Industries is headquartered in a country that is part of the European Union while DBC Industries is headquartered in a European country that does not belong to the Union and does not use the Euro as their primary currency.

1. Based only on the knowledge of whether or not the firm is located in a country within or outside of the European Union, recommend one of the organizations and explain why you selected that organization. In your response be sure to describe the implications of running a business in a country that is within or outside of the European Union.

2. Describe the advantages and disadvantages of the choice you made.

3. Would your decision change if the company you acquired primarily sold its products within all countries in Europe? Why or why not?

4. Would your decision change if the company you acquired primarily exported its products to Far East nations and the United States? Why or why not?

Purchase this Solution
Solution Summary

Acme has been in acquisition talks with two different European firms. JEL Industries is headquartered in a country that is part of the European Union while DBC Industries is headquartered in a European country that does not belong to the Union and does not use the Euro as their primary currency.

Solution Preview

I would have chosen JEL industries.

The main advantage of chosing JEL is that it is located in a country which is part of the European Union and using Euro as its currency. There are many advantages in being part of a large trading block like European Union. Some of the key benefits include:

1) Being part of a large trading bloc allows a company to take advantage of special treaties, agreements and benefits. Trading blocs are formed for overall development of the member nations and region via increase trade cooperation, promoting free trade between member nations and taking advantage of each other's competitive and comparative advantage.

2) More stabilization of economic and political factors.
3) Greater cooperation among member nations due to cohesive ...

Solution provided by:
Sandeep Bardia, MBA
Education
  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
Recent Feedback
  • "Thank you. "
  • "Thank you"
  • "Thank you. I got 20/20 last week for my discussion you help me out with."
  • "Thank you. Great Job. "
  • "Thank you. Great Job. "
Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Understanding Management

This quiz will help you understand the dimensions of employee diversity as well as how to manage a culturally diverse workforce.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

Accounting: Statement of Cash flows

This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.

Income Streams

In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.

View More Free Quizzes
Related BrainMass Solutions

  • DoD Acquisition System: Structured, Regulated and Robust

    517185 Acquisition System What would necessitate the DoD to have a structured, regulated, and robust acquisition system?

  • How do accounting, tax and legal factors affect an M&A strategy?

    Relevance of Taxation Effects in Merger & Acquisition Strategy Tax is an important factor in merger & acquisition strategy for firms.

  • Acquisition management;

    518807 Acquisition management; Is transformation or change needed in the program and acquisition management community? Why? Step 1 You should state that there is a change needed in the program & acquisition management community.

  • Actual Cost of Acquisition Using Company Stock

    Actual cost of acquisition = Number of shares issued for acquisition × Value per share after the acquisition Number of shares issued for acquisition= Acquisition Price ÷ Acquirer Current Share price

  • Identify a capital project for IBM

    Some of the committee members may not be in favor of the acquisition and thus, will not vote in favor of the acquisition.

  • Can a foreign acquisition target be assessed?

    The foreign acquisition target is no different. The main factor is that the foreign acquisition target will generate a form of future cash flows, regardless of the exact amount or exact profitability at the time of acquisition.

  • Acquisitions

    First, acquisition of Network Solution by VeriSign, the year is 2000. The acquisition is successful because synergies were achieved between the two companies and Network Solutions has continued to grow after acquisition.

  • Faces of Acquisition Planning

    This is the most important phase of the acquisition process.

  • Acquisition Management and the Department of Defense

    511713 Acquisition Management and the Department of Defense What do you think Acquisition Management is and what are your impressions of how it is done in Department of Defense?

  • Acquisition Authority Chain

    520013 Acquisition Authority Chain 1. Explain both the military and civilian Acquisition Authority Chain. What role does the Undersecretary of Defense for Acquisition, Technology, and Logistics fill? 2.

View More Related Solutions