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Acquisition talks of Acme with JEL and DBC

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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.

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.

1. Describe the advantages and disadvantages of the choice you made.
2. Would your decision change if the company you acquired primarily sold its products within all countries in Europe? Why or why not?
3. 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?

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Solution Summary

This solution discusses why the student should choose JEL Industries over DBC Industries in 522 words.

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I would have chosen JEL industries.

The main advantage of choosing 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
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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