Business Mba
Essay by Woxman • October 16, 2011 • Essay • 323 Words (2 Pages) • 1,547 Views
Global Financial Management
Yvonne Steph Williams
Unit 1 Discussion Board
October 16, 2011
Dr. Wayne Hollman
After careful review, in the author option JEL industries would be a better selection for the United States Acme acquisition. The reason, JEL is located in the European Union and uses the Euro currency. The Euro is very strong and stable which will reduce any exchange rate risks because the Euro has no other currencies challenges.
In addition, being a part of the European Union trading system will prove to be an advantage towards a more stabilized economy and will have an adverse reaction towards positive political factors and an interactive cooperation between the other members of the European nations.
Another advantage would be if a neighboring country became distant from a large union such as the European Union, the other member countries could capture the distant country by suing restrictions and competitive policies. In addition, being a part of such a large conglomerate will allow companies to take advantage of the special agreements, benefits, and treaties and will allow globally long-term stability in regards to macroeconomic factors. Another advantage, the acquisition of JEL,
Located in the European Union, Acme will be in the position to take full advantage and have access to the market of all the other Europeans Unions without any restrictions on the trade practices such as duties and other import restrictions.
The disadvantages of selecting JEL industries, there could be a shift and change in the global economic, the European Union changes, which could ultimately affect the domestic environment among the member nation, which could affect trade transactions among other nations.
Another disadvantage, the acquisition will hold Acme accountable, adhering to the laws and regulations of the EU while conducting business avoiding all fines, In addition, comply with these regulations in order to avoid any fines.
The author decision to select JEL industries based on the knowledge will not changed mainly because of the benefits
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