International Business Essay Example | Topics and Well Written Essays - 4500 words

International Business - Essay ExampleIn short, international railway line is facing fewer constraints at present even though it faced plenty of barriers in the past. The path of inlet into overseas market by international companies is often attracted huge debates. few companies are looking for alliances with a company in the target country whereas other companies are looking for fusion and acquisition as a mode of entry strategy to expand their business to overseas countries. Even the very(prenominal) company opts for different mode of entries in different countries. For example, Wal-Mart established a business alliance with Bharti group in India as a mode of entry in India market. At the same time, they used mergers and acquisition as the mode of entry in European and South African markets. Cross border mergers and acquisitions (M&As) are a main vehicle for foreign direct Investment. Yet despite its vicenary importance, the determinants of cross-border M&As are still not wel l-understood (Brakman et al, 2008, p.1). Gaughan (2007) explained M & A as a process in which two corporations combined together to reverberate a single one. Moreover, only one corporation survives after the M & A while the merged corporation goes out of existence after the merger process (p.12). Merger and acquisition are one of the most popular business strategies in the modern business world. However, there are lots of concerns and debates astir(predicate) the success and failures of this business strategy. This is because of the fact that there are plenty of examples or so the success and failure of the M & A deals in young times. Some of the recent statistics show that the popularity of M&A as a mode of entry is decreasing in recent times. Some think the M&A rhythm method of birth control has already started to turn up. In the first three quarters of 2012, as the euro tottered and fear gripped the global economy, M&A activity worldwide was 17.4% lower than in the same peri od of 2011. Yet it surged in the fourth quarter, to the highest level of any quarter in the past four years. This is one reason to expect more mergers this year, says a report by Wachtell, Lipton, Rosen & Katz, a law firm that specializes in M&A. However, Mr Moritz suspects that some deals in late 2012 were rushed through by companies that were maladjusted about possible changes to the tax code. Most deals in 2013 will probably be fairly small, designed to strengthen or fill a cattle farm in the buyers existing operations. These are known as plug and play. Transformational megamergers grew rarer in 2012, with only four deals topping $20 billion. That was the same as in 2011, and fewer than in each of the three previous years (Mergers Shall we?, 2013). From the above statistics, it is evident that business pundits are not sure about the success and failures of M & As. To merge or not to merge, that is the question. Whether it is nobler in the mind to suffer the pains of negotiatio n & integration or to defy global trends and understand alternatives. This paper critically evaluates the arguments of the pro-merger and anti-merger schools and takes a conclusive position that global mega-mergers are a good policy to undertake in international business practice. Arguments in favor of M & A Miller (2008) pointed out that Edwin L. Miller (Author) Visit Amazons Edwin L. Miller Page Find all the books, read about the author, and more. See face results for this author Are you