Final Assignment 2 -The most popular way for international expansion is for a local firm to acquire

Final Assignment Name Institution Page Break Final Assignment Whether to Acquire a Company within the European Union Or Outside Of It The quest for a business to venture into international expansion is significantly dependent on the possibility of the business operations to succeed in the targeted foreign destination. Moreover, the suitability of the targeted region is a key determinant of whether the business will achieve its objectives or not. As such, it is critical to note that among the primary factors determining the success of economic integration is the ease and efficiency of capital movements and financial markets integration (Mussa, 2000). For a foreign destination to be flagged as an ideal opportunity for foreign business acquisition, the investing entity must ascertain that the region provides a favorable business environment to sustain their operations. In a leadership position in a US-based firm seeking to acquire foreign companies, I would not consider acquiring an enterprise within the European Union due to the various factors that make the region inappropriate for successful business operations. Among the primary reasons for my failure to consider acquiring any company within the European Union is the fact that the effects of the Eurozone crisis are still inevitable in the entire region, making it a hardship zone for investment purposes. Moreover, the Eurozone crisis has adversely affected the business operations through crippling the capital movements and financial markets stability, as well as the movement of goods and services across the region (Mussa, 2000). Another factor that makes the companies within the EU inappropriate foreign entities for acquisition is the impending trade finance downturn which has been evidenced by the constant cut back on credit facilities as a result of the crisis (Tran, 2012). As such, any acquisition in the region would be limited in its access to financing within the EU, thus limiting its chances of success. It is also notable that the governmental structures within the region have significantly changed, a fact that has created a ground for substantial financial uncertainties in the future, For instance, the banking system in Cyprus has...

Buy now to view the complete solution