1 page/≈275 words
Business & Marketing
Europeon Union businesses (Research Paper Sample)
There are different implications of running a country that is within or outside of the European Union. If you were the head of a firm based in the United States, please answer the following questions: 1.Would you seek to acquire a company within the European Union or outside of it? Why? 2.Describe the advantages and disadvantages of the choice you made. 3.Explain why an MNC may invest funds in a financial market outside its own country. 4.Explain why some financial institutions prefer to provide credit in financial markets outside their own country. source..
European Union Businesses Name: Institution: While the European Union has enjoyed relatively high political stability, as the head of a firm in the United States it would not be advisable to acquire a firm within the union (Farley, 2013). This is due to the current performance of the EURO and the general economic crisis in the region. Other than the fact that the EuropeanUnion has had a rough patch with the introduction of the Euro and the economic crisis, there is also the element of high costs of operating companies in the region. This means that companies make very limited profits (Economics help, 2013). However, it is worth mentioning that this choice of not acquiring a company within the European Union will mean that, the advantagesaccrued from region will not be enjoyed. These include; political stability, trade incentives and free trade (Globalization101, 2013). As a Multinational corporation, one of the reasons as to why they may invest overseas is looking for new markets to sell their products. In most of the cases, investing in new markets means higher returns for the companies.They may also go out in search of cheaper resources, such labour, raw materials among others. They may also choose to invest over...
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