Back to School Offer

Get 20% of Your First Order amount back in Reward Credits!

Get 20% of Your First Orderback in Rewards

All papers examples
Get a Free E-Book! ($50 Value)
HIRE A WRITER!
Paper Types
Disciplines
Get a Free E-Book! ($50 Value)

International Financial Market, Research Paper Example

Pages: 1

Words: 341

Research Paper

Acme has the decision to merge with one of two firms: 1) JEL- a firm based in France (a member of the EU) that also uses the Euro as the main currency;2) DBC- a firm that has headquarters in Sweden that does not use the Euro.  Although it is difficult to perform this analysis with the current tumult in the EU, I would suggest the firm merge with DBC- a firm that is based in Sweden and not in the EU.  DBC is the best decision for a number of reasons.

First, Acme does not want to acquire a firm in the current anarchy that is EU currency and economic policy.  The Euro, although at a relatively cheap level (historically) is undergoing unprecedented volatility- it may even break up over the short-term (Economist, 2011).  Acme does not want to conduct a M&A transaction in an EU country at this time- not only might the final purchase price be substantially different when closing, but also Acme would need to undergo substantial contingency planning immediately before and after the process.

The other advantages of the transaction are connected to the business environment of Sweden.  Acme will be able to access European Union countries via the same common trade and customs policy that is available in the EU, without entering the current maelstrom (Government of Sweden, 2010).  Second, Sweden boasts a stable macroeconomic environment and currency.  Sweden, although undergoing a bank crisis in the 1990s, has shored up its domestic and fiscal finances- the country boasts one of the best regional growth rates during the crisis (Statistics of Sweden, 2010).  In addition, the Krona is one of the least volatile currencies in Europe.

There is one main disadvantage to locating in Sweden: taxes. Although Sweden boasts a marginally higher tax rate than other European nations,  the fiscal soundness of the country’s finances more than make up for this fact.

References

Economist. (2011).  Costs of break-up: after the fall.  Available at: http://www.economist.com/node/21529046.

Government of Sweden.  (2009). Sweden’s trade policy.  http://www.regeringen.se/sb/d/3086/a/118563.

Statistics of Sweden. (2010). Historically high figures in 2010.  Available at: http://www.scb.se/Pages/PressRelease____310265.aspx.

Time is precious

Time is precious

don’t waste it!

Get instant essay
writing help!
Get instant essay writing help!
Plagiarism-free guarantee

Plagiarism-free
guarantee

Privacy guarantee

Privacy
guarantee

Secure checkout

Secure
checkout

Money back guarantee

Money back
guarantee

Related Research Paper Samples & Examples

Health Reasons for Abortion, Research Paper Example

Abortion remains one of the most controversial subjects in the world, as some people support that it should be freedom while others believe it is [...]

Pages: 3

Words: 720

Research Paper

Indigenous Caribbean Art, Research Paper Example

Introduction The portrayal of cultural characteristics that are important to the populations that are native to that location is a common feature of the indigenous [...]

Pages: 9

Words: 2341

Research Paper

Jean Lamarr, Research Paper Example

Introduction Different cultures have different ways of fostering creativity and imagination. However, since people might be impacted by values and norms from different cultures, artists [...]

Pages: 5

Words: 1511

Research Paper

The Oppression of Indigenous People in Layli Long Soldier’s Whereas, Research Paper Example

Introduction Colonization perpetrated the oppression of indigenous communities. Also, the struggle against cultural imperialism lay at the heart of oppression as the culture of native [...]

Pages: 7

Words: 2029

Research Paper

Reviled and Loved Prompt, Research Paper Example

Introduction The media and channels of communication are vital in passing information in a society (Lovari et al., 2020, p315-p328). The information is specifically addressed [...]

Pages: 7

Words: 1948

Research Paper

B.S in Applied Psychology, Research Paper Example

Major Description and Reasons for Its Choice My major or area of interest is Applied Psychology. This bachelor’s degree enables an individual to analyze the [...]

Pages: 2

Words: 558

Research Paper

Health Reasons for Abortion, Research Paper Example

Abortion remains one of the most controversial subjects in the world, as some people support that it should be freedom while others believe it is [...]

Pages: 3

Words: 720

Research Paper

Indigenous Caribbean Art, Research Paper Example

Introduction The portrayal of cultural characteristics that are important to the populations that are native to that location is a common feature of the indigenous [...]

Pages: 9

Words: 2341

Research Paper

Jean Lamarr, Research Paper Example

Introduction Different cultures have different ways of fostering creativity and imagination. However, since people might be impacted by values and norms from different cultures, artists [...]

Pages: 5

Words: 1511

Research Paper

The Oppression of Indigenous People in Layli Long Soldier’s Whereas, Research Paper Example

Introduction Colonization perpetrated the oppression of indigenous communities. Also, the struggle against cultural imperialism lay at the heart of oppression as the culture of native [...]

Pages: 7

Words: 2029

Research Paper

Reviled and Loved Prompt, Research Paper Example

Introduction The media and channels of communication are vital in passing information in a society (Lovari et al., 2020, p315-p328). The information is specifically addressed [...]

Pages: 7

Words: 1948

Research Paper

B.S in Applied Psychology, Research Paper Example

Major Description and Reasons for Its Choice My major or area of interest is Applied Psychology. This bachelor’s degree enables an individual to analyze the [...]

Pages: 2

Words: 558

Research Paper

Get a Free E-Book ($50 in value)

Get a Free E-Book

How To Write The Best Essay Ever!

How To Write The Best Essay Ever!