The most popular way for international expansion is for a local firm to acquire foreign companies. One of the most benefits for international expansion is global distribution capability that helps expanding the market share.

There are different implications of running a company 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, providing the rationale behind your answers:

Would you seek to acquire a company within the European Union or outside of it? Why?

Describe the advantages and disadvantages of the choice you made.

Describe the advantages and disadvantages inherent in the option you did not choose.

Explain why an MNC may invest funds in a financial market outside its own country.

Explain why some financial institutions prefer to provide credit in financial markets outside their own country.

I already answered the questions. I now need an executive summary.

Thank you

There are diverse implications of running a country that is within or outside of the European Union. On the off chance that you were the head of a firm based in the United States, please answer the following inquiries: 1. Would you seek to acquire a company within the European Union or outside of it? Why? I won't seek to acquire a company within the European Union. The European Union is amidst an extreme financial emergency called the Euro zone emergency. This has created several issues in the European Union. The legislatures have changed leading to political instability and there is a solid prospect of financial uncertainty. For example, in Cyprus banks are not functioning. In the event that a company is to be acquired, its assets must be secured and it must have the capacity to carry on its operations. In EU, assets of companies and individuals are solidified. For example if a company is not allowed to draw cash from the bank the value of acquiring the company gets defeated. Similarly, if the business is not able to carry out normal financial transactions because of the European Sovereign obligation emergency, then the company cannot carry on its operations. It is advisable to avoid acquiring a company in the European Union. There are other nations where such issues don't exist. For example, a company may be acquired in Brazil where there is solid coin, a 4.1 % GDP development rate, and a sound financial framework. 2. Depict the advantages and disadvantages of the choice you made. The advantages of acquiring a company in Brazil are that it is a regional monetary power. It has natural assets, minerals, vitality, and a broad industrial base. It has stable monetary development and a solid growing local market. Brazil has been chosen because it has low inflation, tax exclusions, and solid purchaser certainty. The economy is large, there is internal development, and great infrastructure. The cons of the alternative that I have recommended are that there is a volatile political environment, the business conditions change fast, and there is a heavy bureaucracy. The other cons are that the legal framework is moderate and troublesome. The general level of education is not high and a small part of the population has advanced education. 3. Explain why a MNC may invest funds in a financial market outside its own country. A MNC may invest funds in a financial market outsize its own country to avail itself of a superior investment opportunity. The MNC may see opportunities that are more lucrative or more secure in a foreign market outside its own country. The second reason is that there may be financial emergency or moderate monetary recuperation in the nation of origin. So an unattractive economy at home may encourage the MNC to invest abroad. In addition if there are disheartening monetary factors in its own country the MNC may choose to invest in a financial market outside its country. On the off chance that the stock market at home is uncertain, if the money of the nation of origin is probably going to weaken, or the nation of origin keeps running up a tremendous budgetary deficit, the MNC may choose to invest in financial market abroad. Several MNCs select nations for investment where the local money is probably going to appreciate. Higher returns are an important factor that attracts MNC to invest in financial markets outside the nation of origin. 4. Explain why some financial institutions prefer to provide credit in financial markets outside their own country. Financial institutions prefer to provide credit in financial markets outside their own country because they get higher rates of profits than in their own country. Competition from other financial institutions and government regulations may discourage the interest rates in the financial markets in their nations. For example, the low markdown rates by the Federal Reserve in the United States discourage the interest rates including the long haul interest rates in United States. In the event that the financial institutions want to earn a higher interest rate they loan through their international branches in nations where the interest rates are higher. This lending (giving credit) brings a higher rate of interest to the financial institution. The profitability of the institution increases. From an alternate point of view if the supply of funds in the home market is high. For example, the Fed in the US guarantees that the level of liquidity among banks is high and this pushes down the rates of interest at which banks can loan in the United States. The financial institutions seek markets where the supply of funds is low. Globalization of financial markets makes it feasible for financial institutions to provide credit in such nations where the interest rate is high and the security of funds is also high. References: (1)Globalization - The Juggernaut of the 21st Century Jan-Erik Lane Ashgate Publishing, Ltd., 2013 (2)Globalization and Social Change: People and Places in a Divided World Diane Perrons Routledge, 2013 (3) The Limits of Globalization Alan Scott Routledge, 2013 1. Talk about how political hazard contrasts from country chance and in what ways political occasions in a foreign country can affect local financial operations of a MNC. Control assets: You can make utilization of Jakobsen's article on "Political hazard for multinational companies: Empirical confirmation from another dataset" recovered on April 21, 2014 from http://www.wiscnetwork.org/porto2011/papers/WISC_2011-560.pdf. Investopedia (2014). Definition of 'Political Risk'. Recovered on April 21, 2014 from http://www.investopedia.com/terms/p/politicalrisk.asp. Investopedia (2014). Definition of 'Political Risk'. Recovered on April 21, 2014 from http://www.investopedia.com/terms/c/countryrisk.asp. Direct exchangeotes: Country hazard is more extensive in degree that a political hazard. A country chance "include political hazard, exchange rate chance, monetary hazard, sovereign hazard and transfer chance, which is the danger of capital being bolted up or solidified by government action" (Investopedia, 2014). The article by Jacobsen noted these political dangers affecting MNCs from country to country: Nigeria - kidnappings and acts of sabotage coordinated against the oil industry by revolt gatherings or grievance - ridden local communities; Iran - monetary sanctions being executed by foreign states because of Tehrans purported nuclear ambitions; Burma, a military dictatorship, the actions of (often foreign-based) activists has caused serious issues for Western multinationals. Bring down income receipts and hindered development of MNCs are the most immediate impact of these political occasions. 2. Do you trust that there are financial and/or operational measures MNC can take to eliminate political hazard related to foreign investment extend? If not, in your opinion, can MNC at least minimize the political hazard? Please talk about how. Control assets: Liu and Njornson (1998) "Managing Exposure of Direct Foreign Investment to Political Risk: The Case of Food Businesses in China" recovered on April 21, 2013 from http://ageconsearch.umn.edu/bitstream/34511/1/01030359.pdf. Control discourseotes: The paper of Liu and Njornson (1998) "concentrates on how MNCs can manage the political hazard introduction, including factors, for example, social turmoil..." It also proposed the utilization of "specialized proprietary assets to generate a stream of benefits to the host country". The paper highlights an alleged "transaction cost theory" as an approach to mitigate political dangers with emphasis on "how the host country can benefit from MNCs continuing nearness". The authors proposed that "a joint wander with a host partner can create a local stakeholder with an incentive to utilize its influence to shield the DFI from political dangers". 3. What are the advantages and disadvantages of having a global appropriation capability? Do you think that the advantages are more than the disadvantages? Please talk about Direct assets: A decent material is Gregory Hamel's (2014) article entitled "Advantages and Disadvantages of a Multinational Firm" recovered on April 21, 2014 from http://smallbusiness.chron.com/advantages-disadvantages-multinational-firm-20243.html. Among the advantages said by Hamel (2014) are 1.) access to customers - MNCs are presented to "a larger pool of potential customers" , henceforth, an enormous income potentials; 2.) Access to labor - a firm that has operations in many nations can set up its generation operations in China or India to take advantage of cheap labor and then offer items in more affluent nations in North America and Europe. Hamel also noted that despite of the advantages, there are also disadvantages, for example, 1.) Laws and regulations - "multinational companies ... are subject[ed] to more laws and regulations than other companies" including labor and business laws that varies from country to country, 2.) Taxes and other expenses - "many nations force taxes called obligations or tariffs on imports and exports, making it more exorbitant to offer merchandise to purchasers in other nations". Another guide assets: Riad A. Ajiame, Karel Cool, G. Jason Goddard and Dara Khambata's (2006) book entitled "International Business: Theory and Practice 2nd edition".(See a page sample at http://books.google.com.ph/books? id=xbm8BUKGu7MC&printsec=frontcover#v=onepage&q&f=false) Aya S. Chacar, Sokol Celo, and Yannick Thams (2010) "The Performance of Multinational Affiliates versus Domestic Firms" recovered on April 21, 2013 from http://www.na-businesspress.com/JMPP/ChacarWeb.pdf. The authors (Ajiame, et al. , 2006) demonstrated that any disadvantages can be exceeded if MNCs will concentrate on the application of "innovation that outcomes in the creation of effective, cutting edge, low-estimated items and administrations that command a large market following". Typical examples are in PCs (Microsoft), aviation (Boeing), and chemical (DuPont). 4. Do you trust that foreign investments exposing multinational corporation to political and monetary dangers? Please explain the rationale behind your dialog. Manage assets: Nathan M. Jensen's "Firm Level Responses to Political Risk" recovered on April 21, 2014 from http://www.isnie.org/ISNIE06/Papers06/07.2/jensen.pdf. MNNs cannot be viewed as powerful and solid on the off chance that it is not subjected to political and monetary dangers. Jensen's paper emphasized that "multinationals have numerous tools to manage dangers " and that they can tailor their operations to both minimize political dangers and to maximize political influence". In the final analysis, despite everything we have to see a multinational corporation that succeeded in foreign markets without undergoing through a progression of political and monetary dangers