Homework SourseDescribe the formation process of crossborder mergers acquis
Describe the formation process of cross-border mergers, acquisitions, and international joint ventures. What are the major differences?
Book used in this course is, International Human resources management(6th ed)Dowling, Festing and Engle.
Solution
Mergers Acquisition and Joint Venture :
Mergers :
Defination : When 2 companies have an agreement to integrate their resources and enjoy the abilities on equal basis to have more strong competitive advantages.
Advantages of Mergers :
Disadvantages of Mergers :
Acquisition:
Defination : When one company buys another company and takes all its reources and uses for its own competitive advantages .
Advantages of Acquisition :
Disadvantages of Acquisition :
Joint Ventures :
Defination : Its a co-operation between 2 or more companies agree to share a specific resource and enjoy the profits or loss and control over that resources for a period of time.
Advantages of Joint Venture :
Disadvantages of Joint Ventures:
Diffrence between Mergers , Acquisition and Joint Ventures.
| Topic of Difference | Mergers | Acquisition | Joint Ventures |
| Time span | Life time mutual gains and Understanding. | Takes overs the other company For life time | Temporary timely Basis |
| Authority | Both companies enjoy equal roles and responsibilities | One company Takes over the other company.One company plays the Boss role | Both Companies share equally the specified resource . Known as C0-Ventures |
| Sharing of profits | Both share the risks and profits equally | Only One company enjoys the profits | Both Companies enjoy the profits on only the specified resource. |
