Business acquisitions are among the most important strategic Essay

Business acquisitions are among the nigh important strategic investment decisions - Essay ExampleThe location of businesses in other countries, either in the form of greenfield FDIs, crossborder M&As or other forms of direct investment, entails a set of challenges and risks which impact on the business that seeks to gain entry into another country. One of this is the risk associated with currency exchange rates, which will be discussed in the succeeding section of this report. At this point, more attention shall be devoted to discussing the other sources of shaping risk.Economic nationalism. In a report by the Economist Intelligence Unite (Chance, 2006), certain events the author chose to call backlash after decades of liberalisation and openness to FEI and crossborder M&As (more pronounced against M&As). recent resurgence in protectionism against FDIs and M&As, for instance, is seen in the attempt to block the acquisition by Lenovo (China) of the personal data processor (PC) di vision of IBM (US), and the takeover bid by Mittal Steel (Netherlands) for Arcelor (Luxembourg). Both of these deals, despite the attempts to prevent them, were consummated. Some deals, however, failed because they were successfully blocked by the local elements CNOOC (China) of Unocal (US) Dubai Ports World of P&O Steam Navigation Company (UK), and Pepsi (US) of Danone (France). merchant ship some of these cases is the negative sentiment with which developed countries perceive takeover bids by companies in emerging markets, because of the cast (not necessarily justified) that these little-developed countries were more prone to undesirable behaviour such as poor standards of governance and less socially responsible behaviour. The shock of seeing Chinese and Asian companies, for instance, take control of prominent sign names, acquire technology, or securing natural resources has prompted a German politician to compare such investors to the biblical abuse of locusts (Chance,