GLOB (U4_RPLx2)

 The purpose of this report is to introduce the idea of possibly operating a company that is in or out of the European Union. This decision is to not be taken lightly as there are many aspects that must be considered for a company to decide the value of an international move of that caliber. Depending on whether your company operates domestically or internationally there are several considerations that must be taken into account. The pros and cons of each must also be taken into account.

The process of understanding the considerations and methods involved with these types of actions requires quite a bit. The first thing I will do is review several scholarly articles that provide a better understanding of the process to make these kinds of moves. The main thing will involve researching other companies that have previously made the move from operating domestically to internationally. Next is to review the organizations that specifically operate within the European Union and some that operate outside of it and review the benefits of each.

The main discussions of the report will cover all the findings of pros and cons between operating internationally versus domestically, the benefits to operating within or outside the European Union, and any drawbacks to either. Also covered will be some examples of other companies that began as a domestically operated companies and then expanded internationally. The report will quickly review of the pros and cons that some of the companies experienced after begin their international operations and if there were any large drawbacks.

References

Editorial Board. (2015). Global Financial Management. [American Intercontinental University]. Retrieved from https://aiu.vitalsource.com/#/books/9781943926008/

   Executive Summary 

When a U.S based company decides to expand its business to the international market there are many things the company should consider (advantages and disadvantages). There are many things that could make being part of the EU look very appealing to a company. The obvious is having another market to sale your products or services. Another is the international market is more tax friendly. What I mean by this is a lot of the EU members has a tax level that is below 4%.  This is very appealing because the tax level for a small business in the U.S is 19.8% so you can only imagine what it would be for a big corporation. There are also many disadvantages as well. For example, the EU has been known to favor larger countries. Everyone’s input is heard but the larger countries are the ones who input is placed into action. 

            There are many reasons a MNC may invest funds in a financial market outside its own country. For example, another country may have more favorable economic conditions. There are also infinite reasons why financial institutions prefer to provide credit in financial markets outside their own country. An example of this is the company will obtain a higher rate of return. 

Conclusion 

            While there are numerous things to consider. It will be in the company’s best interest to invest in the EU. The following pages will go into more detail in why. 

THREE:

Executive Summary

Purpose

The purpose of this reports is to explore the option of a united states firm to expand internationally or to limit the market share to domestic only. There are many ways for international expansions and benefits to the organization. Alongside these benefits, there are potential pitfalls and challenges. We are exploring if we would seek to acquire a company within the European Union or outside of the EU.

Process

The process to research this topic includes reviewing many peer-reviewed literatures that provide information on the benefits and challenges of this venture. These articles will be analyzed and used to create discussion and ultimately the resulting findings to be submitted for consideration.

Findings

The findings of the articles pertaining to acquisition of global companies agreed that it benefited United States based organizations positively to expand the market share globally. The competitive advantage of having European Union companies provide the organization better trade opportunity, stable financial institutions, and supportive consumers. Reaching outside of the EU presented challenges regarding stability of governments, trade wars, financial regulation challenges, but also promoted diversification and opportunity for more raw resources.

Discussion

Findings submitted to management

I recommend for most organization seeking to acquire a company in a global market for the first time to venture in the European Union. An organization making initial moves outside their domestic market will benefit more of seeking a safer acquisition within the EU. Although there are great opportunities outside of the EU, it takes a more experienced organization to understand the consequences of a difficult acquisition and are better suited to mitigate potential issues.