Case Study Essay
Please answer questions in essay format (introduction, body, and conclusion).
Case Discussion Questions:
1.Why have M&As emerged as the primary mode of foreign market entry for Chinese and Indian MNEs?
2.Drawing on the industry-based and resource-based views, outline the similarities and differences between Chinese and Indian multinational acquirers.
3.ON ETHICS: As CEO of a firm from either China or India engaging in a high-profile acquisition overseas, shareholders at home are criticizing you of “squandering” their money, and target firm management and unions—as well as host country government and the media—are resisting. Should you proceed with the acquisition or consider abandoning the deal? If you are considering abandoning the deal, under what conditions would you abandon it?
Emerging Acquirers from China and India
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Mergers and Acquisitions
Introduction
Emerging markets can be defined as countries or economies that are going through a transitional phase having the potential of becoming significant players in the global landscape. A country is considered an emerging market based on its population, GDP and its significant influence in regional and global trade and investment. The economy of emerging markets is becoming more resilient and influential in today’s global trade and investment. Mergers and acquisitions have emerged as the most preferred mode of entry to foreign markets since the merging process aids in legally consolidating two business organizations into one business entity whereas acquisition facilitates the lucrative and viable businesses in one country to acquire business organizations of another foreign country and establish a new business organization (Johanson & Vahlne, 1990).
(1,108 words)