A case on Mergers & Acquisitions Assignment Example | Topics and Well Written Essays - 2750 words

A case on Mergers & Acquisitions - Assignment Example me concepts such as FDI1, which is the acquisition of ownership of assets by a foreign country in another country with the intention of having direct control over manufacture, distribution and sales of a firm in the host country. Foreign investment basically means the gap in a country’s requirement for investment and its savings rate (Yuang, 1998 p.63). The host country for FDI stands to benefit in a number of ways in terms of capital formation, export diversification, technology import, management system improvement, and enhanced market competition, infrastructure development to support economic activity, financial sector growth and markets development (OECD, 2001 p.13). FDI is a powerful engine in helping to achieve country objectives such as those about poverty reduction, development and international integration, and it is perceived to be an international investment route that most developed economies have embraced. Low income countries in Africa, for example, have not taken this advantage and are thus being excluded from the globalization benefits of FDI. This research paper seeks to explain general aspects of international trade and economic blocs as well as critically evaluate the economic environment for FDI in the United Arab Emirates focusing on business risk for a firm keen on investing in UAE and considering key aspects of the international business environment such as culture, ethical practices, legal systems, purchasing power, income, consumption patterns, taxes, infrastructure, economic prospects and stability in general among others. Picking on a specific product or service, the paper will explain distribution and marketing strategies and provide guidance on the extent to which the firm’s performance may be put at risk based on last five years. International trade deals with the dynamics around movement of goods and services including intellectual property across country borders and it affects not only a country’s economic, social and