Failures of Cross Border Mega Mergers Research Paper

Failures of Cross Border Mega Mergers - Research study ExampleAccording to Ghemawat and Ghadar (2000), global imminglers are made for a completely misguided and rail at reason. I support the arguments that the two authors advanced in their article, dubious logic of global mega-mergers. Nothing more explains the wrong reasoning behind the mergers except the levels of their failures. There much that should, therefore, guide world-wide businesses while considering an international merger. This physical composition provides illustrations to support my position on this matter. Failures in cross brink mega-mergers Ghemawat and Ghadar (2000) argues that the wisdom of the winner takes it all in globalization and mega-mergers is misplaced and has no empirical evidence to support it. The craze for globalization has had no operative impact on the financial strengths and growth of a given company. To them, there is a need for executives to condition pursuing the biases that have led the m to make mega-mergers and cross border deals. Globalizations have different facets, which are more economically viable as opposed to needless expansion. Cross border mergers are viewed by coronation analysts as a way of making entries into a foreign market, and several reasons explain the high twist of cross border mega-mergers around the globe. However, the high number of failures and low business experienced after international mergers strengthen the stand taken by Ghemawat and Ghadar (2000). The significant number of cross border mega failure has resulted in increased studies to ascertain whether the craze for acquisition and mergers is outplaced. Ghemawat and Ghadar (2000) are of the view that the increased number of crossed border mergers and acquisitions are a waste of resources and time to the companies as they are bound to fail. The unconscious process of expansion into naked borders and foreign lands has a number of economic parts that need to be put into consideratio n. These include the foreign cash of operation, the socio-cultural and political set up of the nation and the political stability therefore, any organization must factor in all these factors before making a step towards acquisition and mergers in foreign states (Sudekum, 2009). In cross border mergers, companies that have their headquarters and operation bases in different countries and regions come together and merge their operations, this results into the merger of different political and social settings that affect the operations of a business. Political, social and economic differences in the midst of countries make globalization and cross border mergers a tough undertaking. Differences in the fiscal policies also pay a number of challenges to companies operating in foreign settings. The harmonization of fiscal policies even in the European Union has not created a business environment that is economically and politically homogenous. International labor laws in organizations a lso differ significantly. This present challenges to companies operating in new economic and political setups (Hughes, 2012). In the process of finalizing cross border mergers, companies tend to overlook essential factors and this has created failures in a number of mega-mergers.