The Impact of Cross Border Mergers between the Other Countries and the Dissertation

The Impact of Cross Border Mergers between the Other Countries and the UK - Dissertation Example For instance, when the Daimler-Benz and Chrysler merged, both the companies stopped to exist and in their place DaimlerChrysler was formed. Cross border mergers are those mergers where the involved companies are set up in different countries. They comprise of a growing percentage of all the mergers. The cross border mergers are of two kinds, viz., the inward cross border mergers and the outward cross border mergers. In the inward cross border merger, the entire or parts of domestic companies are put up for sale to overseas investors, which result in inward movement of capital. In the case of an outward cross border merger, the domestic companies purchase the entire or segments of foreign companies resulting in outward flow of capital (Organisation for Economic Co-operation and Development. Economic Analysis and Statistics Division, 2003). Cross-border mergers are a very significant occurrence in the global economy. They encompass greater than 50% of all the foreign direct investment taking place in the world (Gugler & Et. Al., 2003). Companies engage in cross border merger activities for various motives, such as intensification of their market position, growing their business, getting hold of the other company’s complementary resources, and to improve their efficiency by global business reorganization among others. During the period from 1995-2001, the United Kingdom was the second target nation after the United States for cross border inward mergers. During the same period, the United Kingdom was leading acquiring country, with most number of outward overseas mergers (Organisation for Economic Co-operation and Development. Economic Analysis and Statistics Division, 2003). Cross Border Mergers continued to contribute for a major percentage of annual global foreign direct investment flows till 2007. The overseas mergers were the chief mode of foreign direct investment entry to other countries, and consequently the primary reason for the boom in the global foreign direct investment market during the phase from 2003 to 2007. However, during 2008, due to the impact of the global financial crisis, the number of cross border mergers as well as acquisitions plunged. The decline in the overall cross border mergers has had a considerable effect on the Foreign Direct Investment flows. This was because, the flow of Foreign Direct Investment are strongly interrelated with the worth of the overall overseas merger transactions. There was a major reduction in the cross border merger activities in both the manufacturing as well as the services sector from 2008 to 2009. There was also an apparent relative swing towards the non-financial services, such as the food, beverages sector, during the same period. An impressive rise in the investments in agriculture and other associated activities through cross bo rder mergers was recorded during 2007-2008 (Burksaitiene, 2010). The research objective of this study is to analyze the impacts of the 2008 financial crisis that led to a global economic depression on the field of cross border mergers as an important investment method in the United Kingdom. The study also explores the major expansion opportunities and also the difficulties relating to the cross border mergers in the United Kingdom. The study also discusses the cross border mergers in details, including the advantages of investing through

Introduction to Tourism Management Essay Example | Topics and Well Written Essays - 1500 words

Introduction to Tourism Management - Essay Example Tourists are people who Are staying in another place away from home (for a maximum period of one year), but will eventually return home; Are part of leisure and tourism related activities; Visit for temporary short periods; Are on day trips (they may not be outside overnight); Are on business trips, which may not be holidays (Rowe, Smith and Borein, 2002, 3-4). The basic components of trade and tourism are: Fig 1: The core components of tourism management (Source: Rowe, Smith and Borein, 2002, 6). B. ‘Generating’ countries: The countries from where people tend to visit other places as tourists, or countries from where there is more outbound tourism, are known as tourist-generating countries. The term refers to places where people travel away from their home countries to other international places, for leisure purposes or for conducting business. This is a form of outbound tourism (Organisation for Economic Co-operation and Development, 2010, 109). As for example, a busin ess group travelling from UK to US, for some important exhibition; or a family travelling from UK to France for a holiday. Here, UK is the generating country. C. Receiving countries: The countries to which people travel for leisure purposes or for conducting business related activities, are known as receiving countries. As for example, teams from various international destinations travelling to UK for taking part in the Olympics; or a group of Chinese tourists going to UK for sightseeing, or for visiting family and friends. D. Main tourism ‘receiving' countries of the world: Travel and Tourism is a popular worldwide activity, associated with leisure and holidays. In 2010, figures revealed that more 940 million tourists from all parts of the world entered various receiving countries, leading to an increase of 6.6% in tourism when compared to the 2009 figures, and the total receiving global tourism numbers rose to   euro  693 billion in 2010, equivalent to a 4.7% rise in   actual terms (UNWTO, 2011, 2). Owing to the 2007-08 economic downturns, international  tourism  suffered a setback, which started around June 2008. Here we find that the rise the global tourism arrivals in various receiving countries falling to 2% (especially during the summer season) (UNWTO, 2008, 1). This trend continued into 2009, when some countries were more affected than others owing to the worldwide outbreak of the H1N1 influenza virus, and in an average almost a 6% fall in tourism for the receiving countries (fall of 4% in global arrival numbers, resulting in around 880 million international tourist ‘arrivals’ in 2009) (ibid). Travel and tourism is an important segment in the economic sector of many ‘receiving’ countries, while for some ‘receiving’ countries tourism is a vital sector where the nation’s entire economy depends on the revenues earned from travel and tourism for an overall growth and development. Receiving countr ies where tourism earns large revenue  are USA, UK, Spain, France,  Italy, Greece, Egypt,  Ã‚   Israel,  Lebanon,  Thailand, Fiji, Seychelles, The Bahamas,  Maldives,  and Philippines. Tourism brings in revenue from the payments made by the tourists for  the services and goods received; it creates various job opportunities within the  hospitality and service  that function within the travel and tourism. The hospitality and se