3.5 Firms
In 2017, two firms in the chemical industry in China merged. This created the world’s largest chemical group with approximately US$100 billion revenue. The main aim of this integration was to control the domestic market for chemicals and fertilisers by creating a monopoly. The new firm is a multinational company (MNC) as it also produces in other countries such as Italy and Switzerland.
Explain two types of integration (merger).
Ai এর মাধ্যমে
১০ লক্ষ+ প্রশ্ন ডাটাবেজ
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উত্তর দিবে তোমার বই থেকে ও তোমার মত করে।
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The mobile (cell) phone industry is growing in Asia with more workers being employed. In March 2017, there was a merger between two mobile phone producers, both of which had relatively high fixed costs. This merger created one of the largest mobile phone firms and moved the Asian market further from perfect competition and closer to monopoly. It was expected that profits in the industry would increase as a result of the merger.
Discuss whether or not a merger will increase profits.
The largest airline in Pakistan was originally formed as a result of a merger between a state- owned airline and a private airline. In April 2016, the Pakistan government made this merged firm a public limited company. This was hoped to improve the productivity of this loss-making airline and also improve the overall economy of Pakistan.
Discuss whether or not a merger might make it easier for a firm to achieve its goals.
Angola is an African country without a stock exchange. In contrast, South Africa has the most active stock exchange in Africa. Firms in South Africa are also much larger than firms in Angola and South African firms undertake more borrowing from commercial banks. Both countries do, however, have a low saving rate which could be increased if the rate of interest was raised.
Discuss whether or not an economy will benefit from its firms getting larger.
Discuss whether or not commercial banks in Morocco would benefit from further mergers.
Refer to the source material in your answers.