SOCIO-ECONOMIC DEVELOPMENT CHALLENGES BY APPLYING CROSS-BORDER MERGERS AND ACQUISITIONS
SOCIO-ECONOMIC DEVELOPMENT CHALLENGES BY APPLYING CROSS-BORDER MERGERS AND ACQUISITIONS

Summary/Abstract: During the last three decades there has been a significant business globalization. The reason for this is searching for new sources of competitive advantage, market deregulation, the pace of change at the global level, the processes of transition and privatization, restructuring, strategic intent to meet the needs of a greater number of consumers around the world and others. In such a constellation of relations, the importance got an external method of growth companies or business combinations - mergers and acquisitions. How did the increase in the volume of implemented business integration at the national level, such as at the international level cross-border merger, acquisition and takeover of enterprises, as a form of internationalization, has experienced expansion and led to an increase in the share of mergers and acquisitions as a form of foreign direct investment. Through mergers and acquisitions are expected to enterprises correct errors and eliminate parallelism in the way of doing business in the previous period. On the other hand, it is necessary that at the macro level balance between a large (giant) company and the existence of small (individual) business, because both types of enterprises can contribute to the promotion of economic activities. Effective and efficient national economic policy, with an adequate legal framework, and a strategy that promotes competition, innovation, infrastructure development, human capital and a proactive and interactive management, which provide growth companies through the application of business combination, result in the creation of competitive advantage at the national level. Companies from certain branches which are, respecting the principles of market economy, through mergers and acquisitions generated a competitive advantage in the domestic market, it can, through exports and foreign direct investment, of which the highest value representing the cross-border integration, achieved at the international level. The consequence of this is to improve the relative position of the country compared to other countries, and competitive advantage of the national economy at the international level. The state is to the benefit of improving the position of the company on an international scale translate into improving its economic and political situation and the situation of its population, and other components of the community.

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