International Food and Agribusiness Management Association

Question: Describe about the International Food and Agribusiness Management Association? Answer: Introduction The study is based on the article International Mergers and Acquisitions: Past, Present, and Future by Ghauri and Buckley. The main purpose of this research study is to evaluate the change in merger and acquisitions in the international market for the past decade. The issues discussed in this article are the valuation and motives at the pre-merger stage and integrating and performance is evaluating at the post-merger stage. The main reasons for the motives of the international MA are to achieve economies of the scale either by acquiring of one company by another or by merging two companies. The authors while writing this article used several relevant sources like books, journals, newspaper articles, etc (Karhen.home.xs4all.nl, 2015). Research Questions The main research questions discussed in this article are- Why MA activity experiences growth as well as downfall (merger waves)? What are the motives of international MA? Is MA a right choice for a company? What are the tactics and evaluation of MA? What are the impact of MA on the companys strategies and the society? (Czinkota, Ronkainen Moffett, 2011) Literature Framework In the article, the authors firstly give a brief overview on MA and the way it is used by different companies. Then the three types of MA, horizontal, vertical and conglomerate MA is defined. The authors further explain the growth as well as the downfall of the MA activity from 1898 to 2000 in the US industry. Then the authors explain the different motives for the MAQs. In this part, the authors elaborate the methods of takeovers using the simple formula to capitalize future income. The authors have determined why MAs are the right choice for a company considering a global expansion. Then the research study explains tactics and evaluation of the MA strategies in a company. The impact of the MA activities on the strategies of the company is then evaluated. Finally, the impact of the MA activities on the society at large is elaborated. The authors were clear in their analysis and gave a straightforward idea about the MA activities throughout a certain time frame ('Merger and acquisitio n roundup', 2011). Theoretical Framework The theories evaluated in this article are related to the merger and acquisitions of companies in the international market. Mergers are defined as the takeover process where two companies merge into one single company. Acquisition one the other hand is the type of takeover process when one company acquires the ownership and all business activities of another company. MAs can be both friendly and hostile based on the market scenario. The fact that MAs are the right choice is evaluated by explaining the mechanisms of joint ventures as well as wholly owned subsidiary companies. The valuation of the MAs faces multiple problems that are disparities in profit maximization and loss of shareholder' interests (Dlabay Scott, 2011). Conclusion Thus, the article focused on the effectiveness of MAs in companies and the way it influences the profitability and market value of the company. It also defines the way MAs, influences the companys business activities, shareholders interest and the global market in general. Reed, M., Babool, M. (2003). Factors Affecting International Mergers and Acquisitions. International Food and Agribusiness Management Review, 6(4), 64-75. Introduction The study is based on the article Factors Affecting International Mergers and Acquisitions by Reed and Babool. The article focused on the factors that describe both inward and outward MA activity for the US. The purpose of this research study was to focus on the concept of international merger and acquisitions in the food processing industry. The issues based on the research topic are the way foreign direct investment or FDI is made in the US food and agriculture industry in the form of MA. The authors while preparing this article seek help from multiple journal articles, newspaper articles, and websites (Ifama.org/files/Reed.pdf, 2015). Research Questions The main research questions discussed in this article are- What are purposes of inward and outward MA for a country? What are the variables used in MA activity? How are the variables used in the US's food and beverage industry? What role do FDI plays in any international MA? (Peng Meyer, 2011) Literature Framework The purposes of inward and outward MA for a country are discussed by elaborating the investment strategy in MA where one country is a recipient country, and another one is the sending country. The recipient country is the country from where the subsidiary company (inward part of investment activity) belongs. Sending country is the country where investing or holding firm (inward part of investment activity) belongs. Then the factors like interest rate and exchange rate that influences the MA activity in US's food, tobacco, and beverage industry are discussed. The way inflow and outflow of FDI strengthen the national, as well as international economy, is finally explained in this article. The authors were clear in their analysis but over emphasized on the benefits of the MA activities in the US food industry (Susnjara, 2011). Theoretical Framework The theories evaluated in this article are related to the merger and acquisitions of firms mainly in the US market. The authors have used numerical data that showed the growth in MA in various countries from 1990 to 1999 and the way each country gained from both inward and outward investment flow in the MA activity. The further evaluated the work of other authors who have used financial management theories like capital budgeting model. They used regression to evaluate the effect of several international trade variables like stock market movements, interest rate and exchange rate on the MA activities. Relevant data were collected for the regression methods like t-ratio method and OLS regression method and then the results were evaluated (S., 2011). Calculation The article mainly focused on the inward and outward flow of foreign investment in a country. Then the three variables (stock market movements, interest rate, and exchange rate) are analyzed. The effect of the MA activity on US's food industry was shown. The author believed that through their research work emphasis on the international MA will be made and the way it will shape up the future position of the global market. International MA activity indeed is a prime focus of the international business. References Czinkota, M., Ronkainen, I., Moffett, M. (2011).International business. Hoboken, NJ: Wiley. Dlabay, L., Scott, J. (2011).International business. Mason, OH: South-Western Cengage Learning. Ifama.org/files/Reed.pdf,. (2015).International Food and Agribusiness Management Association - International Food and Agribusiness Association. Retrieved 2 October 2015, from https://www.ifama.org/ Karhen.home.xs4all.nl,. (2015).Index of //Papers/2/International%20mergers%20and%20acquisitions%20-%20Past,%20present%20and%20future.pdf. Retrieved 2 October 2015, from https://karhen.home.xs4all.nl/ Merger and acquisition roundup. (2011).Metal Powder Report,66(6), 6. https://dx.doi.org/10.1016/s0026-0657(12)70005-x Peng, M., Meyer, K. (2011).International business. London: Cengage Learning. S., B. (2011). A Risk Management Model for Merger and Acquisition.Int. J. Eng. Bus. Manag., 1. https://dx.doi.org/10.5772/50935 Susnjara, J. (2011).Essays on international acquisitions.