Industrial Organization Economics Essay Example | Topics and Well Written Essays - 2000 words

industrial Organization Economics - Essay ExampleGlobalization has led to opening up of borders to facilitate trade. Those countries and companies that atomic number 18 ahead in the game realize the benefits compared to the laggards. Some of the strategies that nations have adopted to neutralize the effects of opposition arising from globalization include creating barriers to entry, strategic entry deterrence as well as coalitions and acquisitions. The rest of the composing will outline how the three factors influence industrial organizations as well as their impacts. It will pass on it by discussing three newspaper phrases on the same subject.In an article by Gelles (March 12, 2015) in the bare-ass York Times titled, Uncertainty weighs on Endos higher bid for Salix Pharmaceuticals confirms the competitiveness of merger and acquisition. The article talks about the competition existing between Endo International and Valeant Pharmaceutical over who acquires Salix Pharmaceuticals . Endo has offered $ clxxv per share, compared to $ 158 per share that Valeant offers (Gelles2015). It implies that the attach to that offers a higher bid per share may acquire the parent company and expand the operations. However, many factors hinder the merger and acquisition. These factors are related to policy issues. The board of the parent company has to agree to the offer because the deal will be binding to all the stakeholders including shareholders of the acquired company. In this article, people agree many issues regarding the topic or merger and acquisition. It is contrary to earlier knowledge that acquisition or merger was an arrangement of two companies this article provides evidence of a third party. Third parties can come in if they offer a higher bid than what others offer. Endo offered a higher bid than what Salix had anticipated, which gives it a great chance of acquiring the new investment or the company (Gelles 2015). It is a new scenario rarely experient am ong accompanies.In the article by