Sunday 27 January 2013

Economics 9



In the recent past, the business world has witnessed quite a number of mergers by both small and large firms. This essay seeks to look into the potential cost advantages of these moves. In addition, it looks to explain efficiency of firms in relation to the capital base. Finally, it will seek to explain whether or not these mergers can be based on economies of scope.
            According to Hirschey (2008), mergers and acquisitions often generate cost advantages courtesy of economies of scale. In addition, merging positions firms well to harness additional revenues through increased market share. Moreover, merging enhances the ability of a firm to increase its tax gains. It is therefore apparent that the potential cost advantages accrued by merging firms are not only improved cost efficiency but also value generation and market share increases.
            To say that a national bank with a capital base of 300 billion dollars is likely to be relatively more efficient than either a 30 billion regional bank or a 3 billion state based bank is untrue. The aforementioned is relatively because the costs associated with large firms are often high when compared with those with small capital base.
            Yes, it is true to say that the recent mergers are often predicated on economies of scope. This is relatively because most of these firms merging are keen to stay ahead of competitors by curbing the threat of multinational corporations and be able to position themselves to compete internationally. Mergers often paramount in an industry where companies are striving to remain afloat. Here, an industry will be able to avert impending crisis. Giving that scope, firms will be able to share knowledge and information through increased merging in an industry (Hirschey, 2008).
             

References
Hirschey, M. (2008). Managerial Economics. New York: Cengage Learning.

11 comments:

  1. In this service of the economics 9 you can find the essays and articles for your use. Just search to this link and get the better essays. You can go to this site download the free essays which is a right thing.

    ReplyDelete
  2. Data analysis can help economics and statistics both in better way.If you wants to know more about statistics and its rule then have a look here http://www.spsshelp.org/professional-help-with-spss-statistics-online/.

    ReplyDelete
  3. In this particular services on the economics 9 you could find this documents in addition to articles or blog posts to use. Simply just seek to this particular web page link and find the higher quality documents. You possibly can https://www.statementofpurposeformba.com/statement-of-purpose-for-accounting-mba/ get this cost-free documents that is a suitable matter.

    ReplyDelete
  4. In the Economics we need to follow the potential cost advantages and divide in for the http://latestresumeformats.com/8-blog/18-must-know-5-latest-resume-trends. We also use the Economics analysis data to the public.

    ReplyDelete
  5. Want to get some useful info about Economics online then bookmark today. Now you may write my essay online by using our amazing platform. Share your thoughts with us and also get paid for it.

    ReplyDelete
  6. An economic problem and issue is done for the identification of the items. The surge of the blog has been one to check more info for all individuals. The passage is inquired for the role of the tools for the students in life.

    ReplyDelete
  7. These mergers have increased the business in the regions and have helped the companies to grasp more markets than alone so they can click here at the given markets at any time to raise their profits.

    ReplyDelete
  8. An economics is donning for the financial stability of the elements. The change of the resort is appropriated to check out this site in order to make new roads for the individuals. The mild an approach I am done for the formal mans for the humans me this ambit.

    ReplyDelete
  9. Excellent and incredible layout for the blog! I want to know that for how long have you been blogging for? I want to have tips for starting a blog as click to read I wwish to do so.

    ReplyDelete
  10. In the world of economic issues progress can be attained better and we can fix such issues. Here https://www.professionalessaywriters.com/scholarship-essay/ we can learn about writing best economical essays.

    ReplyDelete