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Global Financial Markets

Assignment 1

Acme is a US Based firm who are in acquisition talks with European firms JEL Industries that is

a part of European Union and uses the Euro as its currency. The other firm DBC Industries is based in

a European country that is not in the Union and does not use the Euro as its currency. Acme in

acquisitions is attempting to develop a Greenfield project in foreign markets. In this analysis I will

compare European Union member France and India. Due to business expansion and outsourcing

opportunities the Indian markets would be a more profitable market to choose.

In recent years India has emerged as a growing competitor in foreign markets. “Similar to the

global trends in international production, mergers and acquisitions have emerged as an important

process of business restructuring in Indian Economy during the 1990's” (Pradham, J.P. And V. Abraham

(2005). India has become one of the fastest growing markets globally due to its large population and

growth in outsourcing opportunities. The influx of foreign direct investments in India in most industries

expansion of more global companies are providing a tremendous cash flow into the Indian economy.

India is a prominent competitor in information technology and outsourcing practices that provide

significant comparative advantages by its skilled production workforce that are at a more affordable

rate, faster effective services produced and distributed, multilingual English speaking nation amongst

many other lending components makes it a great country to develop a new company with many new

advantages and profitability. During the hard economic times of the US economy the Stock Markets of

India have drastically risen and economists indicate that there will be diplomatic relationships and

competitions built between India, China and the US in regards to production, location, price, its

efficiency and affordability of goods or services rendered.