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Free website for collect the test series for IAS prelims by neha sharma





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Free website for collect the test series for IAS prelims by
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Free website for collect the test series for IAS prelims


 
Education,Books,Career
The most significant advantages of global trading are probably those associated with the size and spread of operations. Economies of scope and scale allow for greater efficiency in current operations. Economies of scale provide not just lower unit costs, but also potentially greater bargaining power over all elements in the company's value chain. Economies of scope can allow for the sharing of resources across products, markets, and businesses. Such resources may be both tangible, such as buildings, technology, or sales forces, and intangible, such as expert knowledge for the test series for IAS and team working skills, and brands. Governments have come to recognize these economies, and they have become an important force in the liberalization of trade policies across the developed world. Protectionist governments employing anything other than the infant industry argument are nowadays in a minority. Most accept, at least in principle, the freer trade argument and its potential benefits.

As observes, this has led to the development of compatible technical standards across countries, together with common marketing regulations and a worldwide movement by governments to reduce trade barriers such as tariffs and quotas, with the aim of encouraging world trade and hence globalization. This may well be the most significant overall driving force behind the acceleration of international M&A. International M&A contribute towards globalization as well as being a response to it. There is a continuing interaction between the liberalization of trade and capital flows and the internationalization of production that is at the core of the globalization process. The internationalization of production is advancing mainly through M&A and strategic alliances. MNCs are key players in this process. They have pressed strongly for trade liberalization, and they have endeavored to take advantage of new global opportunities in markets, sourcing, and innovation.

Multinationals are particularly concerned to strategic and competitive position within the global economy. In almost every IAS prelims the students need to hard work and area of economic activity, corporations are now scrambling to establish themselves as global oligopolists. In this frantic race, various forms of integration with other companies offer the most rapid means for MNCs to move towards their strategic objective—through alliances, mergers, and acquisitions. The extent to which these corporations can secure an oligopolistic position through M&A varies greatly according to the number of new entrants and the pace at which new technology platforms are being introduced; there has been far less concentration in the knowledge-based sectors than in traditional manufacturing industries. Nonetheless, the opprobrium that attaches to oligopoly recalls the fact that acquisitions today are judged as much by their social effects as by the returns they promise to shareholders.

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