Horizontal Mergers Essay

Mergers occur when one business firm buys or acquires another business firm (the acquired firm) and the combined firm maintains the identity of the acquiring firm. Business firms merge for a variety of reasons, both financial and non-financial. There are a number of types of mergers. Horizontal and non-horizontal are just two of many types. WHAT IS HORIZONTAL MERGER? A merger occurring between companies in the same industry. Horizontal merger is a business consolidation that occurs between firms who operate in the same space, often as competitors offering the same good or service. Horizontal mergers are often a type of non-financial merger. In other words, a horizontal merger is undertaken for reason that have little to do with money, at least directly. Simply stated, a horizontal merger is usually the acquisition of a competitor who is in the same line of business as the acquiring business. By acquiring the competitor, the acquiring company is reducing the competition in the marketplace. Suppose, for example, that Pepsi were to buy Coca-Cola. This would be a horizontal merger. Horizontal mergers are common in industries with fewer firms, as competition tends to be higher and the synergies and potential gains in market share are much greater for merging firms in such an industry. Many businesses use this strategy when one is failing to perform. T hey merge as a last ditch effort to keep from going completely out of business. NON-HORIZONTAL MERGER A non-horizontal merger is the opposite of horizontal mergers. A merger between companies in different industry. It is a business consolidation that occurs between firms who operate in different space offering different goods and services. They involve firms who do not operate in the same market. It necessarily follows that such mergers produce no immediate change in the level of concentration in any relevant market. Although non-horizontal mergers are less likely than horizontal mergers to create competitive problems, they are not invariably innocuous. FORMS OF HORIZONTAL MERGERS There are two basic forms of non-horizontal mergers: vertical mergers and conglomerate mergers. Vertical mergers are mergers between firms that operate at different but complementary levels in the chain of production. Vertical mergers or vertical integration happens when the acquiring firm buys buyers or sellers of goods and services to the company. In other words, a vertical merger is usually between a manufacturer and a supplier. It is a merger between two companies that produce different products or services along the supply chain toward the production of some final product. Vertical mergers usually happen in order to increase efficiency along the supply chain which, in turn, increases profits for the acquiring company. In vertical mergers there is no direct loss in competition as in horizontal mergers because the parties’ product did not compete in the same relevant market. Just like horizontal mergers, vertical mergers can result in anti-trust problems in the marketplace by reducing competition. An example would be if an automobile manufacturing company was to buy up other businesses that exist along its supply c hain. It takes many different types of businesses to support automobile manufacturing. If an automobile company bought a seat belt manufacturing company, companies that manufactured different parts of the engine block and the transmission, as well as sources of its raw materials, transportation, technology, and sales (dealerships), imagine the market power that would accrue to that automobile manufacturing company. It would effectively totally control the price for its vehicles without having to consider any other factors. That is the kind of market power that anti-trust laws are meant to control. However, it should be noted that in general vertical merger concerns are likely to arise only if market power already exists in one or more markets along the supply chain. Conglomerate mergers involve firms that operate in different product markets, without a vertical relationship. They may be product extension mergers, i.e. mergers between firms that produce different but related products or pure conglomerate mergers. Conglomerate mergers generally involve the union of two companies that have no type of common interest, are not in competition with any of the same competitors, and do not make use of the same suppliers or vendors. Essentially, the conglomerate merger usually brings together two companies with no connections whatsoever under one corporate umbrella. This type of arrangement can be very desirable when the investors for the newly created conglomerate wish to create a strong presence in two different markets. In practice, the focus is on mergers between companies that are active in related or neighboring markets, e.g., mergers involving suppliers of complementary products or of products belonging to a range of products that is generally sold to the same set of customers in a manner that lessens competition. Proponents of conglomerate theories of harm argue that in a small number of cases, where the parties to the merger have strong market positions in their respective markets, potential harm may arise when the merging group is likely to foreclose other rivals from the market in a way similar to vertical mergers, particularly by means of tying and bundling their products. When as a result of foreclosure rival companies become less effective competitors, consumer harm may result. However, it should be stressed that in these cases there is a real risk of foregoing efficiency gains that benefits consumer welfare and thus the theory of competitive harm needs to be supported by substantial evidence

Public Health of the Developing Country of South Africa Essay

Abstract Studies and statistics have put the cost of one year requirement of standard essential medicines needed for the treatment of AIDS at $ 4000 to $ 6000 in developing countries like South Africa. This cost puts the medicines out of the reach of most of the people infected by HIV in the developing countries. In order to make the medicines available to all the needy people the cost should have been at least 95 percent less. The exorbitant price is because of the cost of the patents. The drugs protected by the intellectual property rights were required to treat diseases like Tuberculosis, in addition to the treatments of HIV/AIDS. Such drugs also included Hepatitis-B Vaccine. There has been a continuous criticism by the social activists and other public health associations, of the action by the World Trade Organization in making the developing countries implement the Trade-Related Aspects of Intellectual Property Rights (TRIPS) Agreement which deals with the protection of Intellectual Property rights relating to the essential drugs. They have also been condemning the attitude of the multinational companies in indulging in excessive lobbying to insist on the implementation of the IP rights protection which will have the effect of enhancing their earnings by charging exorbitant prices for the drugs and for putting the essential drugs and health care beyond the affordability of scores of people in the developing nations including South Africa. However under such circumstances the relationship between the government of South Africa and the international pharmaceutical companies had not been a conducive one – thanks to the implementation of the provisions of TRIPS Agreement. On the decision of the South African Government to pass the Medicines and Related Substances Amendment Act in the year 1997, 39 drug companies joined to initiate legal action against the government. The plea of the drug companies is that the Act gave too much freedom of action to the Health Minister and he acted beyond the legitimate interpretation of TRIPS. It was the endeavour of South Africa to make life saving drugs available at affordable prices. The country wanted to effectively utilize the compulsory licensing opportunities opened by TRIPS so that the prices of the drugs could be put under check. But since the action of the government posed a threat to the earning capacity of the international pharmaceutical companies they went to the extent of entering into litigation with the government of South Africa. Introduction TRIPS (Trade Related Aspects of Intellectual Property Rights) under the authority of the WTO were founded to protect worldwide intellectual property rights. The agreements, governing not only more general intellectual property rights but also those of the pharmaceutical industry, are fairly stringent causing many problems for developing countries especially South Africa which is being ravaged by epidemics which includes AIDS. According to a statistical survey by United Nations[1] 20 percent of the adult population in South Africa tests positive for HIV. The impact of the disease is such that the more than half a million children have been declared orphans. It is also reported that HIV/AIDS related diseases expect to reduce the average life expectancy in South Africa by 20 years in the year 2010. Therefore it can be inferred that the provision of treatment of HIV/AIDS in South Africa is a high priority issue[2]. It has been necessary for South Africa to circumvent part of the TRIPS agreements in an effort to protect its population.   AIDS is taking great toll of the country leaving families without parents and health care hospitals totally unable to cope. The United States currently insists on the TRIPS agreement being strictly adhered to and seems unable, or unwilling, to find a way to help the developing nations with this problem. There have been some efforts made to help them in this respect, for example compulsory licensing and parallel pricing and these methods will be examined in a later section. The negotiation of the TRIPS Agreement has been construed as one that was forcibly introduced by the developing countries against the objection of many of the developing nations. The industrial lobbies (multinational and transnational corporations) have convinced the governments of the developed countries to link the international trade with Intellectual Property Rights (IPR) so that the industrial advancement of the developing countries would be curtailed. This would automatically prevent imitation of technologies and increase the returns on research and development for the developed countries. Monopoly rights granted under IPR were mainly intended to deter the developing countries from advancing on the industrialization. Thus TRIPS Agreement and the protection of IPR have been used to ensure the comparative advantage of the developed countries in terms of the technological development. Under TRIPS countries like India, Brazil which manufactures generic medicines would not have the right to export such medicines with effect from 01 January 2005. This is so despite the fact that the importing countries do have the respective patents covering the drugs. Specifically the least developing countries have put a strong resistance to the requirements of TRIPS especially in the matter of granting the protection rights for the products and processes. While developing countries were required to implement the provisions within one year of reaching the Agreement, the developing countries were given time until the end of the year 2004. In the matter of protection of rights of pharmaceutical products the lease developing countries have been allowed to delay the implementation of TRIPS Agreement provisions till the year 2016. The peculiarity with the provisions of TRIPS is that it allows any country to override the patent right under certain specific circumstances by using the compulsory licensing procedure. For instance when there is a shortage of drugs or the prices of the drugs are too high to make them unaffordable the country can override the patent if the prescribed procedures are followed. This provision of TRIPS presupposes that all the countries do possess the required manufacturing facilities which enable them to use the provisions to produce generic medicines under extraordinary circumstances. But unfortunately many of the developing and least developing countries do not posses such facilities, and hence they would be left with shortage of such drugs. In addition they are also not allowed to import the generics from those countries that possess them. In any case these countries do not have enough power and administrative capabilities to invoke the TRIPS Agreement either due to the reason that they do not possess the know-how required to reengineer the drugs or they fear sanctions from the US and the West[3]. TRIPS Agreement under WTO The TRIPS Agreement is often thought of as one of the three â€Å"pillars† of the WTO (World Trade Organization), trade in goods and services being the other two.[4] TRIPS, initially part of GATT. But becoming part of the WTO brief, was founded to ensure that protection of intellectual property rights was not, of itself, an obstruction to trade and to increase cooperation between members. Under the TRIPS agreement each member state has an obligation to treat all other member states equally. The WTO negotiates between members and helps them to understand and carry out the rules and regulations they have signed up to. It also aids cooperation between members and acts as a watchdog to ensure that the agreement is adhered to. Marketing rights of a patent, when first applied for, are given for a period of 5 years or until the patent is finally approved (whichever is the shorter period) but even during this period members must comply with the rules and regulations as set out in Articles 3 and 4. Because of the nature of the agreement especially as regards pharmaceuticals, it was decided that minimum standards could be used, the USA prefers the higher standards but accepts the minimum as the developing world does not have the capacity to work to the higher standards at the present time. Public awareness of the serious issue of AIDS and other diseases has led to the belief   (by the WTO) that health must, in the final analysis, come before agreements since the spread of AIDS cannot be the sole responsibility of one country. In trying to bridge the gap between the pharmaceutical companies and the developing nations, TRIPS has endeavoured to bring the two sides together by allowing extensions to drugs’ patents but has also allowed some compulsory licensing. Article 3(a) under the TRIPS Agreement states that treatment of all members must be equal,   but Article 3(b) is a get-out clause and Article 4(b) states that all members are equal, unless an †¦agreement was entered into before the WTO agreement.   However, the Council for TRIPS must be informed of any non-observance of Article 3(a) under Article 3(b). The TRIPS Agreement ensures that members discharge their commitments to the World Intellectual Property Organisation (WIPO). Part of the United Nations WIPO was set up in 1974 specifically to direct international treaties and agreements. The Paris Convention on Industrial Property and the Berne Convention on Copyright, two of the major treaties have been brought under the TRIPS umbrella.   The former states that â€Å"members must comply with the obligations they have towards each other† and â€Å"nothing must stand in the way of such obligations†.  Ã‚   However, as noted, there is a get-out clause in cases of emergency which has to be acknowledged by members to the agreements. There is also an agreement that member countries monitor each other for infringements.   Most important in terms of worldwide health problems is Article 67 of TRIPS which states   that developed countries must assist developing countries with the development of their intellectual property rights, it states: â€Å"In order to facilitate the implementation of this Agreement developed country Members shall provide, on request and mutually agreed terms and conditions, technical and financial cooperation in favour of developing and least-developed country members† â€Å"Such cooperation shall include assistance in the preparation of laws and regulations on the protection and enforcement of intellectual property rights as well as on the prevention of their abuse, and shall include support regarding the establishment or reinforcement of domestic offices and agencies relevant to these matters, including the training of personnel.†Ã‚  Ã‚  Ã‚  Ã‚     Programmes to assist the developing nations have already been promoted and are being assisted by the WTO secretariat and WIPO. TRIPS Agreement in Relation to Medicines   Since most pharmaceutical research and development is carried out in developed countries the organisations involved feel that they should be better protected.   Most drugs cost millions and take years to test and develop before being allowed onto the market, the industry naturally want returns by way of profits on sales. AIDS medication has been a particularly important breakthrough since: ‘HIV infects an estimated 45 million persons worldwide†Ã‚   but there are also â€Å"†¦1.86 billion cases of infection with mycobacterium tuberculosis†[5] therefore, it is imperative that something be done to help alleviate this type of suffering which, with the ever growing number of tourists, should be the concern of not only those countries in which these epidemics are raging but every nation whose borders are open to travel from other countries. The TRIPS agreement, currently, seems to err on the side of the drugs’ companies, probably because they have such powerful lobbies and are part of the new world-wide elite of corporations which, according to Janet Dine, are increasingly importing their own ethics into the developing countries and virtually taking over, creating in the process an impoverished and unhealthy nation, they, the indigenous population have to take what is offered often at less than subsistence wages and become more dependant on the corporations who have moved into their countries in search of ever increasing profits. The money the corporations make from taking over in developing countries returns, not to the people of that region, but to their own countries.  Ã‚   With tax incentives and a population who take any work they can get to survive at the lowest rates offered, these Corporations appear to be fuelling a crisis in health for some of the poorest nations in the world.[6] Although The TRIPS agreement does allow for compulsory licensing in an emergency, each country must first negotiate with rights’ holders and must use those drugs obtained under such a license only for the emergency period and not for any commercial gain. Specific areas, such as South Africa, are going through a health crisis which needs the drugs already available to ameliorate it, however, in spite of clause 3(b), they are getting no further forward in their fight to help their citizens to overcome unprecedented death rates that the epidemics are producing. In spite of Articles 30/31, which allow for compulsory licensing, the poorest and least developed nations are fighting against the cost of the use of patents and the epidemics themselves. Compulsory licensing does not adequately cover the needs of such nations in   â€Å"sub-Saharan Africa since they do not have facilities to manufacture their own drugs.†[7] Protection of intellectual property is not part of the culture of many countries, nevertheless, the TRIPS Agreement was signed on 15th April 1994 by 117 nations. The agreement allows intellectual property rights to be â€Å"enforced by trade sanctions†[8] and, although some countries were not in complete agreement, international trade is vital to their economic growth so, however reluctantly, they signed.   Inhibitors, which have done much to control AIDS in the west, cost as much as $10.000 per head annually but international trade is the life blood of developing nations therefore they had little choice but to do so.[9] 4. TRIPS and Developing Countries It has been observed that implementing TRIPS Agreement and recognizing IPR on pharmaceutical products and processes would result in the following problems to the developing countries[10]: The minimum 20 years protection to the IPR would grant a virtual monopoly for a pharmaceutical company over its patented drug and the company would be able to charge exorbitant prices on the drugs without competition which in turn would keep the drug prices very high during the period of protection. It is also not possible to bring any generic equivalent into the market due to the TRIPS Agreement. This would deny the patients cheaper alternative drugs. The product and process patents provide for the protection of the product as well as the technology. Under the TRIPS Agreement the countries are given the right to make application for the protection of patent rights on drugs for a period extending up to twenty years. After the expiation of this period the countries can get the protection extended for further periods to the processes being employed in the manufacture of the drugs. This no doubt creates a monopoly situation on the drugs. Such protection also throw the domestic pharmaceutical producers in the developing countries out of market as they have to compete with large multinational pharmaceutical manufacturers which is not possible for small producers in the developing nations who use cheaper generic alternatives. Moreover such production may not be carried out by them during the 20 year protection period. Under TRIPS Agreement patent rights need to be granted irrespective of the fact that the products are imported or domestically manufactured[11]. This implies that the transnational corporations can supply global markets under the monopoly of patent rights even without producing any medicines in the developing countries by simply importing them into the developing countries. There will be no flow of technology or foreign direct investments into the developing countries as envisaged by the WTO However under Article 66 of the TRIPS the least developed countries were allowed to postpone the application of the provisions relating to the patents for a period of 10 years on specific application.[12] 5. Exceptions to the Patent Protection of Pharmaceuticals    Parallel importing – implying that the developing counties are allowed to import the drugs from the cheaper markets for resale in their respective countries and thereby lower the prices of drugs. Compulsory licensing – under compulsory licensing scheme, the government acting through the courts of law is empowered to provide a license in favor of a third party. Such license may be granted by the government even without the prior consent of the license holder. However the compulsory licensing can be resorted to in cases of national emergencies. The license may also be compulsorily transferred to a third party in case of an extremely emergent situation or where there are circumstances implying any anti-competitive movements by the manufacturers. The compulsory licensing is resorted to by the governments to make the drugs easily available to the poor and needy people at affordable costs. It also ensures that the patent holder is provided adequate compensation for use of the patent. 6. Public Health in South Africa and the Impact of TRIPS Agreement The need for cheaper drugs in South Africa can not be undermined. The impact of AIDS in the country poses the situation of an extreme emergency forcing the implementation TRIPS. The economy of South Africa is likely to get affected by a reduction of 1 percent every year because of the work force getting disintegrated. It is estimated that the life expectancy would be lowered to 50 years in 2010 from 70 years currently. These threats to the economy and population growth would as well be a threat to ‘peace and order’ situations in the country of South Africa[13]. In this context all the problems enumerated above for the developing nations have been faced by South Africa also. In addition when the government wanted to implement the Medicines and Related Substances Control Bill, the US Government vehemently objected to the passing of the law which allowed for parallel importing and compulsory licensing. However amidst lot of pressure on the government and the Parliament the South African government enacted the law in the year 1997.The pharmaceutical lobby backed by the transnational companies in the South Africa not only filed a suit against the promulgation of the law but also indulged in negotiations and threats   to the government to change its stand. The pressure was intense after the year 1997 when the South African government tried to implement a number of policy measures to lower the prices of drugs used in public health. â€Å"The SA policies have focused on such issues as mandatory generic drug substitution, restrictions on inappropriate marketing efforts, registration of generic versions of the cancer drug Paclitaxel (sold as Taxol by Bristol-Myers Squibb), parallel-imports, and compulsory licensing†[14]. It may be noted that despite Article 31 of the TRIPS Agreement that provides for the parallel importing and compulsory licensing the transnational pharmaceutical companies have vehemently opposed the attempts by developing countries like South Africa taking measures for implementing parallel importing and compulsory licensing as these practices would allow these countries to have their requirements of the medicines at cheaper prices which in turn would affect the profits of these transnational companies[15]. It was after the intervention of the AIDS activists and health activists that US came to an understanding in the issue. The government of South Africa insisted that it retains all the original provisions defending its position be retained. The government also wanted to make the fullest use of compulsory licensing and parallel importing which were considered as detrimental to the interests of the American Transnational Companies[16]. How American Corporations Control the Business World A- Business lobbies: Large and small businesses in the United States have been organised into various associations, for example Business Round Tables are national Associations which include membership of the Chief Executive Officers (CEOs) of all the most important trans-national companies and the National Chamber of Commerce includes all sizes of firms.[17] Round Tables have been in existence since 1972, the first was formed by forty-two of the (then) biggest and most important U.S. companies including banks, retailers, Insurance, transport and most of the utilities’ companies. They were designed to enable business to proceed without the destructive competitive basis of the business world. They were described as: â€Å"An association of chief executive officers who examine public issues that affect the economy and develop positions which seek to reflect sound economic and social principles. †¦ the Roundtable was founded in the belief that business executives should take an increased role in the continuing debates about public policy.†[18] The raison d’etre for these firms was the idea that ‘what ever is good for business is good for the American people’. They argued that, employees, purchasers, suppliers etc all have an interest in a business. These associations, they say, represent a cross section of the American public.[19] The idea that ‘what is good for business is good for America’ is patently nonsense since most people are in fact excluded from any rights in this elite world.  Ã‚   Employees have little or no say in the running of their firms and consumers must pay the prices asked, they do have the right ‘not to buy’ which is a somewhat negative view of the process of inclusiveness. David C Korten says that most of the memberships of the Round Tables are confined to white males over the age of 50 whose salaries are enormous. They do not, as claimed, consider that what is good for business is good for America but rather endeavour to maximise their own profits and those of their shareholders by seeking to globalise in areas where they can have an almost free hand to carry out their business practices almost unhindered by the laws of any country they move into. [20] Free Trade has long been an ideal of the American Corporate world which is why the Round Tables campaigned vigorously for the North American Free Trade Agreement (NAFTA and created USA-NAFTA to front their interests, the American public, nervous at so much control in so few hands, have been given country-wide blanket assurances through the media.   In spite of the fact that NAFTA was supposed to be a really broad church of interests it is really part of the elite Round Table Associations and has many representatives on advisory committees. The country might have been even more nervous if they had realised that at the time of the creation of these Round Tables the major companies were in fact laying aside their competitive differences to â€Å"reach a consensus on issues of social and economic policy for America†.[21] B- Influence of U.S. Democracy Janet Dine claims â€Å"no single idea is more deeply embedded in modern culture than the belief that economic growth is the key to meeting most important human needs, including alleviating poverty and protecting the environment† [22] which accounts for the greatest growth area in Washington being public relations firms. These firms work hard to protect the images of their corporate clients against a rising tide of discontent which is now manifesting itself throughout the world. It could be thought that they are fighting a losing battle but â€Å"the top fifty public relations firms billed over $1.7 billion dollars in 1991†[23] which gives rise to the question, why are these PR firms so necessary? There is probably no single answer to this question but very little news is given directly to the public without some corporate employee looking at the effect it will have, news and advertising, according to Korten, are almost synonymous.[24] The political system of America has greatly changed in the post war period of more general affluence. The Democratic party has lost its basic identity   the party of the people – as opposed to the Republicans who have always represented business and the wealthier side of the electorate – this being so the Democrats are far more dependant on the need to raise funds for their electioneering and have turned to the corporations who inevitably want quid pro quo for their donations. The mass media are heavily behind the elitist values of corporate America and the amount they are able to pay to PR firms to put across an extremely one-sided policy and both the leading parties needing the financial backing of corporate America, this, says David C Korten, â€Å"This is the sorry state of American democracy†.[25]   He says that voters tend to be seen as a passive homogeneous mass of potential customers who can be told not only what to buy but also what to think and feel.   What is worse, this idea of corporations is spreading, many trans-national companies rely heavily on the corporate idealism of what is good for them is good for the people they sell to.   Mexico and Japan both use those same American firms to tell their populations what they should think and feel and ultimately what they should buy. C- American Democracy   for Sale: â€Å"The Mexican government spent upwards of $25 million and hired many of the leading Washington lobbyists to support its campaign for NAFTA. †¦ Japanese corporations were spending an estimated $100 million a year on political lobbying in the United States and another $300 million building a nationwide grassroots political network to influence public opinion†. [26] Canada, Britain and the Netherlands’ governments employ public relations’ firms in America to help them lobby and draft laws that will be favourable to the business elites in their own countries. These companies try to sell the idea of ‘corporate libertarianism’ [27]which is supposed to allay the fears of those who have an idea that all is not well in the corporate world of business, it is possible to claim that these corporations are in fact in the act of ‘taking over the world’ and with the resources piling up behind them it could well happen in the not too distant future. The United States and Higher Levels of Protection. To add to this theme of a world take-over by corporate America, the signatories to TRIPS have begun to rethink intellectual property protection.[28] This is bad news for those under-developed countries which rely on drugs from the western world to protect their citizens from ravaging epidemics. Rosalyn S Park says: â€Å"Poor, developing nations have been most affected by the patent protection laws and resulting high drug prices, yet these nations also harbor the highest number of HIV-positive people. Consequently, the vast majority of people in need of HIV/AIDS medicines simply cannot afford them†. [29] In 2006 new protection laws will come into force which all members must adhere to. This will have a devastating effect on the millions of people in countries too poor to have their own drugs’ businesses, they will become more reliant upon those better protected, developed countries making vast profits from the countries least able to pay. Neither the USA nor the European Union appear greatly interested in aiding those countries with the greatest needs and the least ability to pay.   Admittedly concessions have been made as regards agricultural and textile concessions but this has been at the cost of allowing higher property rights which is a swings-and-round-a-bouts situation.   It would be much more useful to South Africa specifically and to the developing world in general, if the costs of patented drugs could be either brought down or, as a common sense gesture of good will, eliminated completely until such time as the AIDS epidemic was at least brought down to manageable proportions. In spite of â€Å"several different types of drugs on the market which help combat AIDS and AIDS related illnesses†[30] not enough are getting through to the developing countries as the multinationals are still insisting on not just the status quo as regards intellectual property rights but even higher levels.[31] They appear to be driven only by the profit motive and the perceived necessity for free trade paying little attention to the suffering caused in the developing world. Nor are they taking a long term view, highly contagious diseases are rife in the developing world, therefore, with the modern freedom of travel, no country can ever be safe from the same epidemics.   Even with modern drugs to combat them, new strains will develop, new drugs will have to be found and costs will escalate. Drugs now exist which allow people with AIDS to live a reasonably normal life including returning to work, it would in fact be in the interests of the drugs’ companies to allow South Africa to use them, dead people have no use for drugs nor anything else that the multi-nationals may wish to sell them. Conclusion The TRIPS Agreement was a milestone in patent protection of intellectual property rights and was considered to be a financial safeguard for research investment, however, it also had the effect of pricing some pharmaceuticals out of the reach of many nations most in need of the most recently patented medicines.   Before the TRIPS agreement, governments had been able to make compulsory licence orders to produce drugs at lower prices in their own countries, after the agreement, although still possible, it is much more difficult and thus more difficult to protect their citizens from the epidemics which are wreaking havoc in their countries. It is important to protect intellectual property rights but it is far more important to protect people’s lives but the balance currentlppears to be largely towards the greater protection of pharmaceutical industries. TRIPS allows compulsory licensing and parallel pricing but underdeveloped countries such as South Africa are being prevented from using them because of the threat of trade sanctions and trade is vital to their economies. It is necessary to protect peoples’ work and investment and research must be encouraged especially into life-threatening diseases. Corporations who invest time and money into producing drugs to cope with these scourges should reap the rewards of their labour.   However, many drugs’ companies are seeing such enormous returns on their investments that concessions should be made to underdeveloped countries which so desperately need the medications produced by these huge giants of industry. In spite of concessions in the TRIPS agreement, corporations do appear to be protected at the expense of people’s lives. Public health should be and is a priority in the west where governments can afford to buy the health of their citizens. Unfortunately, this is not the case in the poorer, less developed countries where governments are struggling to find ways to access drugs and yet to maintain a healthy trading relationship with the countries which hold the patents to these drugs. Good health is the basic right of every citizen of every country wherever possible. More goodwill is necessary on the part of the western world and America in particular to allow compulsory licensing and parallel pricing to be used without the threat of trade sanctions.  Ã‚   Epidemics do not respect borders, they can be carried by people to all corners the world, what was a third world problem yesterday is our problem today, world health is an issue that no country can ignore therefore although corporations must be allowed fair returns on their investments it must not be at the expense of world health. It is quite apparent that TRIPS Agreement has not taken into account the public health needs of the developing nations while formulating the clauses relating to the protection of IPR in respect of pharmaceutical needs. The Agreement has not specified any particular obligations towards those governments granting the IPR for pharmaceutical products. The Agreement has also not considered the need for public health in the developing countries and grossly ignored the interests of the patients of these countries. There are a number of factors that the developing countries have to take into account including the implication of the TRIPS Agreement and the patent protection under the Agreement in the provision of medical facilities and adequate public health to the people of the respective developing countries. â€Å"At the end of the day it must be recognized that the poorer residents of the world’s least affluent nations cannot pay even the marginal cost of drugs that might save their lives or permit them to become productive workers†[32]. Bibliography    Conceicao Soares (2007)‘The HIV/AIDS crisis and corporate moral responsibility in the light of the Levinasian notions of proximity and the Third’ Business Ethics: A European Review Vol. 16 No 3 p 280 David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London, p.144 Duane Nash, â€Å"†¦VI, Foreign & International Law South Africa’s Medicines and Related Substances Control Amendment Act of 1997† 15 Berkeley Tech. L J. 485(lexis) Fact Sheet ‘Developing Countries’ Transition Periods’ p1 F.M. Scherer and Jayashree Watal ‘Post-Trips Options for Access to Patented Medicines in Developing Nations’ Journal of International Economic Law (2002) p 939 Janet Dine, The Governance of Corporate Groups, Cambridge University Press, 2000.p.157 J H Reichman, The TRIPS Agreement Comes of Age: Conflict or Cooperation with the Developing Countries? P.6 John A. Harrelson, â€Å" IV. Note: Trips, Pharmaceutical Patents, and the HIV/AIDS Crisis: Finding the Proper Balance Between Intellectual Property Rights and Compassion† 7 Wid. L. Symp. J . 175(lexis) Kara M. Bombach ‘The South African Medicines and Related Substances Control Amendment Bill and TRIPS’ p1 Lisa Foreman (2007)‘Trade Rules, Intellectual Property and the Right to Health’ Comparative Program in Health and Society Munk Centre for International Studies University of Toronto Ethics & International Affairs Vol. 21 No3 p 342 Louise Sylvan ‘TRIPS: Protecting Intellectual Property or Putting Profits Before People’ Online Opinion    p1 Medecins sans Frontieres (1999) Access to HIV/AIDS medicines in Thailand, Medecins sans Frontieres Report to the National AIDS Committee of Thailand, August 1999, MSF website, www.accessmed-msf.org/msf/accessmed/accessmed.nsf/html/4DTS2? Open Document.p1 N.B. Zaveri (1999) ‘Success often comes to those who dare and act’, paper presented at Brainstorming Workshop on WTO Agreements and People’s Concerns, New Delhi, Oct/Nov 1999 p1 Patric Bond ‘US Policy toward South Africa and Access to Pharmaceutical Drugs’ Alternative Information and Development Centre p1 Ross Brennan and Paul Baines (2005) ‘Is there a morally right price for anti-retroviral drugs in the developing world’ Business Ethics: A European Review Vol. 15 No 1 p32 Rosalyn S Park, The International Drug Industry: What the Future Holds for South Africa’s HIV/AIDS Patients, Minnesota Journal of Global Trade, p.3 Z. Mirza (1999) ‘WTO/TRIPS, pharmaceuticals and health: impacts and strategies’, The Network’s Drug Bulletin, Sept-Dec 1999, Vol. 8, No. 5/6, Association for Rational Use of Medication in Pakistan p 27       [1] United Nations (2004) Report on the Global AIDS Epidemic. Geneva: United Nations [2] Ross Brennan and Paul Baines (2005) ‘Is there a morally right price for anti-retroviral drugs in the developing world’ Business Ethics: A European Review Vol. 15 No 1 p 32 [3] Conceicao Soares (2007)‘The HIV/AIDS crisis and corporate moral responsibility in the light of the Levinasian notions of proximity and the Third’ Business Ethics: A European Review Vol. 16 No 3 p 280 [4] www.wto.org (Frequently asked questions about TRIPS in the WTO). [5] Duane Nash, â€Å"†¦VI, Foreigh & International Law South Africa’s Medicines and Related Substances Control Amendment Act of 1997† 15 Berkeley Tech. L J. 485(lexis) [6] Janet Dine, The Governance of Corporate Groups, Cambridge University Press, 2000.p.157 [7] John A. Harrelson, â€Å" IV. Note: Trips, Pharmaceutical Patents, and the HIV/AIDS Crisis: Finding the Proper Balance Between Intellectual Property Rights and Compassion† 7 Wid. L. Symp. J . 175(lexis) [8] Ibid [9] Ibid [10] Z. Mirza (1999) ‘WTO/TRIPS, pharmaceuticals and health: impacts and strategies’, The Network’s Drug Bulletin, Sept-Dec 1999, Vol. 8, No. 5/6, Association for Rational Use of Medication in Pakistan p 27 [11] Medecins sans Frontieres (1999) Access to HIV/AIDS medicines in Thailand, Medecins sans Frontieres Report to the National AIDS Committee of Thailand, August 1999, MSF website, www.accessmed-msf.org/msf/accessmed/accessmed.nsf/html/4DTS2? Open Document. p1 [12] Fact Sheet ‘Developing Countries’ Transition Periods’ p1 [13] Kara M. Bombach ‘The South African Medicines and Related Substances Control Amendment Bill and TRIPS’ http://academic.udayton.edu/health/06world/africa01.htm p1 [14] Patric Bond ‘US Policy toward South Africa and Access to Pharmaceutical Drugs’   Alternative Information and Development Centre  Ã‚  Ã‚  Ã‚  Ã‚      p1 [15] Louise Sylvan ‘TRIPS: Protecting Intellectual Property or Putting Profits Before People’ Online Opinion p1 [16] N.B. Zaveri (1999) ‘Success often comes to those who dare and act’, paper presented at Brainstorming Workshop on WTO Agreements and People’s Concerns, New Delhi, Oct/Nov 1999 p1 [17] David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London, p.144 [18] Ibid [19] Ibid [20] David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London, p.144 [21] Ibid [22] Janet Dine, The Governance of Corporate Groups, Cambridge University Press, 2000.p.156 [23] David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London, p.146 [24] Ibid [25] David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London, p.147 [26] Ibid [27] David C Korten, When Corporations Rule the World, Earthscan Publication Ltd. London,pp.147-148 [28] Rosalyn S Park, The International Drugs Industry: What the Future Holds for South Africa’s HIV/AIDS   Patients, Minnesota Journal of Global Trade, 2002.p.1 [29] Ibid [30] Rosalyn S Park, Minnesota Journal of Global Trade, 2000, p.2 [31] J H Reichman, The TRIPS Agreement Comes of Age: Conflict or Cooperation with the Developing Countries? P.6 [32] F.M. Scherer and Jayashree Watal ‘Post-Trips Options for Access to Patented Medicines in Developing Nations’ Journal of International Economic Law (2002)   p 939

European Integration

Since the day of its establishment it endeavourers to create prosperity and stability for its citizens – the citizens that are directly or indirectly affected by the Ex.'s policy and its actions. The aim of this Union is a Just society with an attitude of solidarity that promises to support economic prosperity and to create vacancy by making their enterprises more competitive and providing their employers with new abilities and skills. The European Union represents the world's greatest economic power and revised great financial and technical support to poorer countries. The EX. is still in progress when it comes to its composition.There are countries that are – due to their economic situation and their attitudes – a challenge when it comes to integration into the Union. On the other hand there are countries that do not want to be a member. Norway is one of them. The reasons why Norway rejected the membership to the EX., after being asked twice, may be discussed i n the following. The essay shall provide an overview of Norway pros and cons and the reasons why they still have not Joined the EX. as member. WoosГ Kola economies a management Lecturer: Peter Hamlet 2. History The human settlement of Norway goes back at least 11000 years.The first Norwegian lived by fishing, hunting and by farming. (see Allegorists) A period which was significant for expansion is called the Viking Age. During this period, Norwegian sailed to Scotland, England, Ireland, France and also Spain. The Danes and Swedes sailed abroad, too. This is the time when Scandinavia really became a part of Europe. The Vikings were famous for: strong warriors, prisoner taking, slaves dealing, efficient merchants, craftsmen and farmers. In the Freakish Empire they were known as the Northern. This name arose, when Norway and Denmark explored this area for trade and plunder.Norway gained more and more importance in this time. In the middle ages Norwegian population increased (about 400. 000). In the eleventh century the whole country were controlled by the church, the king and the overlords and they converted to Christianity. The inhabitants felt very unhappy in the next century and there were plenty of fighting in the inside of the country, that's why it is called the Civil War Period. Followed by the â€Å"Golden Age†, the king of Norway ever owned more Lana tan ever. One Tanta AT ten population was put on eat the â€Å"Black Death†, a plague in 1349. See Multiple) Between 1396 and 1536 Norway was part of Kalmia Union. The Union was formed in 1397 in the town of Kalmia on the Swedish east coast. A relative to Queen Margaret, Erik of Pomeranian, was elected king over Denmark, Sweden and Norway (see superstring) Sweden broke away 1523, but Norway remained united with Denmark. 1814 Denmark was forced to surrender Norway to Sweden. From now on, 1905, Norway is a free country, the union with Sweden ended and decided to give Prince Carl of Denmark th e throne. During the years 1914 till 1918, First World War period, Norway stayed neutral and also in the first time of the Second World War.In the late asses the Norwegian accepted Marshall Plan and Joined the NATAL, after abandoned their past neutrality. The current king, King Hookah, died and got replaced by Loaf V and he got replaced by his son, King Herald V. , in 1991. The economic policy was very important for the postwar history for Norway. In this time economic planning was introduced and several state-owned enterprises have been established. (see Inconsiderableness) 3. Norway – An Overview 3. 1. Economical With a GAP per capita of Ð ²?64,600 in 2008 (2nd highest in the EYE after Luxembourg) and an estimated national budget surplus the Norwegian economy is very sound.Norway belongs to the leading group of the richest countries in the world measured by GAP per capita. Public finances are boosted by significant revenues from the petroleum sector. Traditional economic a ctivities are shipping (fourth largest fleet in the world), fisheries and fish farming. The oil and gas sector constitutes around 25% of the Norwegian GAP and 52% of Norwegian exports (35 times higher than the export value of fish). Norway is a very important exporter of metals. Norwegian companies are major producers of ferry-alloys and, in particular, of aluminum.Norway is the main source for the EX. of primary aluminum. 60% of our total imports AT alloys Ana AT inwrought metal relegate In Norway. Norway Is rarely anew with natural resources such as oil and gas, hydrophone, fish, Marshall Plan: The Marshall Plan, known officially following its enactment as the European Recovery Program (ERP), was the main plan of the United States for the reconstruction of Europe following World War II. The initiative was named for United States Secretary f State George Marshall. NATO: Military alliance formed between 26 nations to enforce the North Atlantic Treaty of 1949.NATO was originally form ed to combat the spread of communism, but has grown since then to provide a mutual defense from external threats. 2 1 forests and minerals and timber. Despite intensive technological and industrial developments that have taken place in Norway, natural resources still account for the bulk of Norwegian exports. The construction and operation of the largest offshore installations on earth has led to the establishment of a substantial offshore technology industry. Traditional economic activities are shipping (fourth largest fleet in the world) and fisheries, along with fish farming.Shipping represents also an important source of export revenues for Norway. In addition, Norway is one of the top three seafood-exporting nations worldwide. Around 95% of production is exported. In recent decades, Norway has been in the forefront of Western countries' growth performance. Over the last decade, Norway sustained economic expansion was underpinned by strong macro-economic policies, the commitment to low inflation and fiscal restraint, and the strategy of investing the bulk of oil revenues abroad. The adoption of inflation targeting and fiscal policy guidelines, have further strengthened the policy framework.After having experienced a cyclical downturn of its economic growth due mainly to high wages, high interest rates and a strong currency, a very tight monetary policy made Norway recover. As expected, household demand is making a considerable contribution to the cyclical upturn as well as higher petroleum investment. In the period ahead, the global upturn will also stimulate Norway exports of traditional goods. The situation for internationally exposed industries has improved, not least thanks to what appears to be a stabilization of the crone exchange rate and a moderate wage settlement. (see European Commission) 3. . Political As mentioned in the first chapter and like you can extract from the Interpreting â€Å"Encyclopedia of the Nations†, Norway followed a pol icy of strict neutrality from 1905 until 1940. In 1940, Germany invaded Norway and carried out an exacting occupation until 1945. The German occupation left behind a bitter experience. That's the reason of Norway long dominant political sentiment for neutrality and let them Join the North Atlantic Treaty Organization (NATO) in 1949. (see Inconsiderableness) Norway is a constitutional monarchy. In the country the head of the state enjoys not unlimited power.The monarch has the power in the direction of Starting (Applicant), he designates the chief of the government (prime Minster). The parliament has the real power. The Starting has 165 seats, split among eight parties in the elections of 2001. Elections are held every four years. The parliamentary system is not like the most, an election is not called if a government loses a vote of confidence, although the prime minister may change. Due to the large number of parties and a system of proportional representation, coalition government s are the rule in Norwegian politics.Changes of government are a relatively frequent occurrence, even by the standards of European parliamentary systems, because most governments over the past decade have been minority governments. The ability to build consensus is thus a key to success for politicians and for parties. Ideological parties tend, therefore, to be small because they are often exclusive. Women play a greater role in Norwegian politics than in any other European country. For many years, a woman, Grog Harlem Borderland of the Labor Party, dominated Norwegian politics and served intermittently as prime minister. European Integration The following paper will provide an overview on the importance of the regional union of Balkans countries before joining European Union. Initially the paper will describe the main forms of integration and the main benefit for each of them. Furthermore, the paper will explain the main barriers of political integration of the Albania, Macedonia, Kosova and Montenegro. The essay will be based in the daily political development of the region and the theory given from deferent scholars of economics and business. Regional integration principlesRegional alliances to promote liberalization trade are important features in the second half of the 20th century. Today there are close to 100 agreements although not all of them have a practical implementation. Countries are trying to integrate their economies and open to new markets for their domestic firms and lower prices for their customers. According to Lundby & Jeffrey (2010), the characteristics of most important of international business are the extent of economic integration among the member countries.The economic integration affects exporting and investment opportunities among members and non-member countries. According to Warne &Nicholas (2005), there five different economic integration like free trade area, custom union, common market, economic union and political union. Following Bennett (2002), free trade area eliminates trade barriers among member countries like the NAFTA agreements between Canada, Mexico and United state. Custom union refers to the elimination of the trading barriers among members with common external trade policies for non-member countries.The best example of the custom union is the agreement between Argentina, Brazil, Paraguay and Uruguay. According to Gelfand, & Brett (2004), common union has the same characteristics as the custom union with the additional element the elimination of the barriers that inhibit the movement of production factors labor, capital and technology among members. Econ omic union represents full integration among countries. It includes the common union integration with additional economic policies integration among members. The best example of economic integration is the European union.The last form of integration is the political integration where countries follow a full political and economic integration. The best example of political union is the united state of America. Regional integration between Albania, Montenegro, Kosova and Macedonia. Albania has a favorable geographical position since it links the west developed Europe with the postcommunist European countries, East Europe. According to INSTAT (2009), Albanian population is close to 2. 8 million inhabitants.Neighbor countries are Montenegro with 0. 7 million inhabitants; Kosova with 1.8 million inhabitants; Macedonia with 2 million inhabitants. All these countries separately are not attractive from global companies because of their small size. According to Krishna (2005), economic integ ration or trade blocs are preferential trade agreements between numbers of countries to reduce or completely remove the barriers between members. Trade blocs increase the market power for each of the trading members. It increases productivity and companies take advantage of economies of scale. Also, it increases the competition between members of the market.Low costs will make the member countries firms more competitive in the non-member countries market. Small countries are the ones who take more advantage from the trading blocs than the large members of the agreement, by opening their product to a larger market. Companies take the decision to expand the business in foreign countries by considering the trading blocs and its main benefits. However, elimination of the trade barriers exposes the firm's home market to competition of other member and non-member countries, thus threatening the less efficient firms.A regional economic integration attracts the foreign investments from non- member countries as firms outside the bloc seek the benefits of insider status by establishing manufacturing facilities within the bloc. In order for these countries, to attract global companies and increase the foreign direct investments needs and economic integration among all countries and effectively make them one country. Integration of Albania, Montenegro, Kosova and Macedonia will create a market of 6. 2 million customers.Also, the integration will standardize the import and taxation policy toward the non-member countries by eliminating the differences among countries. According to Yoshino & Rangan (1995), economic integration and opening to new markets there are challenges like differences in culture, political and economic environment, and regulation between countries. Cultural and economic changes product customization. In case of the economic integration between Albania and its neighbor countries, there are limited cultural differences. All countries have almost the same philosophy of the living, tradition and customs.The similarities between countries will help companies to minimize their costs by using the same brand, same advertising strategy and message across markets. Furthermore, countries show similarities in the economic situation. They are all low-income countries with the same needs and resources to accommodate those needs. This situation increases the demand for fast moving goods by representing big opportunities for global companies operating in these industries. There is not much to say about legal restriction since they do not exist.Legal and regulatory framework is in favor of foreign investment in the region. Typically, each form of economic integration confers benefits on the national economy but hurts particular sectors and communities within that economy. As a result, negotiating any form of the economic integration is not easy. According to Koyuturk et al. (2012), strategic alignments within a company are production, marketing, f inancial and research and development alliances. Production alliances happen when two different companies create a joint venture to produce a common product or facility.Marketing alliances between companies consist in sharing of the marketing services or consultancies. Financial alliances consist in sharing the risk of investment with other partners. R&D alliances refer to joint research with partners for developing new product or services. The above strategic alignment can be managed through shared management agreements where all the involved parties participate in the shared agreement fully and actively. Strategic alignments will decrease the company cost but will have an issue for the employees.Therefore, sharing of some of the functional services many companies will cut their labor force. Local government should create defense policies to mitigate the risks of the integration. Also, political instability, high level of corruption and previous conflicts are the most difficult int egration barriers. The suggested form of integration that will strengthen the position of these countries in the region and drive a competitive advantage is the political integration. It relates to cooperation between states and formation of state based regime.Also, it refers to the constitution of new political entities with a certain degree of independent from the individual states. Regional integration strengthens the political system the scope and the capacity of its decision making process. Furthermore, legal integration it is closely related to the political integration and involves the establishment of common legal rules and common legal systems for citizens of different states. The disadvantages of regional integration are, to begin with that to achieve it, you must sacrifice some degree of sovereignty.This could negatively affect conflict resolution. This loss of flexibility in creating solutions to problems is a huge disadvantage. Conclusion Following the main forms of int egration the political integration is the most efficient one for the analyzed countries. Political integration of Albania, Kosova, Macedonia, and Montenegro will create new opportunities for these countries. It will increase the market power for each of the trading members and increase productivity and companies take advantage of economies of scale.Also, it increases the competition between members of the market. Lower costs for the member countries will make the member countries firms more competitive than the non-member countries market. Also, regional integration allows strategic alignments within a company in production, marketing, financial and research and development alliances. However, the political integration will strengthen the position of these countries in the region and drive a competitive advantage for the group of countries. European Integration IntroductionThe following paper will provide an overview on the importance of the regional union of Balkans countries before joining European Union. Initially the paper will describe the main forms of integration and the main benefit for each of them. Furthermore, the paper will explain the main barriers of political integration of the Albania, Macedonia, Kosova and Montenegro. The essay will be based in the daily political development of the region and the theory given from deferent scholars of economics and business.Regional integration principlesRegional alliances to promote liberalization trade are important features in the second half of the 20th century. Today there are close to 100 agreements although not all of them have a practical implementation. Countries are trying to integrate their economies and open to new markets for their domestic firms and lower prices for their customers. According to Lundby & Jeffrey (2010), the characteristics of most important of international b usiness are the extent of economic integration among the member countries. The economic integration affects exporting and investment opportunities among members and non-member countries. According to Warne &Nicholas (2005), there five different economic integration like free trade area, custom union, common market, economic union and political union.Following Bennett (2002), free trade area eliminates trade barriers among member countries like the NAFTA agreements between Canada, Mexico and United state. Custom union refers to the elimination of the trading barriers among members with common external trade policies for non-member countries. The best example of the custom union is the agreement between Argentina, Brazil, Paraguay and Uruguay.According to Gelfand, & Brett (2004), common union has the same characteristics as the custom union with the additional element the elimination of the barriers that inhibit the movement of production factors  labor, capital and technology among members.Economic union represents full integration among countries. It includes the common union integration with additional economic policies integration among members. The best example of economic integration is the European union. The last form of integration is the political integration where countries follow a full political and economic integration. The best example of political union is the united state of America.Regional integration between Albania, Montenegro, Kosova and Macedonia. Albania has a favorable geographical position since it links the west developed Europe with the postcommunist European countries, East Europe. According to INSTAT (2009), Albanian population is close to 2.8 million inhabitants. Neighbor countries are Montenegro with 0.7 million inhabitants; Kosova with 1.8 million inhabitants; Macedonia with 2 million inhabitants. All these countries separately are not attractive from global companies because of their small size.According to Krishna (2005), eco nomic integration or trade blocs are preferential trade agreements between numbers of countries to reduce or completely remove the barriers between members. Trade blocs increase the market power for each of the trading members. It increases productivity and companies take advantage of economies of scale. Also, it increases the competition between members of the market. Low costs will make the member countries firms more competitive in the non-member countries market. Small countries are the ones who take more advantage from the trading blocs than the large members of the agreement, by opening their product to a larger market. Companies take the decision to expand the business in foreign countries by considering the trading blocs and its main benefits.However, elimination of the trade barriers exposes the firm's home market to competition of other member and non-member countries, thus threatening the less efficient firms. A regional economic integration attracts the foreign investmen ts from non-member countries as firms outside the bloc seek the benefits of insider status by establishing manufacturing facilities within the bloc. In order for these countries, to attract global companies and increase the foreign direct investments needs and economic integration among all countries and effectively make them one country.Integration of Albania, Montenegro, Kosova and Macedonia will  create a market of 6.2 million customers. Also, the integration will standardize the import and taxation policy toward the non-member countries by eliminating the differences among countries.According to Yoshino & Rangan (1995), economic integration and opening to new markets there are challenges like differences in culture, political and economic environment, and regulation between countries. Cultural and economic changes product customization. In case of the economic integration between Albania and its neighbor countries, there are limited cultural differences. All countries have alm ost the same philosophy of the living, tradition and customs. The similarities between countries will help companies to minimize their costs by using the same brand, same advertising strategy and message across markets.Furthermore, countries show similarities in the economic situation.They are all low-income countries with the same needs and resources to accommodate those needs. This situation increases the demand for fast moving goods by representing big opportunities for global companies operating in these industries. There is not much to say about legal restriction since they do not exist. Legal and regulatory framework is in favor of foreign investment in the region.Typically, each form of economic integration confers benefits on the national economy but hurts particular sectors and communities within that economy. As a result, negotiating any form of the economic integration is not easy. According to Koyuturk et al. (2012), strategic alignments within a company are production, marketing, financial and research and development alliances.Production alliances happen when two different companies create a joint venture to produce a common product or facility. Marketing alliances between companies consist in sharing of the marketing services or consultancies. Financial alliances consist in sharing the risk of investment with other partners. R&D alliances refer to joint research with partners for developing new product or services. The above strategic alignment can be managed through shared management agreements where all the involved parties participate in the shared agreement fully and actively.Strategic alignments will decrease the company cost but will have an issue for the employees. Therefore, sharing of some of the functional services many companies will cut their labor force. Local government should create defense policies to mitigate the risks of the integration.Also, political  instability, high level of corruption and previous conflicts are the most difficult integration barriers.The suggested form of integration that will strengthen the position of these countries in the region and drive a competitive advantage is the political integration. It relates to cooperation between states and formation of state based regime. Also, it refers to the constitution of new political entities with a certain degree of independent from the individual states.Regional integration strengthens the political system the scope and the capacity of its decision making process. Furthermore, legal integration it is closely related to the political integration and involves the establishment of common legal rules and common legal systems for citizens of different states. The disadvantages of regional integration are, to begin with that to achieve it, you must sacrifice some degree of sovereignty. This could negatively affect conflict resolution. This loss of flexibility in creating solutions to problems is a huge disadvantage.ConclusionFollowing the main forms of integration the political integration is the most efficient one for the analyzed countries. Political integration of Albania, Kosova, Macedonia, and Montenegro will create new opportunities for these countries. It will increase the market power for each of the trading members and increase productivity and companies take advantage of economies of scale. Also, it increases the competition between members of the market.Lower costs for the member countries will make the member countries firms more competitive than the non-member countries market. Also, regional integration allows strategic alignments within a company in production, marketing, financial and research and development alliances. However, the political integration will strengthen the position of these countries in the region and drive a competitive advantage for the group of countries.

Keystone XL Pipeline Essay Example | Topics and Well Written Essays - 1250 words

Keystone XL Pipeline - Essay Example Despite the probable environmental impact it acts as the best safe alternative for shipping oil sands crude. Apart from its probable impact on the environment, the project bears major impact on the economy thereby making it a subject to economic debaters. Major economic impacts include effect on the cash flows and job claims. An analysis on the economic and environmental impacts of the project makes it less feasible for implementation. The following are the pros and cons associated. The Keystone XL provides a safer alternative for transporting sands crude thereby making the proposers to conclude on the environmental friendliness. Even though many environmentalist have argued against the environmental friendliness of the project, the study done by the State Department shows that it is better to have the project that the environmental significance of the project are far more valuable than when it is rejected. Whether in the absence or presence of the Keystone XL, there still will be higher production of the oil sands. This implies that there would be need for a railway to transport the crude oil in case the Keystone pipeline is not built. Considering the far much impacts which could transpire because of the recent high profile crude-by-rail accidents, Keystone XL is the most suitable alternative for transporting oils sands with lesser impacts on the environment. Intuitively, there is need to build the pipeline since it assures of reducing the environmental impact s which could result from use of railway (Chang, 9). Economically, the project proves viable in increasing the cash flows of the national economy and the overall number of investors in the country. Usually, pipeline is a source of steady and stable cash flows as compare to any other means of transport. In this case, a country has to consider the volume of oil to be transported and the immediate returns from the project. For the TRP, the owners of the

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Final Project - Term Paper Example Time management is the other key aspect for managing a project, which is where time estimates are given for various aspects of the project, and the project manager must continually monitor the time estimates to determine if they are accurate, liberal or conservative. Cost management is similar to time management, and this is where the costs are maximally reduced, so that profit is maximized. Quality management is the next knowledge area, and the way to measure quality is smart, measurable, attainable, realistic and timely. Communications management is where the stakeholders are apprised about the project with status updates, minutes of meetings, reports on deliverables, etc. Human resource management means that different team members are brought in, according to their expertise, during different specific moments in the schedule. Risk management is the increasing of the impact and probability of positive risks and decreasing negative risks. Procurement management is the process of det ermining what to procure and when, and this is where bids are solicited and sellers are determined . And integration management ensures that various elements of the projects are properly coordinated. This might involve making trade-offs among competing objectives and alternatives (PMI, 2013). These processes and knowledge areas will be applied to the situation at hand, which is a project where a data center will be moved for the customer who is Fiction Corp. Incorporating PMBOK Into the Final Project Initiating the Plan The first part of the plan initiation would be assembling a team that has the expertise that is necessary for this project. Since this project would entail a large amount of technical expertise, the team should consist of IT professionals which specialize in the different areas which are demanded in this project, as well as network managers and security professionals. Also, because the network is to be upgraded, the personnel to accomplish this also must be selected. Also, what must be determined is the implementers who need to be involved with the requirements and the design of the project (PMI, 2013). Then, going through the processes, the next step would be planning the project – the key objectives here would be time constraints and budget constraints, and the objectives would be to move the data center with a minimum of disruptions, upgrade the network and security of the data center. Because it is imperative that there be as few disruptions as possible, it is also imperative that all of these implementations occur in a timely manner. Therefore, when the next process occurs, which is executing the process, and people are coordinated and resources are also coordinated, the people who are coordinated must be informed of the main objectives of time and budget constraints, along with being informed about the details of the project. The resources which are amassed also must deal with these aspects of the project. These are all the three p rocess which go into the initial stages, because the other two projects – controlling process and closing process –

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Social week 6 - Essay Example Mortgage rates spiked up and stock prices fell when the news of tapering hit the market. The Fed though is denying such charges. It is very much unlikely that the Fed will begin its tapering anytime in the near future. But if we assume such an event occurs in the near future, it will put an end to the low interest rates in the mortgage market. The private market will then come back in and come back in strong. There is a huge gap of $85 billion a month and that has to be filled up by someone. When the news of tapering hit the market back in May, 2013, mortgage REITS which made profits by borrowing short term and lending long term mortgages, fell endangering the $ 40 billion industry (The Department of Treasury and U.S. Department of Housing and Urban Development, 2011). So if the Fed begins its tapering anytime in the near future, mortgage REITS have to raise their rates or rather will be forced to raise their rates or else their business will liquidate. The housing market will then t ake a big hit by the rise in the mortgage rates. The May, 2013 news had already made home buyers stop paying their mortgages and the home owners stopped refinancing. The housing market has clearly slowed down since May, 2013 and has showed no signs of regaining the past momentum (Wallison and Pinto, 2012). The US is the only country in the developed world to have such a troubled housing market. It is also probably the only developed country to have a major government role in housing policy. â€Å"Affordable housing† and other policies related to housing has turned the healthy US market into a financial ruin. Moreover the factors that caused the financial crisis are still in force and until those and the government’s role in housing are eliminated, it is very difficult for the US housing market to return back to normalcy (Wallison and Pinto, 2012). Housing finance is largely handled by the private sector in most

Rules of Evidence Assignment Example | Topics and Well Written Essays - 500 words

Rules of Evidence - Assignment Example ‘if it is offered to prove a fact that is at issue in the case.’(DiCarlo 2008) For evidence to be considered admissible it has ‘to show motive, plan, intent, or lack of mistake or, in federal court, to impeach a witnesss credibility (DiCarlo 2008). In the recent case against a man named Duena who is currently facing the death sentence after denied appeals he had been charged with killing police officer 1n 1997 .The evidence presented can be said to be both circumstantial and direct. Circumstantial evidence needs to be further interfered with so as to connect it to the actual crime. Some of the circumstantial evidence presented in this case is the murder weapon with Duena’s finger prints on it, another circumstantial piece of evidence in this case is the use of computer animation to illustrate that this crime was actually predetermined. It has also been determined that he was at the scene of the crime when the police officer was shot dead (Ansari 2012) According to Californian law substitutions of evidence are the alternatives to normal contemporary evidence provided in court to show prove that a crime was committed. These are useful to the court when circumstantial and direct evidence are both unavailable. The prosecution or defence is allowed to use substitutions of evidence when presenting factual information that is well known by the general public and can prove their arguments. Another substitute to evidence is when alluding to the testimony of an expected witness. Jury selection is the method of choosing individuals who will serve in a judicial trial. This procedure involves the participation of both the prosecution and the defence and the whole process is overseen by the judge on the particular case. Suitable group of jury members are presented before the prosecution and the defence in the presence of a judge, these potential jurors are each asked questions related to the case .This ensures there is no bias or personal affiliation with the case

Week 4 Student Blog Post Assignment Example | Topics and Well Written Essays - 250 words

Week 4 Student Blog Post - Assignment Example The primary collections in this museum include the history of Philadelphian Africa Americans back in the twentieth century and showcases about the city and episodes of the black panthers to sports paraphernalia (Macdonald 34). Upon visiting this museum, I will compose a song. The lyrics of my song will be driven mainly by the rich African American culture that I will find stored in the museum. In addition, the art of politics of the Philadelphian Africa Americans, which will be easily read from the scriptures, will heavily influence the choice of my song. Articles and publications, lectures, tours, outreach programs and workshops, so far provided in class, will be of great help for my assignment. Nevertheless, previous studies in anthropology and history will greatly enhance my ways of attacking this assignment as they provide an individual with interpretive skills. Visiting Philadelphian Africa Americans museum will greatly improve my ability to tackle the assignment as it this will offer me an opportunity for gaining practical skills and at the same time give more rooms for innovations and

American Civil War Essay Example for Free

American Civil War Essay From the start of the Civil War until the end of the Reconstruction period, America faced what can be considered a revolution. During this time, many social and constitutional developments emerged and brought great change to the country. Social developments that contributed to the revolution were the Freedmen’s Bureau, the Ku Klux Klan, and the Black Codes. Constitutional events that sparked dispute were the three civil rights bills, the Emancipation Proclamation, and the reconstruction. Between 1860 and 1877, both constitutional and social developments merged to created drastic changes that threatened the balance of life in the United States, causing revolt throughout many Americans and bringing about reform to the nation. Before 1860, the United States was split into two sides fighting for power: the North and South. Slave states and free states were constantly competing for representation in Congress. In order to reduce conflict, the Missouri Compromise and the Compromise of 1850 were passed. Tensions lowered to a degree, but the compromises only delayed the inevitable discord. State’s rights was a critical topic during this time period. The south believed that they had the constitutional right to secede. After Lincoln was inaugurated in 1860, seven states seceded from the Union. Four more states followed after that. South Carolina, in particular, felt their rights had been stripped off of them, and challenged the Constitution of the United States. Document A) South Carolina feared the north would gain enough power that they would abolish slavery in the south, crippling their slave-based economy. This sequence of events induced the bloody Civil War, later leading to the enactment of the Emancipation Proclamation, which meant the freeing of slaves that were still under possession in 1863. Eventually, the 13th amendment, which abolished slavery, was passed. The end of the Civil War meant the end of bloodshed but the start of reconstruction of the nation. Although slaves were finally freed, it was still rough life for the freedmen. Some blacks felt betrayed by their own government. They were baffled at the fact that they fought for their nation but could not vote for their representatives. In the petition to the Union convention of Tennessee, it is stated that blacks were treated unfairly in court, as the courts would not even receive â€Å"negro testimony. † (Document C) Gideon Welles, Lincoln’s Secretary of the Navy wrote in a diary that the Federal Government has no control of whether or not blacks can vote; he felt it was up to the states to decide. Document D) In attempts to unite the nation, several acts were put into effect. The Freedmen’s Bureau, for example, was set up to help blacks read and write in order to counteract their disadvantages in education. It also provided food shelter, welfare, and medical attention to those affected by the war. Unfortunately, some acts were not in favor of the blacks, such as the Black Codes. The Black Codes prohibited blacks from renting land or e ven borrowing money to buy land. It also forced them to sign working contracts, synonymous to slavery. President Johnson felt that the Black Codes were necessary because he did not want America becoming â€Å"Africanized. † In a petition to the commissioner of the Freedmen’s Bureau, some African Americans felt their promised rights were being neglected. (Document E) On the other hand, political actions were taking place in the struggle for equal rights for all Americans. Republicans were taking control of government and were also ignoring the orders of President Johnson. Radical Republicans were struggling for equal rights throughout nation. In 1866, the Civil Rights Act was created. This act stated that African Americans were United States citizens, shielding them from the Black Codes, and essentially overriding the Dred Scott decision. Shortly after came the Civil Rights Act of 1866. The changing of the Constitution to include the 14th amendment was considered revolutionary. (Document F) President Johnson was impeached in 1868 due to 11 crimes and misdemeanors. He was the first president in history to get impeached. After his impeachment, blacks now started to receive more equal treatment. Blacks were finally able to vote in the 1868 election, which ended up giving the Republicans a victory. (Document G) The 15th amendment was also added to the Constitution, prohibiting any state from denying a citizen the right to vote. Although revolution was going positively throughout, the creation of the Ku Klux Klan was a negative addition. Their goal was to terrorize and scare blacks by force. (Document I) In 1870, Congress decided to ban these secret organizations and enforce the 14th and 15th amendments through the Force Acts. Document H) All in all, between 1860 and 1877, both constitutional and social developments caused great reform in America. Revolutionary ideas such as the freedom of slaves, anti-secession, and rebellion played a key factor throughout these years. The once estranged country was back on track as a unified whole. African Americans, as a result of constant struggle, gained their rights and freedom. It is safe to say that the United States faced a period of reconstruction, which amounted to the shaping of the country.

Employee Issues And Failure Of Mergers And Acquisitions Management Essay

Employee Issues And Failure Of Mergers And Acquisitions Management Essay Globalization has demanded change in business practices because of its initiated competition (Schuler and Tarique, 2007). However, two streams can be found in the literature suggesting two different views about this phenomenon of globalization. One view suggests that it is being evolved to accomplish the power, politics, and wealth accumulation objectives and to do so, it has been instilled through carefully planned strategies, plans and tactics (Chomsky, 1999; Schuler and Tarique, 2007). Other view conveys a contrasting philosophy asserting that it is a social phenomenon which is benefiting the people around the globe by reducing monopolies of few (Castells,1996). Though these two views convey two opposite messages stating it political fixture designed for the purpose of gaining control of power, authority and wealth or a phenomenon which is operating to benefiting the people around the globe has instigated challenges for the business organization, somehow. Whether these are threats or opportunities, these are challenging (Mourdoukoutas, 2006). This phenomenon has changed the face of the world economy, and economic conditions of most of the countries are forcing the organization to change their business strategies. The organizations are using various forms of collaborations and alliances such as mergers, acquisitions and joint ventures inside and across the national boundaries in order to survive through the threats or to grow on the new challenging opportunities provided by globalization. Kogut and Singh (1988) state that collaborations such as joint ventures, mergers and acquisitions are the source of sharing and spreading and sharing risks over partners firms. According to Contractor and Lorange (1988) such collaborations allow developing and harnessing knowledge of the host organization. Choi and Hong (2002) suggest that collaborations can be for the purpose of knowledge or/and material flow. However, many of such collaborative efforts are not successful and according to Datta (1998), employee resistance is the key factor that hinders the success in such collaborations. And this essay, in fact, analyses the statement often employee-related issues prevent a merger or acquisition from succeeding in order to offer a better understanding of the factors of such failures by reviewing the relevant literature and using a case study. However, main focus of the essay is on collaborative relationships with main focus on joint ventures. Employee Related Issues and Failure of Mergers and Acquisitions As states in the given statement that often employee-related issues prevent a merger or acquisition from succeeding, Datta (1998) asserts that these are the conflicts and interventions arising from the employees that hamper the success of mergers or acquisitions. Kumar and Andersen (2009) state that these conflicts and resistance from employees stem from three levels due to their unwillingness to be the part of the new development and insecurity associated with this new formation. Das and Kumar (2009: 18-19) explain these levels stating that Pragmatic conflict occurs at the level of the functional specialists, moral conflict falls within the domain of alliance level managers, and cognitive conflict involves the top level managers, i.e. the individuals who are responsible for initiating and managing the alliance based strategy of the firm. Pragmatic conflict centers on issues of operational coordination among partner firms, moral conflict revolves around the appropriateness of behaviors among the partner firms, while cognitive conflict focuses on issues pertaining to the strategic rationale for continuing with or exiting from the alliance. Das and Kumar (2009) it is the top management which should be made responsible for their lack of vision about the intensity of change and then failure to manage change, resulting in failure of such collaborations. Change Management and Success of Collaborative Efforts Organizational change usually is perceived or rightly believed to contain threat or challenging opportunities of personal loss or rewards respectively as consequences of the change for the stakeholders. Lorenzi and Riley (2000) state that these threats or risks can fluctuate from simply disturbance of established routines to job insecurity if we talk about the internal stakeholders. While Hall (2002) classifies the change as shot tem and long-term and states the trade-offs between short and long run. Use of the term change management has been widespread in management writings and organizational studies (Ackoff, 1981, 1990). Interest of managers and researchers in change management topic has been stimulated by the commentary of Peter Drucker (1999), stating whether change can be managed at all or organizations are merely led or facilitated because of its episodes. In the words of Lorenzi and Riley (2000) Change management is the process by which an organization gets to its future state, its vision. While traditional planning processes delineate the steps on the journey, change management attempts to facilitate that journey. Consequently, implementing change instigates crafting a vision for change, and it proceeds further by empowering and allowing individuals to work as agents in the process to accomplishing that vision. These agents require realistic and future oriented strategies, plans and tactics to make successful transformation. However, since managing change is not simple and requires top managers to have a holistic approach which addresses all the major factors and disturbances arising from them. Factors Requiring Attention Kauser and Shaw (2004) that though employees can affect the success of such collaborations, however, there are plenty of factors that have more devastating impact on the success. In fact, firms investing in such collaborations face various uncertainties, resulting in affecting the intended outcomes. Gulati and Singh (1998) state that such uncertainties can stem from numerous factors that can be critical in hampering success in the firms with different norms, cultures, future plans and intentions. If these are the international joint ventures, various factors such as difference in national cultures, varying labour market conditions, different political and legal system can be crucial in defining success in collaborations (Bratton and Gold, 2007). Unavailability of timely and adequate allocation and sharing of resources is one of the main reasons that can cause some type of failure in such collaborative efforts and hence should be given proper focus while addressing the change arising from collaborations (Boddy et al, 1998). Given the dynamic and volatile business environment, timely and adequate allocation of resources, including human, capital an information, are vital in the success of mergers and acquisitions (Yan and Zeng, 1999). Earlier, Yan (1998) believed that bargaining power, control and trust are the main factors that can play central role in the successful mergers and acquisitions. Sirmon and Lane (2004) state that cultural compatibility should be taken care, while going into such collaborations. Lorange and Roos (1992) that these are the intentions of the collaborating firms that cause issues, resulting in impeding the success. Lorange and Roos (1992) further state that difference in objectives, and differing practices, norms, values also contribute towards failures. Fey and Beamish (2000) suggest that varying intentions, lack of cultural compatibility, and differences in objectives are the main factors that create uncertainties in employees, resulting in impeding the success. Hennart et al, (1998) collaboration without clear identification of need and objectives of collaboration, lack of concentration towards qualitative factors cause failures because it hinder effective decision making. Looking at the above statements and assertions, it can be argued though employees related issues can cause failures but it is the failure to manage change due to lack of vision to identify the factors and manage them is the main reason. Employee related issues such, according to Hennart et al, (1998), arise from lack of trust in the new working arrangements. If top management is able to remove these issues by giving incentives, ensuring security and involving them in the entire process of initiation and development of such collaborations, employees related issues can be solved (Sirmon Lane, 2004). Yan (1998) evidence that such failures are the result of incomplete contracts because of improper decision-making on behalf of the people who are supposed to manage change by efficiently responding to and reacting to changing business environment through proper attention to various internal and external factors. Sirmon and Lane, (2004) suggest that it is the lack of vision to predict the s everity of change which can result from the new business arrangements. These collaborations demand employees new roles and hence, human resource management should be well prepared to play its new roles in these changing business arrangements along with their traditional roles of hiring, training etc. Inability to do so means failure of collaborations whether it is mergers, acquisitions or joint ventures (Sirmon and Lane, (2004) and in this regard, role of human resource management need to be changed due to globalization and its wedged factors such as culture, political and social structures, economic conditions, labour market conditions, market size. Human resource management role should be sensitive to all the factors and effective in cross cultural environment, both organizational and national (Scullion and Linehan, 2005). For instance, national culture, defined by Hofstede (1980, 1991) as values, beliefs, and assumptions distinguishing people of different societies from one another, with Power Distance, Uncertainty Avoidance, Collectivism-Individualism, and Masculinity-Femininity dimensions affect the HRM role and practices in this era of globalization, where companies are driven to go limitless in terms of nationalities. For example, Budhwar and Boyne (2004) state that in India, hiring and promotion is completed keeping in view religion, caste system, and culture. (Clark Pugh (2000) suggest that feminine culture of Netherland is not suitable to use hard HRM. According to Hofstede (1983) and Blunt Jones (1986), that Kenyas culture showing uncertainty-avoidance dimension needs that organization should take care various ceremonies such as funerals and marriages. Similarly, tensions arsing form different organizational culture (in case if it is different) and national culture requires more than traditi onal HRM role (Cooke et al 2008). This means that in case of international collaborations, these factors can cause serious problems and hence organizations need to develop and deploy a policy that pay attention to these factors as well to avoid future harms. In case of mergers and acquisitions in different countries, political, legal, and social structures influence HRM role and functions (Noe Ford, 1992). Economic system of a specific country with different governance structures is also hard on playing its cards to alter the HRM role and practices in its own terms. Labour Market conditions, (Ali, 2000), market size (Tayeb, 2005) also needs different motivational and promotional strategies as same standard for all markets cannot work. Same quantitative target will not work for sales persons in London and Lancaster. Role of unions is also important in shaping HRM decisions of selections, promotions, wages (Collins et al, 1993), and motivation (Rosen et al, 1986) It means that new business environment may require different business practices, demanding different role of HRM and that is its role envisioned in strategic HRM (SHRM. Bratton Gold (2007: 56) define SHRM as The HR polices and process that result from the global competitive activities of multinational companies and that explicitly link international HR practices and processes with the worldwide strategic goals of those companies It means that HRM is no mere an administrative facility but has received or expected recognition as a strategic business collaborator. Companies are  actively relating  the HRM in the development and implementation of both people and business strategies (Christina Evans, 2003). It means that HRM needs to manage people and proactively support the overall management and decision making of the organizational. According to Guest (2002) managing people includes ensuring commitment from employees, building high trust and flexible roles, creating focus on value s, flattering hierarchical structure of the organization, and ensuring autonomy at national level and enhancing self control. In the era of globalization, where new forms of organizations are unavoidable, Christina Evans (2003) goes further to explain the HRM role stating that it contributes to overall development of the organization through performance measures, agenda building, translating strategic level strategies into HR deliverables. Holbeche (1999) suggests that role of HRM is strategic rather than operational, proactive rather than traditional reactive, changing instead of stagnant, and of employee champion. Ulrich (2000) suggests that HRM role in competitive world is turning knowledge into action. Keeping in view the new role of HR, this essay suggests that it is not the employee related issues that cause problems; rather it is the ineffective role of HR that can cause predicaments for the collaborating firms. Black and Gregersen (1999) state that if seen from individualistic perspective, Resistance from the employees to adopt new practices, procedures and values can be a problem and can be a factor in failure of mergers. There could be conflicting interests of the employees of local and foreign companies, which could enhance the complexity of the task for expatriatesAnd this signifies the fact that the employees involved in such collaborations, especially expatriates, require interpersonal and cross-cultural skills, along with comprehensive understanding of the foreign culture to efficiently work with employees of different cultures The above statement brings attention to the fact that though employees resistance and issues related to employees such as lack of strong interpersonal skills and inability in understanding of different cultures are vital in creating troubles in the success, it also bring attention to the fact the important new role of HR to train them and make them suitable for such unavoidable assignments, in the current business scenario. Hence, once again, this essay argues that if we look at the surface, it looks the employees related problems; however, in-depth investigation tells us that it is the over-all ineffectiveness of the organizational policies and practices that hinder success. Luo (1998) asserts that success of such arrangements depends upon the right choice of partner. Luo states the partners selection significance stating various factors vital in this regard including organizational practices, routines, norms, values, culture, structure, government connections, effectiveness of distribution channels, skill and capacity development, position and experience in the industry. Brouthers et al., (1995) propose the four cs formula for the success such arrangements, and these four Cs are compatible goals, complementary skills, cooperative organizational culture, and commensurate risk-taking orientation. This suggestion of Brouthers et al., (1995), further signifies the value of clearness in business objectives, responsibilities and understanding of the partners. Zeira, et al., (1997) found significant positive relation between objectives clarity and and success of mergers and acquisition. For the purpose of re-iterating this point, survey results of Thompsons (1996) study identifies that cross-cultural communication issues, lack of business objectives clarity, and intentions of partner firms create fatal towards the success of such collaborations. According to Thompsons (1996; 145) Disagreements and misunderstandings over the business objectives of the relationship and over business strategies were most fatal and threatening to the success Kealey et al., (2006) suggest that issues arising from environment create the major hindrances and, to a particular level, these problems can be alleviated, and the level to which these problems are alleviated, determines the failure and success. Kealey et al., (2006) identifies some such issues which have been stated as under: Congeniality of the organizational cultures and compatibility among them General economic health of the economy (host) along with international economic conditions, resources availability such as financial and human, and consumer demands and competition. Regulatory and law and order situation of country (host), such as foreign investment restrictions, import and export controls and policies Friendliness, health, and effectiveness of firms Social and political climate, and ability of the management to manage change pro-actively Looking at the above discussion and emphasis on change management, role of human resource management and external environmental factors along with clarity of objectives, trust, and intentions of the partners, and significance of selection of firms for such collaborations, this essay argues that though importance of employee related issues can be a problem in the success of mergers and acquisitions is always their but these are issues which are the result of improper HR policies, ineffective change management. Case of Rolls-Royce and BMW It was, in fact, joint venture resulting in acquisition between Rolls-Royce and BMW stared in 1989 and broken, after 10 years, in 1999. Habib and Mella-Barra (2002) express their point of view about termination of this collaboration stating that it is possible that the venture ended because of failure to cooperate on the part of the two partners, such an explanation is unlikely given that BMW was paid in Rolls-Royce shares, which have made BMW one of the largest shareholders of Rolls-Royce, with a 10% stake. From this termination it is also argued that Rolls-Royce wanted to acquire know how the pertenr regarding to re-enter the aircraft engine manufacturing after long time because Rolls-Royce was not in the business before the initiation of joint venture. And when Rolls-Royce believed that they have gained substantial knowledge of how to run the business independently, it terminated the collaboration. While Minehart and Neeman (1999) suggest an another reason stating that this close was consequence of various conflicts arising from lack of consensus on investment decisions and trust and together with imbalance in powers of decision making. Therefore, if combined these stated reasons, it was the differences in intentions, goals, conflicts, power disparity and lack of trust that cause termination of this venture. Hence, it was not the employee related issues rather some organizational level issues which caused the end the collaboration. Conclusion This essay analyses various factors which can cause failures to mergers, acquisition and particularly joint ventures. In fact, this essay analysed the statement often employee-related issues prevent a merger or acquisition from succeeding to reach a certain conclusion. This essay argues that though employee related issues play detrimental role in such collaboration, however, these issues are the result of the certain inefficient practices including inability to manage change, ineffective HR policies and practices, lack of clear objectives etc. These factors also include intentions and lack of trust and differences in objectives. The case of Rolls-Royce and BMW confirmed above ideas suggesting that, it has been the differences in intentions, goals, conflicts, power disparity and lack of trust that cause termination of this venture. Therefore, these were not the employee related issues rather some organizational level issues which caused the end the collaboration.