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The Takeover Process
Question | Answer |
---|---|
The increasing number of merger activity during the past two decades is related to the 10 powerful change forces #1 | Technological Change |
The 2nd powerful change force | Economies of scale, economies of scope, complementarity, and the need to catch up technologically. |
The 3rd power change force | Globalization and freer trade(General Agreement on Tariffs and Trade(GATT) |
The 4th power change force | Changes in industrial organization |
The 5th power change force | New industries |
The 6th power change force | Deregulation and regulation |
The 7th power change force | Favorable economic and financial conditions for much of the past two decades. |
The 8th power change force | Negative trends in certain individual economies and industries |
The 9th power change force | Widening inequalities in income and wealth |
The 10th power change force | Relatively high valuations for equities during the 1990s |
Technological change | #1 change force. Includes computers, computer services, software, servers, and many advances in information systems, including the internet. |
Globalization and freer trade | #3 change force. Improvement in communications and transportation have created a global economy. Nations have adopted international agreements such as the General Agreement and Tariffs and Trade(GATT). |
Deregulation and regulation | #6 change force. euro was launched in 1999 and became the sole currency for the 12 participating member states in 2002, continuing to result in an opening of boundaries & restrictions through Europe. competition produced deregulation in major industries. |