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Saturday, July 02, 2011
Posted In
Eco
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Discuss Question:
Suppose government wants to encourage textile and clothing domestically, but its price is higher than its imported substitute. Government can use import tariff or quota, on what basis government will decide either to impose import tariff or fix quota to get maximum benefits?
Note: Your solution must be within 75-100 words.
Friday, July 01, 2011
Posted In
Fin
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Semester “Spring 2011”
“Corporate Finance (Fin622)”
This is to inform that Graded Discussion Board (GDB # 03)
will be opened according to the following schedule
Schedule
Opening Date and Time
June 30, 2011 At 12:00 A.M. (Mid-Night)
Closing Date and Time
July 04, 2011 At 11:59 P.M. (Mid-Night)
Topic/Area for Discussion
“ Mergers & Acquisitions ”
Note: The discussion question will be from the area/topic mentioned above. So start learning about the topic now.
Identify the type of merger in each of the following cases:
Case 1: (Conglomerate Merger)
Case 2: (Congeneric Merger)
Case 3: (Horizontal Merger)
Case 4: (Horizontal Merger)
......................
SOLUTION:
Case 1 = Conglomeration
Case 2 = Product-extension merger
Case 3 = Market-extension merger
Case 4 = Horizontal merger
Conglomeration - Two companies that have no common business areas.
Product-extension merger - Two companies selling different but related products in the same market.
Market-extension merger - Two companies that sell the same products in different markets.
Horizontal merger - Two companies that are in direct competition and share the same product lines and markets.
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Case 2 is VERTICAL MERGER
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1-Conglomeration
2-Vertical Merger
3-Market-extension Merger
4-Horizontal Merger
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2nd Is Vertical Because this type of merger involves a customer and a company or a supplier and a company merging. Imagine a baseball bat company merging with a wood production company. This would be an example of the supplier merging with the producer and is the essence of vertical mergers.
::::::::::::::::::::::::::::::::
Case 1 = Conglomeration
Case 2 = Product-extension merger
Case 3 = Market-extension merger
Case 4 = Horizontal merger
Conglomeration - Two companies that have no common business areas.
Product-extension merger - Two companies selling different but related products in the same
Market-extension merger - Two companies that sell the same products in different markets.
Horizontal merger - Two companies that are in direct competition and share the same product lines and markets.
::::::::::::::::::::::::::::::::::::::::::::::::::::
Case 1 = Product-extension merger / Conglomeration
Case 2 = Vertical merger
Case 3 = Purchase Mergers
Case 4 = Horizontal merge
