Strategic Alliances and International Mergers and...

Strategic Alliances and International Mergers and Acquisitions in the Modern Global Business Environment The modern globalized world has triggered stark change in the actions of many of the actors in traditional society. One such actor that has embraced this change and recognized its benefits is in the area of international business. With globalization providing access to a myriad of new networks, markets, and technology at an unprecedented pace, international business firms have aligned themselves to capitalize on these new opportunities. While inter-firm alliances, mergers, and acquisitions are certainly not a new innovation in international business practice, the modern international business environment has seen a significant†¦show more content†¦However, with the rise of globalization, technological innovation and communication networks have grown grew to lead in the formulation of â€Å"alliance capitalism† (466). Alliance capitalism has been brought about by the changing climate of the world economy, mainly as a result of globalization and technological innova tion. According the Dunning, the â€Å"critical feature of this new trajectory—which is essentially the outcome of a new series of landmark technological advances and of globalization of many kinds of value added activity—is that it portrays the organization of productions and transactions as involving both cooperation and competition between the leading wealth creating agents† (467). This shift in ideology to a more cooperative approach over an ownership-based mentality to global business has created a new set of motivations to arise of out inter-firm alliance, mergers, and acquisition activity. In their essay entitled, Alliances, Acquisitions, and Multinational Advantage, Sarianna Lundan and John Hagedoorn, agree with Dunning’s assessment that there has been a fundamental shift in the world economic environment. According to Lundan and Hagedoorn, â€Å"the balance has shifted from the exploitation of ownership advantages abroad to, first, improving the efficiency of the existing configuration of activities, and, finally, to the active acquisition of newShow MoreRelatedWalmart Stores, Inc. Relations With Suppliers943 Words   |  4 Pagesconstructs its associations with suppliers in light of legitimate, proficient and reasonable business practices (Wikinvest, 2005). The choice of suppliers is normally made on the premise that they meet the requisite criteria, including - quality, competitive pricing, delivery, adhering to a time schedule, and suitability of merchandise (Wikinvest, 2005). 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