ECON

Description

Search the Internet and identify a corporate merger that has taken place over the last 20 years. In report form using APA citation answer the following questions based on your research. As you research the merger reflect on Week 4 End of Week activity as it relates to the importance of the HHI and whether government regulators would permit the merger (Table 2). Download this file for Table 2 What companies were involved in the merger? What laws were mentioned or discussed as a result of the merger? Which law(s) from the chapter do you believe pertained to the merger? Based on your research, did either company have the absolute or comparative advantage in their industry? Based on your research what percentage of the market share did each company have prior to the merger? What type of merger was formed (vertical, horizontal, conglomerate)? Vertical merger – firms engaged in different aspects of a process (example a manufacture and a retailer) Horizontal mergers – firms in the same industry form one larger company Conglomerate merger – companies in unrelated industries Has either company attempted a merger with other companies? If so, did the merger succeed or fail? Analyze the merge as to whether the merger resulted in positive or negative effects upon others firms in the industry and the industry’s customers. Summarize your research as it relates to the pros and cons of the merger based on your understanding of scarcity, supply & demand, elasticity and consumer choices.