Industrial Organization Economics Essay Example | Topics and Well Written Essays - 2000 words

Industrial Organization Economics - Essay ExampleGlobalization has led to opening up of borders to drive trade. Those countries and companies that are ahead in the game realize the benefits compared to the laggards. Some of the strategies that nations have adopted to neutralize the effects of competition arising from globalization include creating barriers to ledger entry, strategic entry deterrence as well as spinal fusions and acquisitions. The rest of the paper testament outline how the three factors influence industrial organizations as well as their impacts. It will achieve it by discussing three newspaper articles on the same subject.In an article by Gelles (March 12, 2015) in the New York Times titled, Uncertainty weighs on Endos higher bid for genus Salix Pharmaceuticals confirms the competitiveness of merger and acquisition. The article talks about the competition existing between Endo International and Valeant Pharmaceutical over who acquires Salix Pharmaceuticals. Endo has offered $ 175 per share, compared to $ 158 per share that Valeant offers (Gelles2015). It implies that the company that offers a higher bid per share may acquire the parent company and expand the operations. However, many factors hinder the merger and acquisition. These factors are related to policy issues. The board of the parent company has to agree to the offer because the deal will be binding to all the stakeholders including shareholders of the acquired company. In this article, battalion learn many issues regarding the topic or merger and acquisition. It is contrary to earlier knowledge that acquisition or merger was an arrangement of two companies this article provides demonstrate of a third party. Third parties can come in if they offer a higher bid than what others offer. Endo offered a higher bid than what Salix had anticipated, which gives it a greater chance of acquiring the new investment or the company (Gelles 2015). It is a new scenario rarely experienced among accompanies.In the article by