I would choose to acquire a company within the European Union

I would choose to acquire a company within the European Union. The EU is a single market, and it is known as the largest market platform. Thus, choosing to do business with a company within the EU will reap more benefits comparing to a company that is outside the EU. One of the benefits is that since the EU is a single market, there are no trade barriers (Greenwood, 2017). Hence, it will be easy to expand the company to various countries without restrictions. In addition to this, since there is no additional taxation, the price of food and goods within the EU countries is relatively low; thus, giving the EU companies a competitive advantage. Secondly, the EU provides a large market which leads to greater competition; thus, this will result in the improvement of the business as well as increase the number of consumers. The EU enhances standardization of transactions and eliminates cartels and monopoly companies. Therefore, choosing to work with a company within the EU will protect the industry from exploitation and enhances a fair marketing platform.
Additionally, some of the reforms by the EU makes it easier for countries to trade without border limitation. For example, the introduction of the euro allows companies to trade with a single currency (Valdez & Molyneux, 2015). The EU has also reduced the paperwork for companies by harmonizing safety and technical standards. Therefore, acquiring a company within the EU caters for most of the employees’ requirements, enhancing the business partners to have a smooth start. The EU enhances open and free movement between countries for all citizens. Hence, this opens education and job opportunities for most individuals which makes it possible for the company to hire skilled professionals from all over the globe. The has set aside strict guidelines that prevent countries from getting into economic and political problems within one another. Thus, the business operations are protected from unforeseen conflicts, and the company runs smoothly throughout the continent.
2. Describe the advantages and disadvantages of the choice you made.
One of the advantages of acquiring a company within the EU is the EU company law. The EU harmonizes the company law across Europe making it easier for companies to access funding, and to have effective and clear legislation. The EU company law also protects the employees, creditors, and shareholders reducing the burden of administration on the business. Another advantage of working with a company within the EU is that there the anti-corruption and anti-bribery compliance. Countries managed by the EU enhances transparency in all their business dealings. While working with the EU, a company has a right to select a business-friendly environment based on the country of origin. Therefore, if a company is situated in one of the EU member countries, the firm can leverage the opportunity of using it preferable regulation to trade with other members of the EU. Companies within the EU are assured of long-term stability and a strong institutional framework. The EU has preset policy arrangements which guarantee security for the investors making them aware of what to expect before joining or investing in the EU member state.
One of the disadvantages of a company within the EU is the recent financial crisis. In 2008, there were financial crashes in the core members of the EU, Portugal, Italy, Germany, and Greece and the EU is yet to recover from those crises (Greenwood, 2017). Due to the severe financial problems, the EU governments have constantly been changing causing political instability and financial uncertainty. Another challenge the nationalistic tendencies caused by the rise of populism. Most parties within the EU have shown signs of withdrawing for the trade agreements set aside by the EU, which might affect the stability of the EU nations. The decisions, rules, and policies set by the EU also set by the EU aim at improving the union and the individual countries. Thus, people who invest in smaller countries often suffer as their left unheard with no one to cater to their business demands.