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International Business Report - Electron Ltd

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Added on  2020-01-07

International Business Report - Electron Ltd

   Added on 2020-01-07

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Introduction to InternationalBusiness3
International Business Report - Electron Ltd_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................3TASK...............................................................................................................................................31. The different suitable legal structures for implementing the partnership................................32. Different methodologies of acquiring the manufacturing facilities from Cybernetics AD bypartnership and applicable legislation..........................................................................................63. Legal framework regulating the choice of law, jurisdiction, substantive rules etc..................8CONCLUSION..............................................................................................................................11REFERENCES..............................................................................................................................123
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INTRODUCTIONWith the increasing pace of globalization, businesses now focus on introducing theirbusiness activities in international market beyond the political boundaries which mainly aims atincreasing the rate of profit (Cravino and Levchenko, 2015). International business mainlyconsists of activities that involve transactions of goods and services across the national andinternational boundaries for the purpose of expanding production level across the boundaries.Therefore, it is essential to manage different activities across the globe so that they can easilyachieve their global objectives. Presently, the report focuses on Electron Ltd. which is an electronics manufactureroperating their services in UK domestic market. The management of company is in the favour toform a strategic partnership with the Microdata limited liability company that is beingestablished beneath the laws of Belgium. The company Electron Ltd is focusing on introducingtheir new line of consumer’s electronic products that is Circuit 3000 series by using patents thatare owned by both the companies to establish sales and distribution network within the Europeand United States. Therefore, the report will also understand different legal structure that is appropriate forboth companies to sustain in the competitive environment by consolidating all manufacturingand sales activities of both the companies across the world. The report focuses on differentmethodologies by which Electron Ltd. can acquire manufacturing facilities include leasing, hirepurchase, merger and acquisition etc. Lastly, the report will also focus on determining the legalframework related with setting the partnership for enabling the sales and distribution networkfor the new consumer electronic products of Electron Ltd. that is Circuit 3000 series.TASK1. The different suitable legal structures for implementing the partnershipElectron Ltd. is an electronics manufacturer operating in domestic market in the UKregion (Balakrishnan and Moonesar, 2015). With the increasing prospect of globalization in themarketplace, company's general assembly has been voted in approval of forming strategicpartnership with the Microdata Company so that they can be involved in the cross boundariestransaction of goods, services and resources. Through enabling partnership among both the3
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companies they collaboratively focus on introducing new line of products that is “Circuit 3000series” of consumer electronics by using patents that are mainly owned by both the companies sothat another enterprise or electronic manufacturer may not copy the products (Kostecki andNaray, 2007). While implementing the partnership between Electron and Microdata there are variouslegal structure that may be used by both the companies so that they can successfully accomplishboth the phases mentioned in the Memorandum of Understanding which is being signed by boththe companies (Deese and et.al., 2014). The company is interested in introducing new range ofconsumer’s electronic products that is Circuit 3000 series as well as joint acquisition with themanufacturing facility in Bulgaria which is owned by Cybernetics a Bulgarian corporation forestablishing network of sales and distribution in Europe and United states. While second phasefocuses on merging or consolidating the manufacturing as well as sales activities of both thecompanies within the next five year to introduce their business activities in the internationalmarket (Aswathappa, 2008). Therefore, for enabling implementation of partnership legal firmhas identified different suitable structure for both the phases of partnership that is-a) Merger between Electron and Microdata One of the effective strategy or structure that is being used Electron Ltd. is mergerbetween both the companies that is Electron and Microdata. Under this legal structure onecompany wholly transfer their ownership as well as surrender their stock to another company inorder to achieve or increase their financial and functional capability of both the enterprises.According to Ricks (2009) certain advantages of merger activity to both the companies are ithelps in enabling the new structure that supports in bringing new and innovative ideas andthought which will support the organization in introducing new consumer electronic productsseries in the market (Ricks, 2009). Furthermore, merger of the two companies also result incollaborating different culture of the enterprise and it results in bringing positive change amongemployees and overall company which helps in effectively establishing network within the otherregion. On the contrary, Dlabay and Scott (2010) has stated that merger structure may also resultin getting down the morale of employees as through restructuring the employees those who arerendering services in the manufacturing department may result in changing their behaviouralpattern that ultimately affect their morale and mental state (Dlabay and Scott, 2010). In addition3
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