The ACME has been acquiring and talking with the two different European firms: the JEL industries which headquartered in a country that is part of the European Union while the DBC industries headquartered in a European country that does not belong to the Union and does not use Euro as their primary currency. I recommend the organization or the firm outside the European Union Zone because it considers other currencies by not just using a primary currency like Euro. Because I believe that an industry which has the determination to be competitive worldwide doesn’t rely on involving in a certain kind of Union. Not just one currency can help boom and stabilize the economic industry. If an organization or industries wants to expand worldwide, they should also consider the currencies of other countries not just by using a Euro currency. For instance, DBC industries know that the absence of foreign exchange market rates and inconvertibility of domestic currencies will result to an impossible international trade and expansion. Meaning, the economic condition will deteriorate because of the isolation of a particular country from the international monetary. Running a business in a country outside the European Union will have the possibility to rise and expand worldwide. Eiteman, D. K., & Stonehill, A.I., & Moffett, M.H., (2004). Multinational Business Finance. Pearson Addison Wesley.
In regards to this, the consideration of other currencies will open a portal of opportunities to the world which is the opportunity of buying and selling and exchanging of products. Thus, creating a foreign exchange markets and the exchanged of currency is introduce which means that there will be a market-oriented economic reforms. Also the consideration of exchanging rates in the economy where my company belongs and engaged will be a great help. There is no common market and economic monetary union so you can expect that the competency is present. There is also a possibility for the company to sell the products with a deserving higher price and not just giving prices for the sake of the policies and activities that is being implemented. We all know that competition is always present not just in industries but of everything so why do I have to sacrifice the company’s products, when I know that it has the right and competitive quality like others. The best advantage for this is the integration of the company to the world economy. However, the disadvantages of this are the flexibility of changing the prices of the goods in the market is not a good sign for the producers or manufacturers. Maintaining the exchange rate at the wrong level can also cause harmful variations in a country’s consumption and resource allocation. The overvaluing of the exchange rate is also risky because it can contribute to inflationary pressure and should require a reversal of liberalization in domestic prices. Eiteman, D. K., & Stonehill, A.I., & Moffett, M.H., (2004). Multinational Business Finance. Pearson Addison Wesley.
And if ever my company I acquired primarily sold its products within all countries of Europe, I will not change my decision on the way my company was designed. I know that people who belong to country under European Union says that it’s worth it because they had experienced the harmonized and balanced development of market activities. The corporate governance covers the agency theories, the composition and the control of boards of directors and the historical, cultural and institutional variables. But, we also have to consider that an international company that links worldwide differs from a domestic company because of the differences in culture, history and institutions, corporate governance, foreign exchange risk; political risk; and the need to modify domestic finance theories and financial instruments. No matter what, I will still hold and stand on the company’s ways and style in attracting buyers or consumers its policies, aims and the goal of the company for the good of the people. I believe that if a competitive and ambitious company wants to achieve its goals and aims it should start at the lowest level which is the getting of incomes from the products which is sold to the locale. But, how about selling their products outside a European Union for sure, the demand of their products will decrease due to its currency value in exchanging foreign rates. Grubacic, S. (2000). Real Exchange Determination in Eastern Europe. Atlantic Economic Journal. 24(9), 12-20.
And if my company primarily exported its products to Far East nations and the U.S, well, much better for my company because through the products that were being exported there will be more opportunities and clients to come. Market demands will increase and the production also will increase thus, resulting to the addition of the workers. McCormick, M.J. (2002). A Primer on the European Union and its Legal System. Army Lawyer
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