Case Fairchild Water Technologies, Inc.

CLEAR is great for those individuals that would like to use this product as a supplement to their daily vitamin regimen or as an additive to their green tea to maximize absorption of the antioxidants and other wonderful health benefits in green tea.

The U.S. government encourages the U.S. companies to sell their products in other countries because other countries may offer better opportunities for growth.

• Transaction structures—the takeover could involve a cash offer, a share offer, an asset swap or a combination of these methods. Need to consider legal, taxation and accounting issues.

2. I will define licensing agreement: in this case we are talking about an international licensing agreement which allow foreign firms, either exclusively or non -exclusively to manufacture a proprietor’s product for a fixed term in a specific market. Licensing is a relatively flexible work agreement that can be customized to fit the needs and interests of both, licensor and licensee.

According to Wheelen and Hunger an acquisition is a growth strategy that occurs when a company absorbs another (usually smaller) company as an operating subsidiary or division of the acquiring corporation. Acquisitions usually take place with companies of different sizes and they can be hostile or friendly. Acquisitions can also be a good way to grow

c. they believe they can increase the efficiency of the acquired unit by transferring capital, technology, or management skills.

Identify the potential risks which affect the company and manage these risks within its risk appetite;

The United States today is known as an industrialized nation. This means that we have a high standard of living. However, there are many countries that do not have a high standard of living and they are called developing nations. Many things could keep them from becoming a developed nation such as no international trade, lack of factories, and a lack of tariffs.

Sometimes a firm will be touted as a possible acquisition candidate because the replacement value of its assets is considerably higher than the firm's market value. For example, in the early 1980s, oil companies could acquire reserves more cheaply by buying out other oil companies than by exploratory drilling. However, the value of an asset stems from its expected cash flow, not from its cost. Thus, paying $1 million for a slide rule plant which would cost $2 million to build from scratch is not much of a deal if no one uses slide rules.

India the world's seventh largest country and the second most populace nation has been a destination of unrealized potential. In the recent past it has seen as stir of economic activity changing the prim face of the nation. The country has had breath taking reforms bringing in foreign direct investments and foreign institutional investments into the country at a brisk pace. Today India is one of the most exciting emerging markets in the world to be in. A new

Why is it that some countries are classified as developed and others not? What is the criteria used to determine this? Some people believe that within the criteria to evaluate a country’s development, democracy and economic development must be taken into consideration, and that a link exists between them. Democracy can be defined as a form of government in which people choose their leaders by voting, it also implies equal rights and treatment. (Merriam Webster n.d.) By the other hand, economic development can be defined as the progress in an economy referring to an improvement of living standards, the adoption of new technologies and the transition form an agricultural to an industrial based economy. (Business Dictionary n.d.)

Developing nations are filled with hope and aspirations of one day becoming a wealthy, dominating, and influential country. These nations can sometimes be unsafe, difficult to live in, and hard for workers to earn good compensation for their labor. On the other hand, living in a developed nation has many upsides. Developed nations are wealthy, which in turn have good infrastructure, labor and worker laws, and have less crime.

She decided to venture into the water industry with the existing expertise of natural gas that Enron had already acquired. She started the Wessex Water Co. which was headquartered in Bath, England. Enron purchased Wessex in July 1998 for a price slightly under $3 billion. The venture into the water industry was a good idea as water treatment requires a good deal of energy which was one of Enron’s specialties. Moreover the water industry was a regulated utility and the possibility of a deregulation provided an opportunity to cash in on the knowledge of the profit opportunities under deregulation. Wessex was changed to Azurix after being acquired by Enron. Azurix purchased a water company through an auction, to supply water in the Buenos Aires area. But its bid was three times higher than the second highest bid which did not reflect as a wise purchase price. Further problems arose when employees of the old water company started deleting names and records of their friends and relatives so that there was no way Azurix would know of their existence and bill them. Also people who came in to pay their bills had no clue where the Azurix offices were located. The conditions worsened when there was an algae bloom in the water system which angered the customers and they stopped paying their dues. In the spring of 1999 Azurix raised $700 million through an IPO but the money did not last long as Rebecca and Azurix were spending $100 million per month. Azurix sold $600 million junk bonds

• There is an imbalance in levels of expertise, investment or assets brought into the venture by the different partners.

For any company going out for the foreign market is because of any one out of globalization, reducing tariff all over the world, to increase the market share, saturation of the local market, for getting the economies of scale of production, to use their excess capacity and use the resources where it is available at law cost.