Cross Border Acquisition And Their Role In Globalization

Balacouhika K, LLM, School of Legal Studies, Reva University, India

ABSTRACT

Cross-border mergers and acquisitions (M&As) play a vital role in the process of globalization, as they allow corporations to enter new markets, get cutting-edge technologies, and benefit from economies of scale. These transactions promote the integration of markets, transfer of resources, and innovation, hence improving global competitiveness and efficiency. In addition, cross-border mergers and acquisitions (M&As) promote economic growth in host nations by attracting more foreign direct investment (FDI) and generating employment opportunities. Nevertheless, they also provide difficulties such as assimilation into different cultures, adherence to regulations, and exposure to geopolitical hazards. Strategic preparation and meticulous execution are essential for successful cross-border mergers and acquisitions, as they aim to maximize their beneficial effects on the global economy.

Keywords: Foreign direct investment, FDI Policy, Foreign exchange management act (FEMA), Foreign exchange regulation act (FERA), Mergers and Acquisition, Taxation Agreements.