International Monetary Policy : Effects On Cross Regional Mergers And Acquisitions

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International Monetary Policy: Effects on Cross-Regional Mergers and Acquisitions in 2015 The Murdell-Flemming Trilemma or “Unholy Trinity” states that a government can only generate policy that satisfies two of three general desires; these desires are exchange rate stability, capital mobility, and domestic monetary autonomy (Cohen, 2010). Concerning the China, the general international monetary choices should be capital mobility and domestic monetary autonomy. In an era where multinational corporations are increasingly looking to cross-regional mergers and acquisitions to create value, it is more important than ever for China to retain capital mobility and domestic monetary autonomy (Cross-Regional, 2015). Through an examination of multinational corporations and domestic monetary policy choices, the need for capital mobility and domestic monetary autonomy become clear. This need is proven through the effects these policy choices have on domestic monetary value and the subsequent consequences these effects have on cross-regional mergers and acquisitions. The year, 2015, has seen a resurgence in cross-regional mergers and acquisitions (Cross-Regional, 2015). Cross-regional mergers and acquisitions are on track for activity to increase by 18% year-over-year (Cross-Regional, 2015). Cross-regional mergers and acquisitions could reach $733B if current momentum continues; this would represent 23% of all merger and acquisitions activity across the globe (Cross-Regional,
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