G7 During COVID-19 Condition
The outbreak of COVID-19 pandemic led to economic stress throughout the world. The collaboration of economic blocks and management of trading activities were lessened by the pandemic. However, the G7 summits were less affected, the coordination of various activities such as those related to reviving the economic status of member states was easily initiated. Most of activities were done through web services to ensure the interconnection of various activities. (Rufai & Bunce 2020). The G7 meets every year to evaluate the economic agenda and create common policies which are geared towards strengthening cooperation.
As part of reinvigorating economies, G7 summit was designed to ensure better communication and securing of future prosperity. The major goals relating to higher demand for COVID-19 vaccine doses. The pandemic had less impact on G7 coordination since there is a systematic channel of communiqué, which improves interpersonal communication amongst the seven leaders (Financial Times,2021). The ideal situation of COVID-19 created unified environment amongst the member states. The need to create an advanced solution to this pandemic helped in resolving other challenges such as cybersecurity and promotion of free and fair-trade activities.
The first G7 meeting since the outbreak of pandemic occurred on 11th to 13 June 2021.Given the unprecedented harm COVID-19 continues to cause, this summit was perceived to be the most important gathering in its history. Projecting on the most important aspect of ending the global pandemic, the focus on scaling up vaccine manufacturing and distribution across the world (Akhtaruzzaman et al.,2021). During the initial stages of pandemic outbreak, strict measures were initiated which limited physical gathering of G7 members. The optimal measures were coordination of activities through social media until the first summit in 13th June 2021.Evaluating the economies of scales associated with this summit, initiates the need for subsequent examinations in case of future global challenges.
DSV Panalpina to Acquire Agility’s Global Integrated Logistics Business
Business acquisition is one of the modern strategies in improving performance and ensuring highly competitive strengths in the operative environment. The acquisition of Agility’s global Integrated Logistics Business improves the economies of scale and helps in diverging business activities to access varied clients. The optimal gear in a combination of business is the improved revenues and protection from stiff competition from external environment.
The deal creates an important value and inscriptions a new journey in Agility’s economic activities. This aspect will also help the company in discovering opportunities between DSV and its other businesses with promise area of future collaborations. The agreement by Agility and DSV is set to improve the equity value of the two businesses. DSV will issue shares representing approximately 8% of its outstanding shares to Agility. The combination of two businesses will provide an opportunity to offer customers high service levels and improve industry competencies.
The DSV board of Directors should authorize transactions of share issuance as part of completing business agreements. An Enterprise value of approximately $4.2 billion will be created resulting from the transactions engagement between the two firms (Agility,2021). After the achievement of the transaction DSV has come to an agreement to recommend an Agility designee to DSV board of directors. The economic preposition of this business combination gives Agility representative an authoritative responsibility to vote and make decisions.
Business combination may have a positive impact of shareholders equity as well as improving company market value. The two organizations will have an opportunity to explore new opportunities based on the availability of resources which can meet customer’s demand. Exploration of opportunities acts as the basic components in the investment decision. For example, Agility continues to invest in various emerging technologies enabling it to remain committed towards its goals.
References
Akhtaruzzaman, M., Boubaker, S., & Sensoy, A. (2021). Financial contagion during COVID–19 crisis. Finance Research Letters, 38, 101604.
Agility. (2021). DSV Panalpina to Acquire Agility’s Global Integrated Logistics Business. Web.
Financial Times. (2021). G7 Strikes Historic Agreement on taxing multination. Web.
Rufai, S. R., & Bunce, C. (2020). World leaders’ usage of Twitter in response to the COVID-19 pandemic: a content analysis. Journal of Public Health, 42(3), 510-516.