International Management Assignment Example | Topics and Well Written Essays - 500 words - 1

International Management - Assignment Example Apart from tax benefits Pfizer must consider other factors. The stakeholders of the company include shareholders, directors, employees, suppliers, customers and the society. In the case of an inversion each stakeholder will be affected significantly. To start with some employees and customers may not be retained. Shareholders rights may be affected significantly. Before inversion shareholders should consider how their rights will affect when they move from being shareholder of a U.S. corporation to shareholders of a foreign corporation. Any significant effect should be analyzed carefully to determine whether reversal increases the risks associated with ownership in the corporation and if so, agree on whether the increased risk is bearable. Shareholders should consider the following among other factors how shareholder’s proposals are brought before the new board, appointment of new board members, and rights of a minority shareholder. They can also consider the presence of special voting rights for any shareholders and distribution of d ividends. Directors and shareholders must consider legal in a foreign jurisdiction in order to decide which foreign jurisdiction relocate. Once reincorporation is successful the corporate’s shareholders, and directors become subject to the laws of a foreign country. The law could differ significantly from the US laws. The differences in rules should be discussed in length by directors and shareholders. They should review laws on fiduciary duties, shareholders rights and corporate governance. In addition to legal matters, corporation should also consider, including political criticism and public concern. Corporates react to incentives so as to increase profits that can lead to increased personal income like bonuses, high stock prices and other incentives compensation. The primary goal of any business is to maximize on cost and to reduce the cost. Organizations intending to transfer