Mittal Steel Essay Example

an Indian enterprise. They thought this would have negative impacts on the European economy after the recent global crisis.

What are the benefits to Mittal Steel from entering different nations? Mittal Steel greatly benefited from entering different nations. They were able to acquire well known steel companies in various countries. This helped them enter these countries at a cheaper rate and get their name out there. After Mittals acquisition success they were able to go public, bringing in large sums of capital. Soon enough the steel industry had come out of its 25-year slump and it was once again booming. Steel prices were hitting record highs and Mittal became the world’s largest steel maker, generating a net income of $10.2 billion in 2006.

The acquisition of Arcelor was very acrimonious, with many politicians objecting to it. What do you think they objected? Were their objections reasonable? European politicians strongly opposed Mittal’s acquisition of Arcelor, because they considered Mittal an Indian enterprise. I think they might have been looking at the host country costs. They were only considering the possible adverse effects this acquisition would have on their economy, such as national sovereignty and autonomy. Their objections do not seem very reasonable to me. First, Mittal Steel was legally a Dutch enterprise. Second, they were not considering host-country benefits such as resource-transfer effects, employment effects, balance-of-payments effects, and effects on competition and economic growth.