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BACKGROUND:

DSV Transport and Company A/S is a Danish based international transport and Cargo Company. The headquarters for DSV Transport is located in Estonia. DSV has offices in over 60 countries and offers services in over 110 countries. Eastrex Group of Companies is a Malaysian based international transport, storage and cargo company. DSV and Eastrex have been discussing potential business ventures in order to increase and strengthen their current businesses. This is especially important to DSV who is trying to increase their visibility in the areas around Malaysia. Among the topics of discussion are the following:

1) DSV is considering using Eastrex to assist them in their international business operations. 

2) DSV is considering purchasing a majority interest in Eastrex to make it easier to utilize Eastrex in their operations. 

3) DSV is considering forming a joint venture company with Eastrex, jointly owned 50% each.

ISSUES:

Discuss the three options given above. Include in your discussion the issues involved and the advantages and disadvantages of each. Which do you believe would be the most beneficial to DSV and Eastrex?

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M93421

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