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Global Business
Q1.Identifying global business opportunities
While the lowering of trade barriers through formal agreements such as NAFTA have been vitally important in expanding the possibilities of consumers to access a diverse range of products, technology has been an equally important factor in doing so. Through the ubiquity of the Internet, consumers can buy products from all around the world. They can view them and select them without ever having accessed a brick-and-mortar shop. Technology is not simply a way of making products more efficiently (although it does accomplish that objective). It is also an effective marketing ploy. Consumers can read about products and how they are consumed, and they often want to imitate those lifestyles.
For example, SUVs and Apple products are extremely popular amongst China's burgeoning middle class. "Sport utility vehicle sales surged to 2 million units in 2012, a 25.5% increase over the 1.59 million sales volume in 2011, despite a slim auto market growth" (Chinese SUV sales hot, market divided, 2013, China Daily). The question might arise -- why would Chinese consumers living in cities need off-road vehicles? The answer is that SUVs have come to symbolize status and luxury, based on what Chinese consumers have read about Western lifestyles. American car manufacturer GM, despite its economic difficulties in the U.S., has...
"The social pressure of having an Apple product is strong, especially as the wealthy elites set the trend. If a middle class Chinese consumer cannot afford an expensive car or watch, sporting an iPhone may be just as good" (Chang 2011). Having 'the right' technology -- i.e. Western technology -- conveys important social cache in the developing world, and technology in general is vital in generating interest in a specific name brand or product before the company makes the investment in expanding abroad. While imports certainly existed before the Internet age, technology has speeded up the rate of adoption.
Q2. Differences in political economy and culture
Conventional wisdom once suggested that democracy and economic liberalization went hand-in-hand. This was once used as a justification for supporting right-wing conservative autocrats -- the assumption was that since they were capitalistic, democracy would be more likely to take root than in communist dictatorships. However, many nations in the world today belie the association between democracy and capitalism. China is often repressive in…
References
Chang, J. (2011). Why China loves Apple. CNN. Retrieved:
http://www.cnn.com/2013/01/15/opinion/chiang-apple-china
Chinese SUV sales hot, market divided. (2013). China Daily. Retrieved:
http://www.chinadaily.com.cn/business/motoring/2013-02/26/content_16257923.htm
http://www.opensecrets.org/news/reports/citizens_united.php
The Social Critic. Retrieved: http://www.quebecoislibre.org/younkins16.htm
Global Business When businesses go international, they have to operate in a more competitive, uncertain, and risky business environment. The forces present in the Global environment bring a number of challenges for the businesses; making it more difficult for them to maintain their market share, enhance profitability, and keep the customers satisfied (Cherunilam, 2007). To compete successfully and ensure a sustainable future in the international markets, business organizations have to analyze
S.$1 = 80.38 JPY (Japanese Yen). However, the current economic crisis in the United States and in major world economies including the European Union, combined with the post-tsunami economic consequences within Japan has made the exchange rates highly volatile and fluctuating. In order to avoid exchange rate risks, the company will make all transactions in one standard currency that is U.S. dollars. Moreover, in order to avoid exchange rate risks
Global Business Cultural Analysis: Brazil Cultural backgrounds reflect the ways and standards of living, which is unique and different for each country. In fact, the business world is also profoundly influenced by the cultural differences of the counties. This focus of this research paper, in this regard, is to analyze the cultural perspectives of doing business in Brazil. Therefore, major elements and dimensions of Brazilian culture such as business structures, management
Global Business Strategies Exit Strategy When a firm looks to complete a joint venture, it is necessary to determine what type of exit strategy (or strategies) would be appropriate. This strategy allows the company to leave the agreement without facing extreme los, and it also allows the business to maintain the respect that they had gained in the industry already. In the proposed joint venture with the Murakami Mill in Japan, the
The lack of process orchestration shows that IBM is failing to understand and manage the bargaining power of suppliers effectively. The core requirements of the project center on a series of healthcare professionals who taken together are the stakeholders of a complex payroll processing system (Paull, 2013). The requirements from a project management standpoint is to concentrate on the bargaining power of suppliers as system integration partners and create
Furthermore it has become critically necessary to be equipped technologically in handling today's increased IT demands for business communication. Bibliography Video Conferencing (2006) GlobalMedia. Online available at: www.globalmedia.com. Hart, Amy (2001) Global Communication Warming - The CEO Refresher. Online available at http://www.refresher.com/!warming.html. Martin, Jeannet S. And Chaney, Lillian H. (2006) Global Business Etiquette: A Guide to International Communication and Customs. Online available at http://doi.contentdirections.com/mr/greenwood.jsp?doi=10.1336/0275988155. Global Business Support: Creating the Infrastructure for International Business Communication