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Global Environment
Thousands of companies compete in the global environment. Some of the most prominent global companies are Exxon Mobil, Microsoft, Nestle, Honda, Coca-Cola, Anheuser-Busch InBev, and HSBC. These companies all operate in different industries, and many are based outside of the United States. For companies, operating in the global environment gives them access to a wide range of customers, providing not only growth opportunities but geographic diversification. Global presence can also help a company to attract top talent from around the world, giving it further competitive advantage over companies that are not global in nature. For consumers, global companies often offer a mix of global and local products, providing variety but also product consistency. Shareholders benefit from the diversification and sources of growth.
Exchange rates between nations are directly affected by the differential interest rates. The value of money changes at different rates in different countries, and these changes are reflected in the exchange rates. This...
With more capital flowing into a country, the value of that currency increases. Thus, there is a direct correlation between interest rates and exchange rates (Van Bergen, 2011).
Inflation rates affect exchange rates because they are related to interest rates. Central banks adjust interest rates to manage the rate of inflation in an economy. Thus, if inflation rates are higher, interest rates will increase to offset this, and this will cause the currency to weaken. Productivity and income are also related -- the greater the degree of economic activity the increased likelihood that the central bank will raise interest rates to curtail the inflation that results from that activity. This again will have an effect on exchange rates.
Global economic conditions impact on exchange rates. Canada is a good example of this. The Canadian economy did not suffer as much as the U.S. economy did during the recession, and Canada recovered more quickly. A major component…
Works Cited:
Van Bergen, J. (2011). 6 factors that influence exchange rates. Investopedia. Retrieved April 7, 2011 from http://www.investopedia.com/articles/basics/04/050704.asp
Reuters. (2011). C$ climbs ahead of Canada March jobs data. Reuters. Retrieved April 7, 2011 from http://www.reuters.com/article/2011/04/07/markets-canada-dollar-bonds-idUSN0726600020110407
As household penetration increases, competition for products in the online marketplace also increases in those areas, as does the need for components to access the online marketplace. Further, as internet skills increase in companies and households around the world, the competitive advantage achieved from coordinating marketing across countries can be significant (Steinbock, 2000). Microsoft, for example, has developed a huge online presence in response to household penetration increases and increases
However, they remind us of the author Lall (2000), who declares that before companies or farms can use and derive the benefits of the technology, they need to learn and develop new skills. Beyond the capacity of adopting new techniques, developing countries also need the capacity to invent and adapt new technologies. Poor countries need to foster their own creativity to use both local and global knowledge and science
All of our manufacturing facilities and major suppliers' facilities have attained third-party certification to the standard" (Environment, 2008, p. 2). The company is also actively engaged in ongoing improvements in the environmental performance of its facilities. For example, the company reports that it has reduced global energy use by 27% and global water use by 25% compared to 2000 levels (Environment). The company reports that it seeks to improve
Effect of External and Internal Environment Introduction Organizations have both an internal and external environment. To begin with, the forces or circumstances within the borderline of the organization are the components of the internal environment. Notably, the internal environment comprises for the most part of the owners, employees, board of directors, stakeholders, and the corporate culture. On the other hand, factors that are extrinsic to the organization are the components of the
Cadbury-Company and Marketing External Situational AnalysisIntroductionSeveral companies share large markets in the United Kingdom in Chocolate and Confectionery Production. With an external analysis evaluation in Cadbury�s chocolate confectionery brand, the company is Cadbury, formerly Cadbury�s and Cadbury Schweppes. This particular company makes production, markets, and sells products of chocolate confectionery, and the range of products includes chewing gum and cough brands, confectionery, and chocolate. According to statistics based on a
demands being placed on the global transportation industry are creating unprecedented requirements for international commerce during a period when peak oil is being approached and the need for more environmentally responsible alternatives has become especially pronounced. The responses to the varied needs of the global transportation industry have included research and development of alternative energy sources as well as innovative supply chain management approaches that make global transportation more