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All that Ms. Chang would do is to apply for the patent protection and then franchise a local company to manufacture the CAD system with full assurance that the product will be right protected and the business will still have the same business profits as it is in Singapore.
As a matter of fact, the machine, being so sophisticated will require importation of skills and manpower from the Singapore mother company since they are the ones who are familiar with its operations and can set it up within the licensed company in Pakistan. This makes it easier to have control over the operations of the machine and the levels of output as the technicians will have to be always around to supervise the smooth operation of the system.
Even though the levels of manufacturing in Singapore is above the levels of manufacturing in Pakistan, it still remains to be slightly…… [Read More]
International Market Evaluation
Political and Legal Environment Comparison: Canada vs. Australia
Both Canada and Australia are reported to have a 'Country isk Tier (CT)' that reflects "A.M. Best's assessment of three categories of risk: Economic, Political and Financial System isk stated in the case of Canada and Australia to be CT-1 classification which is characterized by "very low levels of economic, political and financial system risk." (AMB Country isk eport, 2010) The economic risk in Canada is reported to be 'very low' and the political risk in Canada is also stated at very low since Canada is a "high income country with significant natural resources and an established legal system." (AMB Country isk eport, 2010) The economy of Canada is directly impacted by the U.S. financial system. The budget of Canada is reported to have moved "into deficit as the government has used fiscal policy to help stimulate the economy."…… [Read More]
Northampton-Based Organisation Wishes Expand Market Internationally
Strategy of International Trade
A firm may decide to operate internationally due to a wide variety of reasons. These reasons include but are not limited to market imperfections at home, gaining market power and favourable environment overseas. In order to operate internationally, firms need an appropriate strategy so that their resources are put to best use and the whole process of internationalization proceeds according to plan. (Twarowska and Kakol, 2013)
There are two ways of entering an international market, equity-based entry and non-equity-based entry. The former gives high return on investment and market control but it has high risk associated with it. The latter does not give sufficient market power nor high rate of return but it is volatile and minimizes the risk. (Twarowska and Kakol, 2013)
The first and the least risky method to trade internationally is engaging in import and export. Using…… [Read More]
Segmenting International Markets
Companies that operate internationally will also segment the market internationally. International segmentation is undertaken by companies identifying groups of consumers with common traits or characteristics, which may traverse national borders (Kotler & Keller, 2011). One of the most basic methods of segmenting international markets is through regional, or national, segments based on social or cultural differences. For example, when KFC first entered the Chinese market the market was perceived as a similar market to other Asian countries, is that the company failed to succeed due to different case. When the company realized that Chinese consumers did not like skin on the fried chicken, and adjusted the product for this market they became more successful (Gereffi & Christian, 2010). Different consumer tastes which impact on the way product is made, presented or sold are only one potential source of international segmentation, other influences may include political, legal or…… [Read More]
Globalization and competition within the international markets demands that multinational corporations employ a series of strategies aimed at ensuring that they maintain a competitive advantage over their rivals. Such strategies can never be realized without first being aware of the external environment differences. An external environment analysis is therefore a key factor in the formulation of a successful internationalization strategy (Kennedy,1984).In this paper, we explore the concept of external environmental analysis and its role in the success of Starbucks as a multinational company.
The role of external environmental analysis in the strategic formulation of an internationalization strategy
The work of Babatunde and Adebesi (2012) noted that every organization that operates in a competitive business environment must employ strategic environmental scanning techniques in the evaluation of the external environmental forces (the opportunities and threats) in order to help the organization seize the opportunities and avoid threats and thereby gain profitability. Organizations,…… [Read More]
Norms: Every society has a set of norms, which often include the folkways, mores, taboos and rituals that exist within the culture.
Values: The values of a culture often refer to the things that are to be achieved or to the things that are considered of great worth or value.
eligion and Beliefs: The religion and the beliefs of the people in a civilization play an important role in shaping up of the culture of any society.
Social Collectives: Social collectives refer to the social groups, organizations, communities, institutions, classes, and societies, which are considered as symbolic social constructions within a culture.
Statuses and oles: A status or a social role is a slot or position within a group or society that a person belongs to.
Cultural Integration: This refers to the degree of harmony or integration within the various elements of culture (What are the Elements of Culture, 2009).…… [Read More]
5 billion (a$28.2 billion) in 2008 (IK, 2009). The Germans have a long history in the business, with "eau de Cologne" being invented in Koln 210 years ago (IK, 2009). The German market is continuing to grow slowly, despite economic challenges, recording 10.5% growth since 2004 (Ibid.).
There are approximately 525 firms in the industry in Germany, ranging from large international enterprises to small boutique cosmetic and fragrance houses. The industry is centered in Frankfurt. These companies are among the world's leading exporters of cosmetics. The industry association coordinates efforts with respect to both marketing and research and development functions at German firms.
The German cosmetics market is relatively saturated with competitors. Most major international brands have a presence in the market, as do scores of boutique brands. A multitude of channels are used, with indications being that mainstream mass retailers are the preferred channel for Germans in general. These…… [Read More]
The franchising operations have expanded significantly during the recent years namely because of the benefits and reduced risks they offer to both parties. A positive example in this sense is given by international chain McDonald's, which franchised several of their stores to countries across the globe. The McDonald's example however also reveals that franchising is not always suitable, and it is far from being the universally agreed method of successfully penetrating the foreign markets. To better understand, before entering the ussian market, the officials at McDonalds clearly analyzed the market features and felt the need to handle the operations by themselves, rather than become a franchisor. As a result of increased attention to details, the American corporation now holds next to 80% of the ussian fast food industry. Other American-based fast food chains have attempted to enter the market, but they did this through franchising, and the economic background in…… [Read More]
The primary limitation of using the existent data bases as a support for the current marketing research revolves around the fact they can contain outdated information, which was useful at the time the first research was taken, but are no longer applicable in the context of the current research, due to reasons such as changes in demographics, an increased competition or changing consumer preferences.
Personal interviews are similar to focus groups in the meaning that they refer to direct dialogues between the researcher and the audience -- in this case a single individual; the conversations are generally recorded for further analysis. The main advantage of this approach is that of an honest reaction to a product or a campaign promoted; the company could easily capitalize on its experience with the prospective customer and could significantly improve its offering. Nevertheless, there is the major disadvantage that personal interviews take…… [Read More]
PUPOSE OF THE STUDY
The focus of this research on international marketing and its applicability in an international context is the main contribution of this study. The addition to the literature is using the cultural framework of proportion of immigrants in the society to understand how cultural differences affect the applicability of international marketing. That is, the paper will expand on other international marketing papers to present a wider look at how international marketing differs form other countries. The study also refines the analytical framework by exploring firms in Dublin, Ireland in the business sector -- the sample as chosen from this population to get the unique perspective of these firms. How are modern business strategies that use direct marketing tools and new technological processes affecting specific sectors in the society? Also, what is the role of firms in Dublin, Ireland as it relates to the immigrant population? These are…… [Read More]
International expansion is one of the growth strategies that are embraced by companies in order to improve their bottom-line/profitability. In this paper, we present an elaborate international marketing strategy for ed Bull energy drink. The marketing plan begins with an introduction into the concept of international expansion and marketing and a brief overview of the company. A review of the main conclusions and recommendations is then presented. This is then followed by a discussion of internalization strategy. In this section, the context as well as context and reasons for the firm's internationalization initiation or expansion decision, as well as a discussion of the stage of internationalization at which your chosen firm finds itself. The next section is a discussion of the foreign market segmentation and targeting strategies. Under this section, we justify our choice of a market concentration or diversification strategy, incremental vs. simultaneous entry, the number of countries you…… [Read More]
As a matter of fact, this means venturing into unknown territories by the company and because of this the company has to work to eliminate this weakness by studying the market segments and their needs so you can meet those needs.
Marketing objectives are based on understanding the strengths and weakness and the business environment that the company operate in. The objectives are also linked to the overall business strategy. For instance, in the case of ABC Textile Company business objective is to penetrate in the international market be able to pose a serious competition in the industry. So as to achieve this objective, the company will be targeting a new promising market segment especially those in the rural areas to help achieve this growth.
Having realized the target market, the company has to position itself in it. To do this, the product should have a core message that differentiates…… [Read More]
" (Veeramani, 2004)
Stated as contributors to the export success of China are those as follows:
1) Favorable exchange rate;
2) Low wages;
3) Availability of labor;
4) Large domestic market;
5) Huge volume FDI inflows etc. (Veeramani, 2004)
India is not far behind except the gap existing in the FDI volume into China and India, which remains a large gap. The FDI for India has been of much less importance as compared to China except in view of information technology. Sinha (2007) states: "In short, while the multinationals mostly engage in the export activities with China, they target the domestic markets in India." (Sinha, 2007) the following chart shows that China is 'above average' in goods while India is 'above average' in services.
Source: India and China's Developmental Paths (2008)
The differentiations of multinational behavior likely include "the relatively high trade barriers in India (which encourages market seeking FDI)…… [Read More]
International Financial Markets and Institutions:
Throughout the globe, today's landscape of international financial market and institutions has continued to experience several changes that require practitioners to examine new models. The need for practitioners to examine new models that are relevant to the state of these markets and institutions has also been necessitated by the recent events that contribute to financial crises, which have been very dramatic. Actually, the recent financial crisis has had significant impacts on the financial institutions and markets resulting in the need for changes. International financial markets and institutions have become an important aspect of economies because they affect daily life. This is primarily because they involve the huge flow of different types of funds in the entire economy that in turn impact the profits of businesses, production of goods and services, and economic well-being of countries. In some cases, the events in these institutions and markets…… [Read More]
Starbucks succeeded in Asia specifically because it did not market the same way that it did in North America. Cultural differences made it difficult to market their primary product (coffee), so they shifted focus to their secondary product (the casual "third place"), something that is in high demand in Asia's densely populated cities and Asia's communal culture (Chang, 2010). Had Starbucks stuck with its focus on coffee, the message would have been lost on tea-drinking Asian consumers.
The notion that products can be marketed the same all the world over is a fanciful one. Even the world's most ubiquitous companies tailor their products, their distribution and their promotional strategies to the local conditions. The brand may be the same, but the marketing behind the brand is often very different.
4. There are a number of costs beyond the domestic price that must be considered when marketing abroad, including product-related costs,…… [Read More]
"Opening up the financial system to foreign capital flows can lead, and has led, to disastrous financial crises, which have resulted in great pain, suffering and even violence" (Mishkin, 2006, p.9).
Directly linked to the previous disadvantage and the basic definition of globalization, is the fact that the interdependence of sectors and institutions increases in a global market. In this instance then, a financial crisis within one country or within one institution is likely to generate negative effects upon its partners. The most relevant example of chain reaction to a financial crisis is the current situation, in which the global community is threatened with economic collapse due to the financial difficulties of the United States. The situation is similar in terms of politics or the social environment.
Globalization has often been assimilated with Americanization, meaning by this the desire of the American corporations to transcend boundaries and get access to…… [Read More]
Competitive strategy is the bedrock on which companies base business decisions to reach their targets and achieve profitability. Formulating and implementing strategies in international business is much more complicated and difficult task than doing so in home or familiar markets. Competitive strategy deals with the development of abilities by a firm to keep ahead of competitors in the fields in which it operates. Firms develop competitive edge in global markets by possessing certain assets, abilities or characteristics. The primary elements of competitive advantage are the critical offer, the significant operating factors and the firm's strategic resources. (ennett and lythe, 2002) Corporate strategies and international marketing strategies are linked closely and have a bearing on business performance. (rown, 1994)
While some companies focus on a single source of competitive advantage, it is common for many firms to opt for a combination of options to be flexible and attain the…… [Read More]
Notwithstanding these similarities in the marketing function, there are some important differences that must also be considered. For example, even enormous countries in geographic and population terms that have relatively homogeneous populations may require more straightforward domestic marketing techniques and small city-states will require more elaborate international marketing techniques. For example, as ao (2000) points out, "Given its strong tourism base and an open economy, Singapore has modern international retailing and other marketing institutions, making this country a truly global or international city, while India represents primarily a traditional, domestic marketing environment with considerable isolation from international markets" (p. 188).
According to Hills (1994), the ecological model shown in Figure 1 below indicates that there is no single, successful ongoing or steady-state strategy for small companies involved in international marketing initiatives. This author emphasizes that, "Standardization vs. local differentiation is the single most important issue in ongoing international…… [Read More]
27-29) This provoked financial demands and awareness of the people in different parts of the world. People and businesses are dissatisfied with the traditional financial systems due to lack of opportunities for investors. Businesses today require more diversified portfolios for investments because this will reduce their investment risks and increase the probability of future capital flows.
Increased capital mobility has increased the importance of exchange rates which is serving as a monetary policy channel in some industrialized economies. In mid 2000s, there was a sharp shift in the flow of international investments and savings (geographic pattern) resulting in the segmentation of current account imbalances. This was also a major contributing factor. Additionally, the domestic financial markets were also affected by the change in regulatory environment. The two important factors for this are as follows:
1. apid growth of OTC (over-the-counter) markets of derivatives in terms of complexity as well as…… [Read More]
Only a few decades ago, China was a struggling economy. It is much newer in the free market economy system as compared to the already established economical giants, given the country's communist history. China, a country with an extremely high population, put its resources to its best possible advantage and that was something which contributed towards the country's rapid growth. China has one of the cheapest labor and energy and power resources available for its production. As a result, the industries can achieve economies of scale and thus can cut down on their cost of production. As a result, China enjoys a greater absolute advantage over its competitors. Importers around the world have realized the fact that importing goods from China is relatively much cheaper as compared to imports from other developed economies. These cheaper imports allow them a greater profit margin. Moreover, given the fragile economic conditions and declining…… [Read More]
Liquidity shocks on the international arena can have a strong negative impact on less developed countries whose access to funding sources is already reduced.
The clearing risk is a specific risk, which combines credit risk, in the sense that it results from a counterparty's inability to meet its liabilities, market risk in the sense that it is caused by market shifts (general and specific market risk) between the time a transaction is executed and the time it is cleared, as well as liquidity and systemic risk." (Casanova, 2000). The clearing risk is assumed by clearing houses, which guarantee the proper settlement of transactions done by the members. These institutions engage themselves to bear potential replacement costs if either one of the trade counterparties can't fulfill its obligations. In international markets this risk is increased as the international arena as mentioned before it more dynamic and volatile and the chance of…… [Read More]
International Monetary System
In world trade, varied national currencies are swapped for each other by means of rules and procedures set by a system called the international monetary system. To delineate a general standard of value for the world's currencies, such a system is believed to be necessary.
The global monetary structure has always adhered to the organizational framework of the international discipline. In each stage of the financial capitalism there exists a corresponding monetary approach. The monetary structure during the postwar periods catered to the dominance of the United States. This was applied as a tool during the period to enforce the U.S. dominance over all its allies and the developing countries, irrespective of the socialist countries isolated themselves being unconnected from the influence of the financial and monetary disciplines of the global capitalism.
Gold standard was the first contemporary international monetary system. The gold standard contributed for the…… [Read More]
International Energy Law
International Energy Arbitration
This paper will examine the role of arbitration in the international energy sector over the past 50 years. Discussion is organized around the five decades leading up to the current state of affairs in the international energy sector. In each section, major arbitrations are identified and tied to the categorical intention of arbitrations of that period. For instance, arbitration awards that occurred during a period of substantive concession agreements -- termed the first generation of concession agreements by Kosheri (n.d.) -- include the Abu Dhabi award of 1951, the Qatar award of 1953, and the Aramco award of 1958.
The next period, which occurred roughly in the 1960s and 1970s, was characterized by arbitration awards that evidenced a climate of confrontation, during which host nations took the position of abstaining from participation in arbitration proceedings. These nations were unilaterally interested in bringing the earlier…… [Read More]
Labor influences vary from labor quality, quantity, labor unions, labor markets labor mobility and minorities. All these affect the international market differently. The quantity and quality of labor force are of great importance in the international business due to the profitability, efficacy and competition the employers should uphold and depict. Many countries want to purchase labor as cheaply as possible and also maximizing on the quality. Consequently, factors such as adaptability especially to new environments, managerial skills, ability to learn new things, and knowledge are highly considered when hiring candidates (Ball, 2006).
Labor quality can be termed as education, skills, and attitudes of potential employees which vary with regions and countries. It's an essential aspect and component to be considered in the planning stage. It should be considered to ensure that the right skill level is available to conduct business gainfully. In developing and poverty stricken areas where education and…… [Read More]
Music is something that reaches the soul. In other more pragmatic words we could state that its role is to answer psychological needs. From this pint of view the greatest opportunity that the artist benefits from is the one of making good quality music. Normally the high quality product should sell itself. In reality it will need a bit of promotion and advertising to achieve its purpose of becoming successful abroad.
Now that we have taken into consideration a multitude of strong points and opportunities, we should probably underline the fact that there are important threats that one must take into consideration. The first threat that we must analyze is represented by the competition. It is true that being a male could be an advantage on the international music market.
One may become the idol of the boys and a desired partner for the girls. Especially under the circumstances in…… [Read More]
The main advantage of this association is that you will get to control the production process and both collaborators will have the right to question and manage everything. It will require high negotiation skills, primary high investments, but the market is full of potential. By joint venture we will have the possibility to interfere in the recruitment process, deciding who the best people for the jobs are. For India, there will also be an important gain. Not only do we stimulate intern, national production but we also give new job opportunities to citizens. Moreover, due to the fact that India has highly trained people in the technological domain, we might improve our product's characteristics or even come up with new ways of reducing the costs. Moreover, the assembling parts will be less expensive as their transportation costs will be lower.
When choosing a country for expansion, one has to…… [Read More]
Socialist states use a command and control management structure as a substitute for the profit motive. This structure is less efficient, so production levels cannot match those of capitalist states. Ultimately, the lack of productivity and the large number of distortions lead to economic collapse (Tesche, 1993).
Since the collapse of the Soviet Union, the pace and nature of economic reforms has differed greatly in the former Soviet states. These range from regions with a virtual continuation of communist dictatorship (Belarus, Transnistria) to full-scale embrace of the free market (Estonia in particular). Russia's economy has only opened somewhat, and only to small and medium sized enterprises (SMEs). For the most part, the major firms in the economy are controlled by powerful businessmen with close ties to government. Freedom of capital flows has improved slightly, but the Russian economy overall remains under significant government control. The economy has grown substantially since…… [Read More]
Management possesses a broad range of international experience. Decisions may be made at head office or at the subsidiary level, but in either case management is familiar with both outlooks.
The rationale behind the ethnocentric approach is that the home office will deliver consistent decisions that are always in line with core values and objectives. The local managers are directly and specifically oriented towards corporate-wide objectives. The polycentric approach reflects the belief that the local managers will do what is best for the local subsidiary, which in turn will be what is best for the head office. The geocentric approach believes that the best management teams will be able to fuse local and global perspectives and that the other two approaches to do not achieve this.
4. Management development programs are systems for developing managers with specific skills and traits that are consistent with the corporation's strategic objectives. Managers are…… [Read More]
S. inflation in check, even during economic boom times.
The debate about increasing protectionism in the U.S. boils down to a clash of cultural values. In the natural course of international trade, there will be those who suffer and those who benefit. International markets are amoral. Trade is conducted between nations with the intent of raising the standard of living for both, but this is on aggregate, not universally. As a result, jobs losses in some sectors, particularly those where the U.S. does not have comparative advantage, are inevitable. To enact protectionist measures to stem those job losses will have three negative impacts.
The first is retaliatory trade measures. Tariffs and other protectionist measures tend to go hand in hand. If a country protects its industries, nations that trade with that country will do the same. This is the classic Smoot-Hawley scenario. To protect American jobs during the…… [Read More]
This method is a descendant of a Rand Corporation study methodology changed from war planning and now applied to changing university curricula. t will produce changing and dynamic profiles as the needs arise for a study.
t is a research technique with flexibility that has been used in a program at the University of Calgary to explore new concepts of the information systems body of knowledge in business. The Delphi method is a process to collect and distill the anonymous judgments of experts while using a set of data collection/analysis techniques that are interspersed with feedback. The method is suited as a research tool when there is incomplete data about a problem or phenomenon. This method works well when the goal is to improve the understanding of problems solutions, or to make forecasts. t is advantageous from a quantitative standpoint. t is very useful for helping to develop profiles of…… [Read More]
International Expansion Proposal
Expansion Report: The report contains information requested by the CEO regarding the possible expansion and recommendation thereof into either the .S., Asian or European marketplace.
In the interest of gaining the optimal perspective for the most profitable expansion of the company, research was conducted into the economic stability and consumer health of each expansion area. It was found that the nited States has the healthiest economy of the three expansion options. Additionally, the nited States has increasing interest and demand for the product and a positive response is feasible.
In order to optimize profit and ensure a smooth transition into the nited States, importation would be the optimal initial option. The importation would be handled through local businesses who sell the product to the customers and order from our company in advance. Once sales reach an optimal level, it is advisable for the company to pursue a…… [Read More]
Other than humans and the impact on their social and economic life, the oil companies also have a profound negative influence on the environment. The oil drilling and exploration process affect the environment at every stage. The first step is the identification of oil reserves in the region and assessing whether it can produce oil to cover the cost of drilling and exploration. The oil wells can be found inland or offshore. If the oil well is found inland, then it has to be dug out to assess its usability while for offshore drilling, the first step is to send seismic waves to understand its depth and exploration possibilities. This affects the organisms that depend on it especially the seismic waves can confuse the marine animals and disrupt their breeding grounds.
The next step is the exploration and this can lead to large scale displacement of people and misuse of…… [Read More]
Because of the free-price system, trading exists in various degrees thus causing a lack of organized trading system. Issues also indicate that market economy creates monolopies that threaten the competitiveness of goods and services. Therefore, the solution to such problem that market economy critics find is to support mixed economy because they need a structured and organized system of trading. But what can a mixed economy provide to the economic condition of a nation? To the proponents of mixed economy, this system can prevent unstable economic conditions because the economic system is controlled. A mixed economy presents both the faces of a free-market and capitalism where people have the right to choose which type of economic system they wish to implement in trading. Additionally, even if free-market also exists in a mixed economy, it is still limited which therefore continues to present a controlled economic condition.… [Read More]
These decisions of business model structure are predicated in part on the cultural variations of the foreign country to an organizations' home nation as well. Cultural variations between regions also lead more to distrust than trust and this is especially true when work is accelerated, assuming no cultural differences exist (Yeung, Selen, Zhang, Huo, 2009). While globalization is often seen as flattening the world from a common set of business processes, cultural variations, and within these cultural differences, deeply held religious values in Muslim nations for example, are far from as homogenous as the flat world mentality would have one believe. Instead there are significant gaps culturally that are actually catalysts of greater, albeit more attuned and focused, efforts at strategic growth globally.
The misconception that manufacturing is outsourced purely for cost reduction can be seen in the many uses and roles of factories within global manufacturing networks (Fedrows,…… [Read More]
International Financial eporting Standards
IFS and Canada
Canada was one of the first prominent nations involved in the North American Free Trade Agreement to consider switching their financial reporting to the International Financial eporting Standards. For years, Canada had been under the pressure of the United States to adopt a system aligned with the GAAP. Still, growing opportunities across the globe made the adoption of the IFS in Canada a better option. It was announced in early 2008 that the move was going to be made in Canada. Canada officially adopted the IFS standards in January of 2011 (PWC, 2014). Actually, the IFS standards were quite similar to the already existing Canadian GAAP standards. Thus the transition, for most businesses, was not extremely different than what they had encountered in the past.
The country made the official decision to adopt the IFS over their own GAAP system came in a…… [Read More]
Ghemawat states that administrative distance in relation to 'preferential trading agreements' involves gold, electricity, coffee, tea, cocoa spices, textiles fibers as well as sugar, sugar preparations and honey. Also included are gas and travel goods such as handbags as well as footwear and sanitary, plumbing, heating and lighting fixtures and furniture parts. Geographic distance factors impact products such as electricity current transfer over long distances, gas transfer, paper, paperboard and live animals as well as sugar, sugar preparations and honey. Included as well are other numerous products. Economic distance is derived through wealth differences and distance in economics results in a decrease in trade. Linguistic distance is the most severe in the range of distance impacts with second in sensitivity being administrative distance followed by geographic and then finally economic distance being the less in the range of sensitivity to impact on product because of existing distance.
Distance…… [Read More]
Companies decide to internationalize operations when the local market becomes saturated as a method to continue to grow and increase market share. Internationalization is the process by which companies shift operations from their home country into foreign markets. This process can be accomplished through a number of methods depending on the size, resources and strategy of the company.
Methods of International Operation
Companies will normally expand into international operations by exporting to overseas markets through independent channels or by licensing foreign manufacturers to produce products for overseas markets (Dicken 2003, p. 207). The next step is for a company to establish sales outlets in overseas markets by either buying a local company or setting up a new facility (Dicken 2003, p. 207). The last stage in internationalization is when a company establishes production facilities overseas by either buying another firm or setting up facilities (Dicken 2003, p. 207).…… [Read More]
" (U.S. Secuities and Exchange Commission Annual Repot No. 1-2217)
Economical and Political Influences:
Economical and political conditions in the intenational maket place include: "civil unest, poduct boycotts, govenmental changes and estiction on the ability to tansfe capital acoss bodes." It is vey possible that the cuent instability in economic and political conditions in the Middle East, Noth Koea, Iaq o elsewhee as well as continued teoism could advesely impact the Company's financial esults in business."
Othe factos include: "Changes in the nonalcoholic beveages business envionment which is inclusive of changes in consumes pefeences due to health o nutition aspects, competition pessues in poduct and picing competitive poduct. Othe changes such as changes in foeign cuency fluctuation and inteest ates as well as othe capital maket conditions, weathe conditions advesely effecting the Company by a eduction in demand, vaiations in effectiveness of advetising, maketing and pomotions. Fluctuations on cost and…… [Read More]
Cultural. Ireland tends to be culturally close to the United Kingdom and Europe and this explains why the main trading partners are represented by the UK, the EU and the United States. First of all, Ireland, the UK and the U.S. share a common language, English, which makes trade and commercial cooperation easier than, say, between Ireland and Japan. The ease of communication also encourages companies from the mentioned countries to invest in Ireland and one can notice that the main foreign investors are also the U.S. And the UK. On the other hand, Ireland, similarly to the U.S. And the UK, is an Anglo-Saxon country, with Anglo-Saxon traditions and social norms. It shares similar customs with the UK. Further more, the significant wave of Irish emigres to the United States had an important impact on the evolution of the U.S. And the development of society took account…… [Read More]
International Business and the egions
In the era of globalization, the primary scope of agencies, institutions and players across the world seems the creation of a free international market place. The efforts so far made have however been insufficient to create such a market place, but impressive successes were observed in terms of the creation of regional market places. In other words, the modern day economic society has managed to support and concretize its efforts in the direction of regional economic development.
egional economic integration
egional economic development is virtually understood as a context in which countries in the same global region direct their endeavors in the sense of creating an economically integrated region. They virtually focus on free trade and migration of goods, people, commodities, technologies and capitals and they strive to reduce the barriers between the respective economies. Jacques Pelkmans (2006) defines economic integration as "the elimination of…… [Read More]
"Dell recently established customer and technical support centers in India, China, Morocco, Panama, and Slovakia and has set up design centers in Taiwan and China. Furthermore, it not only has manufacturing facilities in Texas and Tennessee, but also in Brazil, Ireland, Malaysia, and China" (Pruitt, 2012).
Eeven though Dell has come under fire along with other companies by critics who say that offshoring is robbing U.S. citizens of jobs, the company's new chief executive officer has said that Dell will carry on to engage in the practice. The company's current chief operating officer has said that the issue of offshoring in regards to Dell has been overblown. Dell has said that it will persist to employ people overseas, where it sees market growth. The company derived almost forty percent of its revenue from international sales for its fiscal year 2004. In addition, it says that its potential growth is dependent…… [Read More]
" (S. M. Lele, Sustainable Development" A Critical Review, p. 611)
The main objectives of the sustainable development are to: revive growth, change the quality of growth, satisfy the basic needs for jobs and subsidiary services, ensure a sustainable level of population, preserve the resources, reorient technology and control risk, consider both economy and environment in the decision making process, and reorient international economic relationships. (S. M. Lele, Sustainable Development" A Critical Review, p. 611)
Connections between the two
Harriss promotes the idea of disciplined economics and governance based on rules. Lele promotes the sustainable development, again a form of governance based on a strict set of rules. The idea at the basis of these two theories is practically the same: governance, economy and the entire human behavior should be based on a set of rules previously elaborated to protect the interests of the participants as well as the environment's.…… [Read More]
Arumemi-Ikhide believes that Arik can succeed due to a combination of the opportunity -- helped by economic and air transport reforms in Nigeria -- and the capability to deliver a high quality product." (Dunn, 2009) Also stated by Arumemi-Ikhide is that this "will be a key in differentiating it in the international market and providing feeder traffic. That will be the lifeline for the international network. That's what sets up apart from our rivals." (Dunn, 2009)
Martin Russell states in the report entitled: "Arik Air: The Future of African Aviation" that both the "internal opinion of African air travel and that of onlookers overseas was bleak before the arrival of Nigeria's newest treasure, Arik Air." (2008) Russell states that the aviation industry is African is "hampered by somewhat less predictable weather and frequent storms" resulting in aviation in African being "far from predictable with temperamental skies that readily…… [Read More]
It is necessary to underscore this importance given the current fragility of the international trading system amid a global resurgence of protectionist pressures due to the deepening economic crisis (Bown, 2009).
In 2006, and in response to increased political pressure by the U.S. Congress, Washington initiated the current U.S. strategy of using the judicial forum of the WTO to manage bilateral trade frictions with Beijing. In March 2006, Canada and the European Community (EC) joined the United States in the first dispute by challenging China's discriminatory treatment of imported automobile parts. In 2007, the United States and Mexico disputed China's system of subsidizing domestic industries. Also in 2007, the United States initiated two complementary disputes over China's treatment of imported movies, music, and books, both Beijing's failure to enforce American intellectual property rights protection and its creation of regulatory hurdles that impede Hollywood film studios and other media and publishing…… [Read More]
International Trade Transaction used by MNEs in Global Business
International Trade Transaction
In the Global business environment, a typical trade transaction is either initiated by a seller who wishes to export his goods to the potential buyers in the international markets or by a buyer who is in a need for some specific goods that are not available in his country or it is more feasible for him to purchase them from international sellers. An international trade transaction is quite similar to a general local trade transaction with certain additional steps and precautions. These steps and precautionary measures make the international trade transaction far more complex than a local transaction (Hinkelman & Ebrary 140).
Participants in an International Trade Transaction:
Generally, there are four major participants in an international trade transaction; the seller (beneficiary or exporter of goods), buyer (importer of goods), issuing bank, and advising bank. Every international trade…… [Read More]
international business expansion process.
International recruitment and selection brings a number of challenges for business organizations. They not only face difficulties in hiring the desired skillful staff from the host country, but may also have to deal with severe financial and cultural diversity issues. Through this research study, an effort has been made to highlight the major challenges and issues which make the international recruitment and selection process more complex and challenging for multinational organization.
The research report starts with an ample introduction to the esearch question and proceeds by highlighting the core objectives of the research study. The research question clearly states the major objective of this research study in a quite precise and succinct manner. The most important section of the research report is Literature review which has been written after a comprehensive research from a number of academic and industry journal articles and books; most of which…… [Read More]
The same differentiation of how research is completed in specific countries also needs to pervade the development and execution of media research in various countries as well. International market research that centers on measuring branding effectiveness often has a focus on aligning with cultural values and norms, and in certain countries, religious beliefs (as is the case in Islamic countries) versus a purely feature or solution focus. Market research on both media preferences including branding and the development of research plans must be attuned to regional differences within nations that are more than just driven by previous purchases of research prospects, the cultural diversity of a nation must also be taken into account if a research project is to be effective (Yin Wong, Merrilees, 2007).
Alexander, N., hodes, M., Myers, H (2007). International market selection: measuring actions instead of intentions. The Journal of Services Marketing, 21(6), 424-434. etrieved January…… [Read More]
According to Chancellor Helmut chmidt the interest rates of the developed countries in the post1990 era were higher than they had ever been "at any time since Jesus Christ" (http://hdr.undp.org/external/HDR_papers/oc3b.htm). In 1983, in Latin America, whose devaluations were enormous, it was recorded that in one year "the effect on the individual private sector, which in [some] cases had been encouraged by the policies of the authorities to borrow, has been devastating...the amount needed in local currency to service external debt has increased three or four times" (Kuczynski,1983, p. 22). The situation in these countries is such: with the decrease of their currency value, more goods must be sold to pay back their debt plus interest, and since their export prices have been steadily declining in the post war years, their accumulated interest swells to a rate that is higher than the nominal dues stipulated in the original contract (http://hdr.undp.org/external/HDR_papers/oc3b.htm). In…… [Read More]
market case analysis for Verizon FiOS TV offered by Verizon Communications. The analysis consists of product, pricing, promotional, and distribution strategies which Verizon Communications should follow in order to operate in the industry in the most competitive and profitable way. The analysis of industry and competition is also given as a part of marketing research strategy.
Verizon Communications is one of the leading communication services providers in the World. Its major products and services include Verizon FiOS TV, FiOS Internet, FiOS Digital Voice, set-top box, and receiver sets. This paper presents a marketing analysis for Verizon FiOS TV -- one of the most successful communication services offered by Verizon Communications in the United States and some other countries. Verizon FiOS TV is a high quality fiber optic cable network for home television entertainment. Verizon Communications offers its Verizon FiOS TV in all the major cities and towns of the United…… [Read More]
Pharmaceutical industries have to operate in an environment that is highly competitive and subject to a wide variety of internal and external constraints. In recent times, there has been an increasing trend to reduce the cost of operation while competing with other companies that manufacture products that treat similar afflictions and ailments. The complexities in drug research and development and regulations have created an industry that is subject to intense pressure to perform. The amount of capital investment investments required to get a drug from conception, through clinical trials and into the market is enormous. The already high-strung pharmaceutical industry is increasingly investing greater amounts of resources in search of the next "blockbuster" drug that can help them gain market position and profits. Laws, regulations and patents are important to the industry while spending billions of dollars in ensuring the copyright of their products.
It is the intention of this…… [Read More]
By offshoring tasks, companies can also focus on their core business, allowing them to grow more rapidly, increase organizational value, and complexity. In an increasingly competitive world, these benefits can mean the difference between success and failure.
Globalisation and international expansion are two driving forces in organizational change, in today's world and likely will continue to be of increasing importance as the world becomes more competitive. As such, corporate strategies must be put into place that will effectively utilize the opportunities that arise from these forces, as well as safeguard against emerging threats. Increasing competition from foreign competitors is one of these threats, while international expansion offers great opportunities. Product diversification is also a corporate strategy that must be undertaken to meet the needs of consumers in different geographic regions. In addition, to remain competitive, corporate strategy can use outsourcing, as a byproduct of increased globalisation..
Hill, C.W.…… [Read More]
agree with the belief that the Asian financial crisis was rooted in governmental interference. I also agree with the fact that the export-led model is no longer sustainable because international markets are saturated. The mandating and structuring of regional markets by the nations in East Asia, particularly Japan, China, Malaysia, and Singapore, have proven to be devastating to their relative economies.
In order to understand the Asian financial crisis, it is important to explore its origins. Throughout the 1980s, the Asian countries, particularly Japan, experienced major financial growth. Industries, especially those involving high technology, were thriving in East Asia (Sato, Ryuzo, and Takashi Negishi). In the mid 1990s, signs began to emerge that the economy was much less stable than people had originally thought (Sato, Ryuzo, and Takashi Negishi).
Firstly, capital account surpluses were greatly exceeding the deficits of many of the East Asian countries, including Japan, Malaysia, and Singapore.…… [Read More]
Ever since Adam Smith demonstrated in The Wealth of Nations (1776) that individuals would be better off if they specialize, instead of trying to be economically self-sufficient, countries across the world have tried to apply the same principle to international trade. It is argued that all countries would be better off if they exchange the products and services that they are relatively good at producing for those things that other countries are relatively better at producing. David icardo (1772-1823), British economist and businessman, through his theory of Comparative Advantage went on to "prove" that it can be beneficial for two countries to trade, even if one of them is able to produce each item more cheaply than the other.
The colonialist powers, particularly Britain, had realized the benefits of international trade after its industrial revolution although it is highly debatable whether such trade was beneficial for the colonies…… [Read More]
due to changes in the economical, financial, political and technological changes, the capital markets across the world are highly influenced by the changes. As compared to the past, the development in the financial sector has been observed to be at the highest rates. In order to understand and analyze the changes in the global capital markets the below report has been constructed.
Based on the theme idea, which is the change in the capital market due to many factors and elements, the report below tends to discuss and analyse the impacts of financial deregulation and capital control on financial globalization and international diversification. This will allow understanding of how these two elements are supporting the financial globalization. A part from this, the report will also analyze the role of financial innovation and advancements and technologies on international investments. Moreover, the risks and benefits that are associated with the carry trade…… [Read More]
Comparative advantage is when someone is better at something than someone else. In the context of economics, it is typically applied to trade. For example, if two countries are trading, they should each produce the good at which they have comparative advantage. The overall production of two countries producing to their respective comparative advantage will be higher than if they both produced to their domestic demand. Key to understanding comparative advantage is the idea of opportunity cost. Where resources are scarce, any use of resources for one purpose means that another purpose must be forgone. But if parties produce that in which they have comparative advantage, not only does overall production increase, but opportunity cost decreases (Landsburg, 2007).
The product life cycle theory is an entirely different theory, reflecting an entirely different subject. The product life cycle theory is focused on the idea that products start with an introductory…… [Read More]
An important contribution to the market ideology is that the authors recognized the existence of a relationship between employment and the market. This relationship was based on that the employment, the division of labor and the "human material progress had proceed in parallel with the growth of the market." Otherwise put, there existed a direct relationship between the market and the employment, with the market being the feature which set the tone. An increase of the market would generate an increase in employment and vice versa. However, an increase or decrease in employment would not affect the market as the relationship between the two is unilateral.
Engels, Moore and Jones believed that the future successful implementation of the communist policies would see no major use of the market; "in the society of the future, there would be no mediation through the market. Wealth would satisfy needs directly. It would be…… [Read More]
Alibaba Group operates what it bills as the world's largest online marketplace, based on two main businesses, the B2B site Alibaba and the B2C site Taobao. The company's service is an interface that connects buyers and sellers. It arose out of a need to connect buyers and sellers within China, but the rapid growth of China as a global goods supplier facilitated the growth of Alibaba. Companies anywhere in the world could use the site to get bids from multiple suppliers, creating an efficient marketplace. The large number of customers allowed Alibaba to expand globally, so that today it is a network of buyers and sellers that operates globally. Alibaba is now floated on the New York Stock Exchange, giving the company greater access to foreign capital and solidifying its position as an international company.
Taobao is the largest online retailer in China. While this site is focused on the…… [Read More]
Examples in the United States include canned mushrooms" (p. 365). In contrast to the fresh market, the market for canned mushrooms in the United States has been adversely affected by imports, initially from Taiwan but increasingly from mainland China (Zamula 1998).
The research showed that the global mushroom industry has enjoyed significant growth in recent years due to a combination of increased consumer demand and innovative production methods. The research also showed that although fresh white button mushrooms continue to dominate the production and consumption patterns in the United States, demand fell slightly for this category while specialty mushroom categories experienced significant growth. The mushroom industry appears to have weathered the global economic downturn better than some other industries as well, and despite increasing pressure from foreign producers, it is reasonable to conclude that the domestic and global mushroom industries will continue to experience solid growth in the future.…… [Read More]
Whole Foods Market (WFM) is a grocery store chain that has operations in the U.S., Canada and the UK. Competitor The Fresh Market (TFM) is based only in the United States at this point. While Whole Foods is substantially bigger, these two companies are close competitors of one another based on the similarity of their product lines and their target markets. This paper will analyze the strategic tactics of each of these companies, based on their respective growth strategies.
The Merger & Evaluation
By 2007, Whole Foods was becoming the dominant player in the natural foods grocery business. It sought to grow further, and decided to purchase struggling competitor Wild Oats (Fineman, 2007). At the time, Whole Foods paid $18.50 in cash for each share of Wild Oats. There was concern from the Federal Trade Commission about the deal, because it put Whole Foods in a dominant position…… [Read More]
International Accounting Culture
Changing something as important and far-reaching as the accounting standards followed by a business can be a massive undertaking. However, this sort of complex change can be made all the more complicated when there are intense or complicated social and international factors in play. The case study studied for this report describes exactly such a situation in Egypt. That study will be reviewed in this report and other sources covering the same general topic will also be explored.
Case & esearch Analysis
As for the case study itself, it is quickly noted that Egypt is a developing country but they are most certainly transitioning to a market-based economy on par with more developed parts of the world like North America and western Europe. Egypt, like much of the world, was under colonial control and that was not ceded until the revolution that occurred in the 1950's. The…… [Read More]