...December 17, 2011 Edward Miller Google in China Describe the legal, cultural, and ethical challenges that confront the global business presented in your selected case study. Determine the various roles that host governments played in this particular global business operation. Summarize the strategic and operational challenges facing global managers illustrated in your selected case. Regional integration is a term which has been used for a long time. The definition of regional integrations is mainly the shifting of particular federal activities toward a new point. Regional integration is also considered to be an important process which compels a country’s enthusiasm to donate or combine into a larger unit to obtain certain goals. The goals achieved through regional integration can be political integration or free trade, as in North American Free Trade Association (NAFTA). There are different levels of integration and each level is dependent on a certain benchmark. The description for the different levels is the disadvantages and advantages of regional integration and the platform for how economic development connects with certain business opportunities. The Advantage of NAFTA The North American Free Trade Agreement also known as NAFTA is an effective trade agreement. NAFTA aids in the increase in agricultural trade and also to the venture...
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...Regional Integration for and Against Articles MGT/448 2014 Regional Integration for and Against Articles Regional Integration Trade blocs are agreements to help reduce trade barriers between participating states, regions, or countries ("trade bloc," 2014). The concept of regional economic integration takes the trade bloc concept and centers it into different regions on the globe. Regional economic integration is an agreement to reduce regional trade barriers, remove tariffs and non-tariff barriers that will hinder the flow of free trade of goods, services, and factors of production among countries in a geographic region (Hill, 2009). There are many regional trade blocs in place today that have achieved harmonious and non-harmonious integration. Following is a closer look at some of the advantages and disadvantage one trade bloc that is situated in the Caribbean region named, Caribbean Community (CARICOM) and its expansion into CARICOM Single Market and Economy (CSME). Caribbean Community (CARICOM) The Caribbean Community (CARICOM) was established in July 1973 as an expansion of the former Caribbean Free Trade Association (CARIFTA) that had been in place for seven years prior ("Caribbean community (caricom)," 2014). The CARICOM trading bloc profile states that it goes beyond the normal boundaries of free-trade to encompass programs that will sustain economic development within the region ("Caribbean community (caricom)," 2014). States located outside the CARICOM...
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...Advantages & Disadvantages of Regional Integration By David Alfredo, an eHow Contributing Writer Regional integration, advantages and disadvantages. In recent decades, the globalization of markets and the expansion of free-trade agreements have prompted many areas of the world to consider regional integration as a means to better compete in the world economy. Countries that alone may not have sufficiently large markets for production and consumption join together with regional neighbors in order to form areas where goods and labor can flow relatively freely in response to market demand. This allows the region to leverage the comparative advantage of many countries into one unified block of economic activity. As with every complex political and economic venture, regional integration is not without its risks. In order to better understand the issue, it is necessary to examine both the advantages and disadvantages of regional integration. First Advantage: Larger Markets Regional integration usually allows several different countries to come together and form common markets. This is done by opening up borders and eliminating tariffs and taxes on imports and exports between member nations. Where before it might have been difficult for a manufacturer in country A to find enough demand, it is now able to easily market and sell its products in countries B, C and D, thus allowing it to expand its business. Manufacturers and other firms operating in countries B, C and D can...
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...The Warwick MBA Assignment Cover Sheet Submitted by : 1268148 Date Sent : 10th December 2014 Module Title : International Business Module Code : IB8180 Date/Year of Module : July – December 2014 Submission Deadline: 10th December 2014 Word Count : XXXXXXX (Excluding Cover, Appendices, Table of Contents, Bibliography, Figures, Tables, Diagrams and Charts) Number of Pages : Question: Using a case study of an actual company, explain the advantages and disadvantages of different international strategies and organisational structures for large multinational enterprises. In your answer you should discuss the relationship between strategies and structures and the conditions under which particular strategies and structures are more or less appropriate. You must also use models of strategies and structures as discussed during the course and presented in the textbook. One example of a case could be IBM’s transformation towards a more global model, but you can choose any similar case as long as some information on the case is publicly available. “This is to certify that the work I am submitting is my own. All external references and sources are clearly acknowledged and identified within the contents. I am aware of the University of Warwick regulation concerning plagiarism and collusion. No substantial part(s) of the work submitted here has also been submitted by me in other assessments for accredited courses of study, and I acknowledge that if this has been...
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...A fundamental strategic dilemma faced by all multinational companies when competing internationally. It is Global-local dilemma. It is a choice between a local responsiveness or global integration. These two basic strategic needs: To integrate value chain activities globally and to create products and processes that are responsive to local market needs Pressures for global integration Multinational customers - Pressures for global integration are due to the importance of multinational customers. The dependence of customers on a global basis means that firms must co-ordinate their activities globally. Cost reduction - The pressure for cost reduction means that global integration is more necessary for a firm to benefit from various economies of scale. Competitors - There is also the presence of global competitors, which means that companies need to improve their global co-ordination in order to compete. Access to raw materials - Finally, pressures for global integration stems from increased accessed to raw materials and cheap energy, which can be achieved if manufacturing is concentrated in a single area, remote from other activities, thus requiring integration and co-ordination. Pressures for Local Responsiveness Diversity of local customer needs. responsiveness is required when needs differ between countries Differences in distribution channels - When distribution channels differ between countries, local responsiveness is needed to deal with differences in pricing...
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...Global Business Strategy Formulation Hector Garcia MGT/448 Global Business Strategies January 20th 2013 University of Phoenix Prof. Louis M. Lozada-Sorcia Regional Integration for and Against Articles Regional integration has been around for a long time. A definition is not easily formulated. Ordinarily the term refers to the integration of a nation of states into a larger collection. Regional integration can be described on one hand, as a vital method that requires a country’s eagerness to contribute to or unite into a larger whole. The extent of which what the country shares and establishes in level of integration. The different levels of integration are dependent on a predefined criterion. The descriptions of levels are the advantages and disadvantages of regional integration and how the stage for economic development relates to a potential business opportunity. The main advantage of NAFTA is that it is the world's leading free trade area, connecting more 400 billion people and producing $11 trillion worth of goods and services. NAFTA has two-thirds of the United States exports entering Mexico duty-free and nearly all U.S. exports to Canada enter duty-free. Each day, just about $1.8 billion is trilateral trade between NAFTA countries. The United States manufactured exports to NAFTA partners increased 78% in the first six years. Massachusetts exports almost $1 billion more to Canada than to any other country in the world...
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...CONTENTS 1.0 Introduction 2.0 Definition of Globalization in Supply Chain Management 3.0 Advantages of Globalization in Supply Chain Management 3.1 Reduced Cycle Time 3.2 Cost Competitive 3.3 Increase Sales, Profits 3.4 New Markets 3.5 Satisfy Shareholders 3.6 Learn From Others 4.0 Disadvantages of Globalization in Supply Chain Management 4.1 Inefficient and Undersized Transportation and Distribution Systems 4.2 Market Instability 5.0 Conclusion 6.0 References 1.0 Introduction Today’s business environment characterized is by faster technological development, shorter product life cycle, and more intense global competition. Having the right product available in the right place, at the right time, enable the company to compete in this volatile market place. This environment forces companies to actively acquire new way to achieve competitive advantage since a firm competitive advantage is now more dependent on operating efficiency and productivity across functional areas of the organization. Companies are going truly globalization in Supply Chain Management. A change in the way of serving and providing customer needs and wants emerge as a result of economy globalization. The role of manufacturing companies has changed from supplying domestic market to supply international market carried out in business network on supply chain. A company can develop a product in Singapore, manufacture in China and its customers throughout the world with globalization...
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...Analysis and ASEAN Regional integration can provide stability to a nation’s economic and political arenas. However, regional integration can be costly if trade diversion is not considered. The Association of Southeast Asian Nations (ASEAN) is advantageous for the member countries because it offers promise of solidarity and economic prosperity. However, historically member countries of ASEAN have not always been political allies and unresolved territorial disputes are still an issue. Finally, economic development of the countries of ASEAN is becoming increasingly enticing to larger countries such as China and America because of its potential “…as a market and production center for big companies from all over the world.” (Rabin, 2012) Regional Integration Regional integration can open up trade amongst nations that can have economical and political advantages but can often be costly due to diversion. Two cases can be made for regional integration. First, the economical advantages stem from the theory of free trade. According to Hall (2009), “…the theoretical ideal is an absence of barriers to the free flow of goods, services, and factors of production among nations.” (pg. 279, para.2) Regional integration among a few countries is easier to coordinate and function than integration on a global scale. Regional integrating bodies like the Association of Southeast Asian Nations (ASEAN), represent the Southeast Asian community and present itself to the global community as one, theoretically...
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...Ir and globalization CONENT: Introduction Body 1. What is Globalization and how it is related with the International Relations; 2. Advantages and Disadvantages of the Globalization; 3. Effectiveness of the Globalization Conclusion NTRODUCTION In my work I talk about the Globalization and its relation with the Globalization where I dwelled upon the Globalization. In the second part I did survey and focused on the advantages and disadvantages of globalization as the statistics show.After hammering out the two factors I wrote about de facto effectiveness of the Globalization and at the end I stated my estimation and conclusion. International Relation and Globalization As more nations, people, and cultures adapt to the ever changing international community, diplomats, politicians, and representatives must meet and deal with accordingly to the needs and wants of nations. Diplomacy can be exerted in many forms; through peace talks, written constitutions, field experiences, etc. Culture is a familiar term and remains unchanged by definition. However, globalization and international relations have constantly altered culture both positively and negatively. Globalization increases worldwide technology, and the readability of fast, effective communication and consumption of popular products. Globalization links cultures and international relations on a variety of levels; economics, politically, socially, etc. International relations have used globalization to reach its goal: of understanding...
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...Impact of Vertical Integration Table of Contents What is Vertical Integration?3 De Beers Summary3 Internal strengths of vertical integration5 External strengths of vertical integration6 Disadvantages of vertical integration7 Quad/Graphics and vertical integration7 Four types of Vertical Integration 7 Ownership and Breadth of De Beers 9 Conclusion 10 References11 What is Vertical Integration? Vertical integration is a powerful corporate strategy that when implemented under the right circumstances can work towards the organizations advantage. Vertical integration describes a firm's control over several or all of the production and or distribution steps involved in the creation of its product or service. This integration takes the assets that was owned by two organizations and combines it into a single business; this creates either a joint ownership, or the sale of one firm’s assets to another business. This strategy is more advantageous then contracting with an outside company since usually it creates lower operating costs and more control over quality of its products or services. Forward and backward integration in an organizations’ value chain is an attempt to strengthen a company’s business model. Although there are different forms of vertical integration, its main approach is either to expand operations backward into an industry that produces inputs for the company, or forward into an industry that distributes the company’s products. According to Harrigan...
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...they are presented, Integration may arise not only as a key concept but as one of the ultimate goals of international trade. Integration should be described and analysed not only theoretically but with the European case as framework. Finally, the conclusion may be presented showing all the benefits and drawbacks of integration. Table of contents Introduction 1 Analysis 2 Conclusion 9 Bibliography 11 Appendix 13 Introduction The aim of this project is to present, characterize, examine and analyse the nature and sense of the European integration. In order to achieve it some of the most important trade theories will be presented. Not only the classic ones but also some of the more recent ones, which will allow the analysis to fundament and give an accurate background to the idea of integration and all its components. The study should be focalized into the old classical trade theories of Absolute and Comparative Advantages, the Heckscher-Ohlin model and its Samuelson variation. Then, some of the newest classical trade theories such as the New Trade theory and the International Product Life Cycle theory will be discussed. Finally, it will be mentioned one new contemporary trade theory made by Michael Porter´s referring to the national competitive advantages. The main intention of presenting those theories is to have the proper theoretic framework so to develop and explain the case of the European integration among the trade features...
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...International Strategic Management approach, companies can choose to either venture their business towards the Global or Regional strategy. The Global Integration strategy looks at production and distribution of products and services of a homogenous type and quality on a worldwide basis. National Responsiveness strategy requires understanding of individual consumer tastes imposed by autonomous governments and agencies. To further understand the Global and National strategies, we look into the two-dimension matrix below. (textbook, pg277) Global Strategy International Strategy Transnational Strategy Multi-domestic Strategy Global Integration High Low National Responsiveness High Low Quadrant 1 – Global Strategy, High requirement for integration and low awareness of differentiation. Based on price competition, entry strategy used it often mergers and acquisition. Quadrant 2 – International Strategy. Low requirement for centralised quality check and strategic decision making eliminating the need to adapt to individual countries. Mixed strategy combining low demand for integration and responsiveness. Quadrant 3 – Transnational Strategy. High requirement for integration and differentiation. Emphasizing both global integration and local responsiveness. Quadrant 4 – Multi-domestic Strategy. High requirement for differentiation but low concern for integration. Emphasize on local adaption. 2.1 ANALYSIS Adaption from the Case Studies and Research Cases Tata Group...
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...Regional Integration for and Against Articles University of Phoenix MGT-448 Stephen D. Julias, III April 2, 2011 Abstract Regional integration has been around for a long time. A definition is not easily formulated. Ordinarily the term refers to the integration of a nation of states into a larger collection. Regional integration can be described on one hand, as a vital method that requires a country’s eagerness to contribute to or unite into a larger whole. The extent of which the country shares and what the country shares establishes the level of integration. The different levels of integration are dependent on a predefined criterion. The descriptions of levels are the advantages and disadvantages of regional integration and how the stage for economic development relates to a potential business opportunity. The Advantage NAFTA The North American Free Trade Agreement (NAFTA) is an economic, international trade treaty connecting three nations that inhabit the North American continent (Canada, Mexico, and the United States) that began in 1994. NAFTA is designed to remove various trade barriers between Canada, Mexico, and the United States as well as a reduction or elimination of numerous tariffs and nontariff barriers. NAFTA is exceptional in that it has created the foremost regional integration agreement linking two highly developed countries, the United States and Canada, and a developing country, Mexico. Export opportunities have grown under NAFTA because of the tariffs...
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...MGT/448 - GLOBAL BUSINESS STRATEGIES Instructor: MICHAEL GAY Schedule: 10/12/2011 - 11/09/2011 Campus: SOUTH COAST LEARNING CENTER Group ID: SC11BSM06 Regional Integration for and against Articles EU Regional Integration Advantages The development of our world economy displays its escalating integrity and is based on international specialization and also co-production, and not the mention the consolidation of economic relations among states and business entities. Integration is a judicial law of the progress of international economic relationship. European Union is the foremost commercial power in our world today. The EU has attained the national unity in the economic and social policy: not a member of the EU can’t secure the prices of agricultural products or to enter in commercial agreements with third world countries or relations, state aid to companies individually have to be held in beneath the Brussels treaty. Countries have to meet the terms with general rules, environmental safety and consumer protection as well. The reaction of the leading countries: the influential’s talked about their success of monetary union. The key advantages of regional integration is having newer, cheaper, faster and more diversified, goods, resources, services, facilities, ideas and knowledge as well as higher living standards available. The powerful forces of international economic integration are the companies. They are interested in achieving an optimal level of activity, including...
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...Paper 1-The Role of Standardization, Localization, Culture and Market Research in International Marketing Strategies Adamu Yushau Usumanu This Paper is Submitted in Partial Fulfillment of the requirement for International Marketing Management course SMC University School of Management Dr. Babu P. George May 19 , 2014 Abstract The research paper discussed standardization and localization strategies, where standardization strategy refer to a common marketing program cutting across nations and marketing segments, while localization strategy seek to adapt products and marketing strategy to the specific characteristics of individual markets. The paper further identified the advantages and disadvantages of standardization and localization strategies in the context of international marketing. The role of cultural pattern in society and its effect on consumption were also discussed, where culture refer to a system of values and norms that are shared among a group of people. Cultural patterns exert a great influence on consumption in a social setting. The paper finally discussed the need for a business entity to carry out a research on differences in language culture, regulations governing marketing before entering a new international market. Key Words Marketing Strategy, Standardization, Localization,, International Marketing, Cultural Patterns, Marketing Mix, Market Research Introduction The discussions...
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