...Chapter 5 Homework 1) How does environment analysis at the domestic level differ from global analysis? Although there are many parallels between domestic and global analysis, there also some difference between them. The important of these differences mainly depend on the complexity of analysis required. In terms of the remote environment, a global entity need stimulate the asset multiple, ever-changing political, economic, legal, social environments and so on. At the domestic level, firms usually conduct an analysis in a relatively stable political, economic and legal environment. Besides, in the operation environment, geographic dispersion gives the competitors a greater challenge to global firms. Third, in the industry environment, the forces driving competition tend to more extreme for global firms. They may face a greater number of barriers such as limit of the market, prohibition form the government policy. So at this time, the firms need the global analysis rather than the domestic analysis. 2) Which factors complicate environmental analysis at the global level? Which factors are making such analysis easier? As pointed before, the multiple political, economic, legal, social, and culture environments are faced by the global firms, which complicated the environment analysis process. It is so difficult for the firms to monitor the constant changes. Besides, the data before may not available and the reality of the available data may questionable. 3)...
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...THE IMPACT OF GLOBALIZATION ON INTERNATIONAL BUSINESS GROUP NO-01 FMG3231 INTERNATIONAL BUSINESS ECONOMICS FACULTY OF MANAGEMENT CONTENTS PAGE NO An introduction to international business 3 What is globalization? 6 The impact of globalization on international business 6 Future of international business and globalization 12 Summary 12 Reference 13 1. AN INTRODUCTION TO INTERNATIONAL BUSINESS International business involves all commercial transactions—private and governmental—between parties of two or more countries. Global events and competition affect almost all firms—large or small. However, the international environment is more complex and diverse than a firm’s domestic environment. An international business has many options for doing business, it includes, * Exporting goods and services. * Giving license to produce goods in the host country. * Starting a joint venture with a company. * Opening a branch for producing & distributing goods in the host country. * Providing managerial services to companies in the host country. Features of International Business Large scale operations: In international business, all the operations are conducted on a very huge scale. Production and marketing activities are conducted on a large scale. It first sells its goods in the local market. Then the surplus goods are exported. Integration of economies: International business integrates (combines)...
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...Analyze Cultural and Legal Environments of MNCs Analysis of conducting business in International Business Cross cultural issues can crop up in a number of business environment. Internal companies should have the top leadership, who are from different countries, be conversant with the local staff from host countries that may need different models and processes. In international business operations, getting to be aware of the set structures and processes that include the varied cultures of the company in a balanced manner. Cross cultural interaction in the business world calls for cultural compromise; the aspect of ignoring or favoring one culture over the other one would bring revenue to a decline and general decline of the whole company. For success to be acquired, varied decision making process and organizational models have to be considered with regard to how they change and cultures involved. Culture affect the behavior and preferences of customers and business partners. To be effective in a foreign market, the manager has to adapt their products to acquire the varied needs of a certain group of clients. Any change that has to be made in advertising or features of products among others will to some extend be based on cultural context. The success or inefficiency of a company is reliant upon how well the staff undertake their business and technical skills in a new environment. This capacity is reliant upon the job-based skills and personal sensitivity and how they...
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...changes in the global market environment. The United States has significantly transformed from being a manufacturing powerhouse as it now relies on importation of raw materials from other countries with upcoming markets. United States lost its self-sufficiency that it had in the past century especially during the Industrial Revolution. The integration of foreign made goods have made it easy for foreign workers to manoeuvre in different opportunities and pursue their American dreams because they are familiar with the goods thus making their work environments conducive (Weidenbaum, 2005). Moreover, this changed the perception held by majority of foreigners that United States is a melting pot of immigrants. These foreign workers take advantage of their knowledge about imported goods to penetrate the American markets further with the motive of advancing their skills and attract better wages and opportunities as a result. Unremitting importation of foreign made goods has affected American workers both positively and negatively. On the positive side, they get to learn new ideologies about manufacturing and global markets from the upcoming superpowers such as...
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...becoming an international marketer. To see how international marketing concepts influence international marketers. To appreciate the increasing importance of global awareness. 1.1 The Internationalisation of Business 1.2 International Marketing Defined 1.3 The International Marketing Task 1.4 Environmental Adjustment Needed 1.5 Self-reference Criterion: An Obstacle 1.6 Becoming International 1.7 International Marketing Orientations 1.8 Globalisation of Markets 1.9 Developing a Global Awareness 1.10 Orientation of International Marketing Summary The first section of International Marketing offers an overview of international marketing and a discussion of the global business, political and legal environments confronting the marketer. International Marketing is defined as Performance of Business activities beyond national borders. The task of international marketer is explained. Key obstacles to international marketing are not just foreign environments but also our won self reverence criteria (SRC) and ethnocentrism. This section deals exclusively with the uncontrollable elements of the environment and their assessment. The next section offers modules on assessing international market opportunities. Then, management issues in developing global marketing strategies are discussed. In each module the impact of the environment and culture on the marketing process is illustrated. Space prohibits an encyclopaedic...
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...CHAPTER TWO: Theoretical Foundations CHAPTER OVERVIEW As more firms enter the international marketplace, the competitive environment is more complex than ever. How can firms determine their level of competitiveness in a marketplace of expanded and increasingly intense rivalry? This chapter seeks to answer that question in a multi-faceted manner. First, the concepts of country-specific and firm-specific advantages are presented from the theories of international trade and the multinational firm. Firms must be aware of which advantages they can utilize in operationalizing their competitive advantages. The extent to which these advantages are transferable to other markets and not bound only to the markets in which a firm already operates will determine how successful that firm may be in new foreign markets. Then the Porter's Five Forces model is adapted as a systematic framework for analyzing the competitive environment in any market of the world. Finally, market-based and resource-based marketing strategies are compared. By skillful application of both perspectives, an organization may be well on its way to a profitable multinational presence. QUICK REFERENCE CHAPTER OUTLINE A. Introduction B. Country-Specific Advantages (CSAs) 1. Comparative Advantage & Absolute Advantage 2. International Product Cycle 3. National Competitive Advantages 4. The New Trade Theory 5. CSAs and Country-of-Origin Effects C. Firm-Specific Advantages (FSAs) ...
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...Strayer university | Assignment 1: The Business Environment | Business and the Economy | BUS100Demetrius Carolina | Malcolm Johnson | 2/4/2013 | | | The business environment has grown tremendously in the past century. It has become a vast outlet for many to start their own, in this essay I will explain the role, advantages and disadvantages of business in the economy The Role of Business in the economy is the main component because our economy is capitalistic. Business is in every sector of the market. Everything that is thought of that relates the economy is business. For example retail, services, agriculture, manufacturing, health care, even political campaigning all involves business. Without business, humans would have to completely fend for themselves for absolutely everything. This is why people create trade with each other. Instead of having to provide ourselves with everything, we can focus on producing one product or expertise. We can then specialize in that product or expertise to make it the best in the market and then sell it for a profit. In business the Factors of Production or natural Resources which includes all in puts that offer value in their natural state, such as land, fresh water, wind, and mineral deposits. Capital which includes machines, tools, buildings, information, and technology, the synthetic resources that a business needs to produce goods or services, Human Resources this factor encompasses the physical, intellectual, and creative...
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...Worldwide competition One of the product categories in which global competition has been easy to track in U.S.is automotive sales. The increasing intensity of competition in global markets is a challenge facing companies at all stages of involvement in international markets. As markets open up, and become more integrated, the pace of change accelerates, technology shrinks distances between markets and reduces the scale advantages of large firms, new sources of competition emerge, and competitive pressures mount at all levels of the organization. Also, the threat of competition from companies in countries such as India, China, Malaysia, and Brazil is on the rise, as their own domestic markets are opening up to foreign competition, stimulating greater awareness of international market opportunities and of the need to be internationally competitive. Companies which previously focused on protected domestic markets are entering into markets in other countries, creating new sources of competition, often targeted to price-sensitive market segments. Not only is competition intensifying for all firms regardless of their degree of global market involvement, but the basis for competition is changing. Competition continues to be market-based and ultimately relies on delivering superior value to consumers. However, success in global markets depends on knowledge accumulation and deployment.[1] tiwana. [edit]Evolution to global marketing Global marketing is not a revolutionary shift,...
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...The international business and trade environment is the backbone of global economy. Trade agreements to buying and selling goods and services internationally give manufacturers in various countries the opportunity to expand beyond the domestic market. Trading across national borders increases sales, creates jobs, balances seasonal fluctuations and provides a variety of products and services. As the global economy continues to strengthen, international trade continues to be in demand. 4.2 OBJECTIVES Increases Sales For some businesses, the drop in the value of the dollar increases business internationally. To capture the international market, businesses have launched Internet marketing campaigns and websites targeted at consumers in specific...
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...Chapter 1: Although forces in the foreign environment are the same as those in the domestic environment, they operate differently. Why is this so? According to the text, the “forces have different values, forces can be difficult to assess, and the forces are interrelated” (Ball, D. A., International business: The challenge of global competition, pg.24). For example, the expo embargo on shipments off most goods to Cuba showed just how stiff the consequences can be for two or more entities who do not share the same values. This lack of compromise by both parties’ leads to less trade and even less communication as the sides continues to take a stance for what they believe is politically correct. Another barrier in domestic and foreign relations is the ability to assess the forces on both sides of the fence. For example, if a nationalistic law was passed in order to appeal to a specific group, other individuals from the outside looking in may look at the government as being in opposition of foreign investment. This clouded interpretation of the situation may trigger a political outcry, which can slow the process of change and prevent two foreign entities from trading with one another. The last factor or barrier between foreign and domestic environments is the interrelation of the forces. For example, the combination of high-cost capital and an abundance of unskilled labor in many developing countries may lead to the use of a lower level of technology than would be employed in a more...
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...marketing chapter 1- introduction to global marketing principles of marketing a review The essence of marketing is to surpass the competition at the task of creating perceived value. Value equation = Benefits/Price (time, money, effort). Benefits are a combination of the product, promotion and distribution. A market = people or organization that are both able and willing to buy. When a company is able to create more value than the rest, he has a competitive advantage. A global industry – one in which competitive advantage van be achieved by operations on a worldwide scale. Global marketing: what it is and what it isnt Global marketing strategy, has 5 dimensions: 1. Global market participation: the extent to which a company had operations in major world markets. 2. Standardization vs. adaptation 3. Concentration of marketing activities: the extent to which activities related to the marketing mix are performed in one or a few countries. 4. Coordination of marketing activities: the extent to which marketing activities related to the marketing mix are planned and executed interdependently around the globe. 5. Integration of competitive moves: the extent to which a firm’s competitive marketing tactics in different parts of the world are interdependent. management orientations Ethnocentric orientation His/her home superior to the rest. Opportunities outside the home country are largely ignored domestic companies. Those who conduct business outside...
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...Business Environment Rankings Which country is best to do business in? From The Economist Intelligence Unit www.eiu.com Business Environment Rankings Which country is best to do business in? F or all the talk about the potential of emerging markets, developed economies in North America, Western Europe and Asia remain the best places to do business, according to The Economist Intelligence Unit’s latest Business Environment Rankings (BER). Singapore looks set to remain the world’s most investor-friendly location in 2014-18, retaining its number-one spot from the 2009-13 period. Switzerland and Hong Kong also defend their second and third place position. The remainder of the top ten is dominated by North America, Scandinavia and other developed Asian economies. BER rankings Score 2009-13a Global ranking 2009-13 Score 2014-18b Global ranking 2014-18 Singapore 8.56 1 8.65 1 Switzerland 8.41 2 8.52 2 Hong Kong 8.34 3 8.39 3 Canada 8.15 7 8.30 4 Australia 8.18 5 8.29 5 Sweden 8.20 4 8.26 6 USA 8.02 8 8.25 7 New Zealand 7.99 11 8.18 8 Finland 8.16 6 8.18 9 Denmark 8.01 9 8.16 10 Norway 7.89 13 8.01 11 Germany 7.99 10 7.98 12 Chile 7.81 14 7.89 13 Taiwan 7.68 16 7.85 14 Ireland 7.30 20 7.79 15 Netherlands 7.94 12 7.78 ...
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...Essay Faculty of European Legal and Political studies Globalisation, global economy and politics Student: Andrej Gorše Mentor: Prof. Jasna Cvijanović April, 2015 About globalisation Globalisation refers to a variety of events that are rapidly changing the world. The machine that powers globalisation, however, is the global economy. At the heart of the global economy are the twin policies of privatisation and deregulation, which national governments have adopted worldwide since the 1980’s. Terms like free market economy, level playing field, monetarism, market economy, and neo-liberalism embrace processes such as privatisation and deregulation. Privatisation is about putting governments out of business. The economic theory behind privatisation is that, Business knows best. In this age of globalisation, our governments cheerfully tell us that they are too incompetent to manage our economy, so as a service to the public they will instead let the free market run it. Then our governments sell off publicly owned businesses and assets, which usually end up controlled by multinationals and financed by public shareholders. Competition within the marketplace rather than government management, we are told, will produce lower prices and better services for consumers. This is called a better standard of living, which implies that the public are better off for having a privatised economy so they should be happy about it. The strange part is that governments streamline...
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...of International Marketing True / False Questions 1. (p. 3) Global commerce thrives during peacetime. TRUE Difficulty: Easy Type: Knowledge 2. (p. 4) To date, the lesson for international commerce in the 21st century is "expect the unexpected." TRUE Difficulty: Easy Type: Knowledge 3. (p. 5) Today, every American business is international. TRUE Difficulty: Moderate Type: Comprehension 4. (p. 5) One event that will influence the shape of international business as the future unfolds is the rapid growth of the World Trade Organization, NAFTA, and the European Union. TRUE Difficulty: Moderate Type: Comprehension 5. (p. 5) One event that will influence the shape of international business as the future unfolds is the unprecedented acceptance of communism and socialism in Latin America. FALSE Difficulty: Moderate Type: Comprehension 6. (p. 5) A trend that will impact international business in the future is a mandate to properly manage the resources and global environment. TRUE Difficulty: Moderate Type: Comprehension 7. (p. 5) Today, most business activities are local or regional in scope. FALSE Difficulty: Moderate Type: Knowledge 8. (p. 6, Crossing Borders 1.1) What do French farmers, Chinese fishermen, and Russian hackers have in common--they can all receive subsidy payments from the U.S. government. FALSE Difficulty: Moderate Type: Knowledge 9. (p. 6) Foreign-made products remain a small portion of all consumer products sold...
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...Overview of Chapter This chapter examines the global environment and identifies the various forces emanating from it which managers must perceive, interpret, and respond to. These forces are divided into two categories, the global task/specific and the general. The chapter also discusses the forces behind the process of globalization and the challenges that today’s open trade environment present to managers. The chapter then closes with a discussion of national culture, its impact upon organizations, and a model to be used to compare various national cultures. Learning Objectives 1. Explain why the ability to perceive, interpret, and respond appropriately to the organizational environment is crucial for managerial success. (LO1) 2. Identify the main forces in both the global task and general environments and describe the challenges that each force presents to managers. (LO2) 3. Explain why the global environment is becoming more open and competitive and identify the forces behind the process of globalization that increase the opportunities, challenges and threats, and complexities that managers face. (LO3) 4. Discuss why national cultures differ and why it is important that managers be sensitive to the effects of falling trade barriers and regional trade associations on the political and social systems of nations around the world. (LO 4) MANAGEMENT SNAPSHOT: NESTLE’S FOOD EMPIRE Nestle, a global organization, is headquartered in Vevey, Switzerland...
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