...Executive Summery Most of the South Asian economies (e.g. India, Pakistan and Bangladesh) have made significant economic progress in the last two decades and are well on track to becoming major regional or even world economic powerhouses. In the recent years, many MNCs are increasingly putting more attention to the emerging. Asian countries for competitive advantage. One classic example is China. With a population of more than 1.3 billion China is predicted to be the largest economy in the world by next 20 years surpassing United States (UN Report 2007). China has become the manufacturing and investment hub for many MNCs. Despite huge success for most of the MNCs, many already failed in doing business in China due to their management’s inability to manage their human resources appropriately. Taking the Chinese lead like the tiger economies in Asia, Bangladesh is also emerging as a dynamic and significant economic player in South Asia. Bangladesh is one of the pioneers in the region for economic liberalization. It has adopted the best policies of South Asia to attract Foreign Direct Investment (FDI). Doing business in Bangladesh is much easier than most of the developing countries. A recent report entitled “Doing Business in 2007: Creating Jobs” published jointly by World Bank and IFC placed Bangladesh in 68th position in terms of easy of doing business among 175 countries (World Bank, 2007). This places Bangladesh ahead of other countries in the region such as India (88th)...
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...effective tactics. The challenge is that any mistakes made abroad can be more costly due to local government regulations. Sudden changes in the trade laws and legal systems in other countries exposes international firms to regulatory risks. For instance changes in a country’s banking system may limit a firm’s access to funding or their ability to repatriate money to their home countries. A major commercial risk is usually lack of knowledge of the international market. If exporters, for example do not have in-depth knowledge on the area where its sales are being made, it is more likely to fail in international business. Commercial risk occurs as the result of inadequate formulation and implementation of strategies, tactics and procedures. These also include timing of the company into a particular market, the competitive intensity existing prevailing in the market, poor strategy execution and the weakness of the partner and also the various kinds of operational problems. It should however be considered that commercial risks are usually unpredictable and it is therefore essential for firms to lay down effective strategies in place to ensure that this risk is reduced. Currency Risk Currency or Financial risk occurs as a result of the daily fluctuations of different currencies against each other. It also includes the valuation of assets and the foreign taxation policies available in different countries. This risk is mainly to do with the adverse fluctuation of exchange rates...
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...BTEC Business Studies (Level 3) Unit 39 International Business Aim and purpose The aim of this unit is to introduce learners to the role played by international business. The importing and Exporting of goods and services are important economic activities to any economy. Learners will study National and international businesses and the framework in which they operate. In this unit you must explain the importance and differences of international trade. You will explain key economic terms and demonstrate an understanding of how to trade internationally. Many of the tasks will cover several Passes and Merit Criteria. Barr’s are soft drink manufacturers who are famous for manufacturing Irn Bru. They have just appointed you as their marketing manager and are keen to explore the idea of selling Irn Bru abroad. They have identified Germany as a possible option. They have asked you to research into the benefits and costs of doing business internationally. They have asked you to write a report and then present your findings to the board. P1) P1 explain the international Business environment in Which a selected organisation Operates You decide to look at a company that is successfully trading internationally. * Write a profile of a multi-national company Where is its headquarters? Where does it sell its goods or services? What percentage of its market are in different countries etc? How long has it traded in different countries? Turnover etc? * Answer...
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...INTERNATIONAL BUSINESS MANAGEMEMENT ASSIGNMENT 2 Question 1 When the Mexico’s currency is pegged to the United States dollar, it means that the exchange rate is set and artificially maintained by the government. The rate will not fluctuate from day to day. The pegged exchange rate is usually used to stabilize the value of a currency against the currency it is pegged to which makes trade and investments between the two currency areas easier and more predictable. Pegged exchange rate system can also be used as a means to control inflation. The difference between a free/clean float, a managed float and fixed exchange rate systems of exchange rate is that: Clean/free float In the clean/free float also known as a pure exchange rate the value of a currency, which is the exchange rate is determined purely by market forces of supply and demand. Clean floats can only exist where there is no government interference, as would be the case in a purely capitalistic economy. Therefore, clean floats are a result of Laissez-Faire or free market economies. Managed float In a managed float also known as “dirty float” the government or the country's central bank occasionally intervenes to change the direction of the value of the country's currency. In most instances, the intervention aspect of a dirty float system is meant to act as a buffer against an external economic shock before its effects become truly disruptive to the domestic economy. Therefore, with a managed or dirty float the government...
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...International Law: Essential Aspects Explained Abstract International Law helps governing relations among sovereign nations. It affects both society and individuals in many aspects. Today international law is not only about relations among different countries, but also how it is dealt internally. This paper will identify important international principles and doctrines, such as National Law, the Principle of Comity, and the Act of State and Sovereign Immunity Doctrines. This paper will also explore how business is done internationally by seeking foreign markets, exporting, and manufacturing abroad. International contracts and methods for making payments in international transactions will be explained. Break down the whole regulation of international business activities, such as investing and export and import controls and bribing foreign officials. And lastly, how U.S laws apply in a global context, such as antitrust laws and antidiscrimination laws. International Law: Essential Aspects Explained International business and commerce has always been a big part of civilization and throughout history. What is new today is the rapid growth of exchange of goods, services and intellectual property on a global scale. There are many laws pertaining how we handle commerce through the United States and to other countries and vice versa. International Law can be identified as a body of law as a result of international customs, treaties and organizations that are the benchmark for...
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...INTERNATIONAL BUSINESS OPERATIONS Need for International Business International Business is important and necessary because economic isolationism is today impossible. Failure to become part of the global market assures a country of declining economic influence and deteriorating standard of living for its citizens. Successful participation in international business promises improved quality of life and a better society leading to a more peaceful world. Most people are likely, on individual levels, to become involved with international business corporations during their careers. Manufacturing companies, and also service companies like banks, consulting firms or insurance are going global. In an era of open borders, niche marketing, instant communications and free ways of reaching millions of people, huge opportunity emerges for individuals to enter the international business arena. International business offers companies new markets. Since the mid-20th century, the growth of international trade and investment has been substantially larger than the growth of domestic economies. The combination of domestic and international business presents more opportunities for expansion, growth and income than domestic business alone. International business generates the flow of ideas, services and capital across the world. International business also offers consumers new options. It enables the acquisition of a wider variety of products, in terms of both quality and quantity and at reduced...
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...The Rapid Change of International Business James Taylor 0141 2-9-12 Zale University Dr. Rugger The Rapid Change of International Business 4. Discuss the forces that are leading international firms to globalization of their sourcing, production, and marketing. (a) Political forces has lead to increasing trend toward multilateralism (in which the United Nations plays a key role) and toward the emergence of national and international nongovernmental organizations that act as watchdogs over governments and have increased their activities and influence. Political forces are also setting a trend towards unification and socialization of the global economy (Moghadam, 2010). (b) Technological forces play a fundamental part in making globalization possible. Without airplanes, telephones, satellites, computers and televisions it would not be possible to transfer information from one place to another, thus allowing for the speed and the intensity which characterize the modern world. These technological advances give rise to a rate of diffusion and transfer of knowledge which is greatly superior to that of the past. In other words, it was the new technologies that allowed the emergence of the “global village”. (c) Market forces combines the promotion and selling of goods and services with an increasingly interdependent and integrated global economy. It makes companies feel if they are without walls...
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...Should We Cry For Argentina Question 1: Argentina’s peso was linked to the U.S. dollar through a currency board for 10 year before it was cut loose. Why did Argentina peg its currency to the dollar in the first place? Answer: In the initial time of 20th Century, Argentina was one of the wealthiest and successful economies in the world. Situation started changing after World War I, Argentina started undergoing slow economic growth rate because of bad policy, political gridlock and adverse change in trade. In 1970’s, Outbreak of oil crises concluded severe debt crises of 1980’s in Latin America. Government spending was more than the tax, market borrowing, which ultimately gave movement to inflation. Since 1980 Argentina was badly suffering from heavy debts and fast growing inflation. In 1989, inflation peaked to 5000 %, GDP lowered down by 10% from 1989 and 20 % fall on per capita GDP. In order to stabilize the growing inflation, the convertibility plan of 1991, fixed a peg of the Argentina currency peso against the dollar which means one peso to one dollar. This laid the foundation for exchange-rate stabilization. This helped Argentines to freely convert their pesos into dollars under currency board and increased bank deposits and loans in dollar became extensive. The main reason behind this implementation was to increase people confidence on Argentina currency after way long inflation. Idea was fixing the exchange rate which shows stabilization in inflation and thus...
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...Economic Concepts The Economic Concepts in the Will Bury Goes Global Scenario are labor, entrepreneurial ability, and capital. By determining the time it will take to digitalize hardcopy books Will Bury is focusing on the labor. Because currently Will Bury himself is doing the entire work for digitalizing Will needs to concentrate on the labor factor of economic concepts and recruit trained employers for digitalizing hardcopy books. Will wants to maximize the profits; therefore Will has a dilemma on labor aspect because employing people will cost Will Bury to pay for the wages. Capital is the next economic concept in Will Bury Goes Global Scenario. According to McDonnel-Brue,” The capital includes all manufactured aids used in consumer services and producing consumer goods”(McDonnel-Brue, p. 23). For Gaining profits in digitalizing hardcopy books business Will Bury must develop facets and equipments for transforming the printed books into the digital soft copies. Will is capturing the difference between capital verse consumers when changing into digital sound from written copyrighted print. Entrepreneurial ability is the last economic concept in the Will Bury Goes Global Scenario. Entrepreneurial ability is factoring the risks into one and therefore entrepreneurial ability is the most important economic concept. According to McDonnel-Brue,” Entrepreneur is an innovator assuming risks for initiating projects and takes strategic decisions in business” (McDonnel-Brue, Pgs 23-24)...
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...BACKGROUND One World Language Center (the real name has been changed to provide anonymity) has been in operation since February 2013. Situated in the heart of Kuala Lumpur, it provides English language training for non-native speakers. The focus of their business is almost exclusively for international students. As part of its service, the center also manages the applications for VISA for the students, whose needs ranges from a month’s to a year’s stay. As a part of its marketing strategy, the center is located centrally at a prime location; its course syllabus and content is provided by the renowned Headway; it employs only native-speaking teaching staff; and its price is the most competitive amongst all similar language centers. Currently the center has over a hundred students but intends to expand its capacity further to 300 as it is has just acquired and renovating more office space in the same building. members of the organization | | | No. | Designation | Description | 1 | Owner | * Australian international of Kenyan descent * Multiple international businesses, including currency exchange, properties and retail markets * Responsible for recruitment of all employees, administrative and teachers * Solely responsible for salary scale of employees, and budget preparation | 2 | General Manager | * Djibouti international * Recently promoted from an operations manager, now doing the work of both the GM and the OM * Manages 3 marketing staff, an accountant...
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...Table of content Introduction 3 Overview of Jakarta 4 The International Marketing Mix 5 Product 5 Place 7 Pricing 8 Promotion 9 The market entry strategies 10 Conclusion: 11 Final remarks 11 Bibliography 12 Introduction As a second year Marketing student from the Katholieke Hogeschool Leuven, I wrote this paper in the context of the comprehensive assignment II. This assignment is an educational subject that belongs to the fourth semester of the bachelor Businessmanagement in Marketing. This comprehensive assignment was given to the students to learn and understand about the basic principles of international marketing. Each student was assigned to make a plan for a Belgian company that wants to export its product to another country. I recently got back from a long stay in Jakarta, the capital city of Indonesia. During this stay, I was confronted by the biggest problems of Jakarta. Which is traffic jam, pollution, parking and high car expenditure. Jakarta has a bad reputation for having some of the worst traffic-jams in the world. (www.thejakartaglobe.com) Belgium on the other hand is more environmentally friendly than ever. Smart mobility solutions have expanded in the past couple of years. So I decided to write an export plan for the Belgian company Zen Car. It’s a company with a new concept of green mobility. Its system of sharing electric, silent and non-pollutant cars is simple and practical. Zen car in Jakarta is the topic of this...
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...| An exchange rate is the price for which one currency is worth converted into another rate. The exchange rate is determined by the supply and demand conditions of relevant currencies in the market transaction of currency exchanges occur in the foreign exchange markets. For example, currently, the £1 is worth $1.67 which means that at this stage, the pound is stronger than the dollar. Businesses should ensure that they frequently check the exchange rates to see if any changes to their prices need to be made or if the exchange rate benefits them. If Iron Bru were to export a large amount of products to a country such as Germany or Poland, there will be an exchange rate applied which can then increase or decrease the amount of money the company would have to pay. The exchange rate occurs when a demand for the supply of goods is applied when making a transition. UK – Pounds | USA - Dollars | £1.00 | 1.20 | | Why may language be a barrier in selling IRN BRU in Germany? Give some examples of where language as caused difficulties in business. (Analysis)When exporting and importing to and from different countries, companies may find that communication problems will occur, mainly due to the fact that English may not be the first language spoken In that particular country. Iron Bru are a British manufactured company which means that when selling their products to countries where English isn’t spoken we could be a problem.32% of the German environment knows how to speak...
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...Data Storage and Architecture Kaplan University Introduction Commerce is the conducting of business; it could be buying, selling, marketing, or providing services. The newer forms of commerce are electronic commerce (e-commerce) and mobile commerce (m-commerce). The types of e-commerce are business-to-business, business-to-consumer, and consumer-to-consumer. The traditional commerce practice required consumers to buy at a retail location, order from catalogs over the phone, or fill out order forms to mail in. These processes where lengthy and inconvenient to consumers needing products fast or even business needing a rush order could still take weeks. E-commerce emerged eliminating the long processes of ordering and waiting on receipt of order, then processing; to just clicking buttons and shipment within hours or days. E-commerce and M-commerce have many benefits to businesses and consumers but as with any great thing there are challenges. In attempting to implement a multi-stage model for e-commerce with global systems, the key challenges are; cultural, language, time and distance, infrastructure, currency, and state, regional, and national laws. Cultural challenges Culture includes difference in morals and beliefs, language, currency, laws and the way individuals as well as businesses function. Cultural challenges occur when the major understandings and assumptions of the business leaders is different from the consumer or other business, in which business is to be conducted...
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...INTERNATIONAL MARKETING CHAPTER 1 – GLOBAL MARKETING IN THE FIRM Globalization – Reflects the trends of firms buying, developing, producing and selling products and services in most countries of the world Comparison of the Global Marketing and Management style between SMEs and LSEs * Resources (Financial, Business Education) * Formation of Strategy * Organization * Risk-taking * Flexibility * Economies of Scale and Scope * Use of information sources Economies of Scope – Reusing a resource from one business in additional businesses Should the company stay home or go abroad? * Industry Globalism. Mainly determined by the international marketing environment * Preparedness for Internationalization. Dependent on the firm`s ability to carry out strategies in the international marketplace, that is the actual skills in international business operations Development of the Global Marketing concept The form of the firm´s response to global market opportunities depends greatly on the management´s assumptions and beliefs about the nature of doing business around the world: * Ethnocentric - Home country is superior and their needs are the most relevant * Polycentric (Multidomestic)- Each country is unique and should be targeted in a different way * Geocentric- The firm may offer global products but with local adaptations * Regiocentric- The firm tries to integrate its marketing programme within regions Glocalization- Development...
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...International Marketing | PM 305 | | | OLANREWAJU OLABODE | I.D NUMBER 33344 | 3/19/2016 | | TABLE OF CONTENTS 1.0 Introduction............................................................................................................. ......3 2.0 Situational Analysis................................................................................................. ..4-7 3.0 Swot and Tow matrix................................................................................................ 7-10 4.0 Market Selection......................................................................................................... .11 5.0 Recommended Markets and Market entre Strategies............................................11-12 6.0 Marketing Strategies........................................................
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