...Switzerland vs. Mexico Switzerland My research paper will individually concentrate on Switzerland and Mexico in its history, competitive advantage, export, trading, and globalization. I will then compare and contrast both countries by their competitive advantage in the market, government intervention, trading, export, and globalization. The Switzerland economy is founded on an exceedingly competent labor force and skilled work. The principal areas consist of micro technology, hi-tech, biotechnology, and pharmaceuticals, also, includes banking and insurance knowledge. Switzerland was not the success story that it is today; in the late nineteenth century Switzerland was a poor nation and its major exports were mercenaries and emigrating citizens. By the early period of the twentieth century, Switzerland had emerged as an industrial nation of importance despite its small size. Switzerland was one of the richest nations in the postwar period and by the 1960 using some measures, Swiss per capita income was the highest in the world. The wealth of Switzerland is the outcome of national competitive advantage where there are shockingly numerous competitors in a wide range of advanced manufacturing and service industries and Switzerland a small nation was able to establish their competitive advantage over large nations and their competitors. The industrial success has allowed Swiss citizens to be employed at high wages and for many years the unemployment has affected...
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...Economy, by Daniel Yergin and Joseph Stanislaw (1998). The program consistently discusses the importance of globalization, without really giving a definition of globalization. The term of globalization is not neutral, it can mean different things to different people. As stated by The Globalization Website: “Globalization broadly refers to the expansion of global linkages, the organization of social life on a global scale, and the growth of a global consciousness, hence to the consolidation of world society. Such an ecumenical definition captures much of what the term commonly means, but its meaning is disputed. It encompasses several large processes; definitions differ in what they emphasize. Globalization is historically complex; definitions vary in the particular driving force they identify. The meaning of the term is itself a topic in global discussion; it may refer to "real" processes, to ideas that justify them, or to a way of thinking about them. The term is not neutral; definitions express different assessments of global change. Among critics of capitalism and global inequality, globalization now has an especially pejorative ring” (Lechner, 2000-2001). Episode 1 The first hour of episode 1, The Battle of Ideas, covered various aspects of different world economies and why globalization was important to the world. The video took the watcher through a tour of the decades, from 1917 to 1947 and the economic changes that happened during the various wars around the globe. The...
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...Introduction The focus of this case study is on the Vizio company and market for flat-panel TVs. However, most importantly Vizio’s unique use of globalization of production which gave them a competitive advantage in the market just as it was peaking. I found it important to do some research on the Vizio company to get a solid understanding of their background and history. The unique blend of origin, ethnicity and country of residence through much of his youth may have played a strong role in CEO, William Wang’s success with globalization. What started as a consultant business in 2002, later helped Gateway launch the first flat-panel TV under $3K and then Vizio found a niche in the flat-panel TV market which set them apart from their competitors. Globalization makes them successful today which is highlighted in the case. Their products are manufactured in Mexico with parts from across the world. Even their core mission and business model states, “VIZIO® lowers cost and increases efficiency by creating and orchestrating mutually desirable global partnerships.” This is definitely a company with a goal of producing affordable producing and passing on efficient manufacturing costs is exactly how they do it. Question #1: Why is the manufacturing of flat-panel TVs migrating to different locations around the world? Flat-panel TV technology is much like other products being manufactured around the globe in that the companies that are manufacturing the products are trying to...
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...Philosopher Laozi said: “Good fortune follows upon disaster; Disaster lurks within good fortune; Who can say how things will end? Perhaps there is no end.” So it is natural to oppose globalisation. There are many arguments from different views. Some political scientists argue that globalization is making nation-states weaken and that the functions and power of nation-states will gradually take over by global (Dreher et al.,2008). Economists argue that businesses is becoming more competitive and more and more workers may be laid off due to greater competition. For environment, globalization is using up finite resources more quickly and globalization increases world greenhouse gas with carbon dioxide emissions which makes the air pollution worse. For cultural, the uniqueness of cultural is lost in favour of homogenization and a "universal culture" that draws heavily from American culture. In this essay, I will focus on economics and environment aspect to discuss why people and some groups oppose to globalisation. In the global world, there are both positive and negative effects of globalisation for economics of developed and developing countries. McMichael (2001) stated that globalization can create a lot of new opportunities, new ideas, new...
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...In Mexico, complications from unsafe abortions are the fifth leading cause of maternal mortality (Suarez , Singh, Garcia, Diaz, & Olavarrieta n.d.). Religion is a key factor in the amount of abortions in Mexico. The people of Mexico are predominantly Roman Catholic, and one of the Ten Commandments that Catholicism preaches is “You shall not murder,” so women were told they’d be sent to hell if they were to terminate their pregnancies. Recently, throughout the past few decades, the abortion rates in Mexico have risen dramatically when the City of Mexico was the only state to legalize abortion. Questions as to why these rates have suddenly increased are being asked, and so the question, “how have the social views in Mexico changed from the 1990’s to today” will be able to answer such questions. The only national estimate for abortion available is for 1990, and social changes since then are the most likely cause for this increased...
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...foreign trade, which includes transactions (exports, imports,investments, and financing) that are performed worldwide. Corporations go international to locate resources that are hard to obtain in their country, or that can be found at a better price internationally. Globalization and the expansion of world trade have had a tremendous impact in the last decades bringing substantial benefits to countries around the world. As globalization increases everyday, many countries have created agreements to reduce barriers such as tariffs, export fees, and the reduction of restrictions on the movement of capital and investment. In 1994, the North American Free Trade agreement was created to remove most barriers to trade and invest between the United states, Mexico and Canada. Mexico has become the United States’ second-largest export market and third-largest trading partner due to demographic and geographic factors. Monterrey, the third largest city in Mexico and base of many multinational corporations, has taken advantage of this agreement to expand its businesses. This is the case of Grupo ALFA, leader in the production of processed meats and cheese and one of the most important telecommunications service companies in Mexico. This company acquired Bar-S Foods Co. leader in the U.S. packaged meat business to expand their market and generate additional profits. According to Armando Garza Sada, ALFA’s Chairman of the Board: “This is an important milestone in Sigma´s growth strategy. With...
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...Chapter 1 INTRODUCTION: GLOBALIZATION AND INTERNATIONAL TRADE We live in a world that is highly interconnected by a bewildering array of complex economic transactions, social and environmental problems, and international political collaborations and conflicts. Examples from global economics are found in the news everyday. A decision by American policymakers to subsidize the production of ethanol, a form of gasoline containing an additive produced from corn, is seen by many as a key reason that grain prices are high around the world. The spectacular emergence of China as a major exporter of manufactured goods has affected wages in both rich and poor countries. As large corporations, such as Microsoft, Intel, Toyota, General Electric, and Siemens have expanded their investments in affiliates in many nations around the world, they have built global production networks that share technological knowledge across locations to produce increasingly complex goods that could be sold anywhere. Today, a major cultural product, such as a Hollywood movie or a jazz band’s latest compact disk, is likely to employ creative personnel from around the world, with various components of the product recorded, mixed or edited in different locations. The importance of international connections in trade, investment, and skilled services can be illustrated by considering the apparently simple act of making and bringing to market an item of apparel, say a fashionable woolen men’s suit. The initial task...
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...Case 7: The Globalization of CEMEX Questions: 1. What benefits have CEMEX and the other global competitors in cement derived from globalization? More broadly, how can cross-border activities add value in an industry as apparently localized as cement? The globalization has significantly boosted profitability growth of companies in the cement industry through international trade and cross border investment flows. Possibility to operate in different foreign markets helps companies to diversify its business. It is highly beneficial strategy for cement companies because of the cyclical and economic downturns and upswings of the industry in different regions of the world. Also because of the localized specifics of cement production and high transportation costs cement companies began to invest in foreign producers. CEMEX was successful in its international expansion strategy as it created value through acquisitions- purchasing existing capacity rather than building new plants in the foreign market which in turn strengthened its presence through economies of scale. What is important CEMEX targeted companies which market value was lower than its underlying values: WACC, profitability, capacity etc. Geographic diversification had also reduced earnings volatility. For example when peso crisis happened in Mexico and Mexican cash flows could not be used for FDI, CEMEX used its non Mexican assets from Spain to further finance new acquisitions. 2. How specifically has CEMEX...
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...Economic Reform and Globalization Shahra Razavi United Nations Research Institute for Social Development (UNRISD) Palais des Nations 1211 Geneva 10 Switzerland razavi @unrisd.org May 2003 (first draft: not to be quoted or cited without permission of author) Background Paper for the UNESCO Education for All Monitoring Report 2003: Gender and Education for All Introduction The 1980s and 1990s are frequently referred to as the era of globalization. While there is no consensus on what the term “globalization” means, for the purposes of this paper we use the term to refer to the greater openness of economies to international trade and finance, or external liberalization. The question that this paper will be tackling is how globalization has impacted on the growth of real economies in diverse regional contexts (Section One), their capacity to create employment (Section Two), and specifically how the new policy agenda has impacted on women’s labour force participation in diverse regional contexts and their enjoyment of social rights (Sections Three and Four). In addition to the available global data sets, the paper will be drawing on in-depth case studies from around the world in order to support the arguments that are being put forward. 1. International Economic Integration and Economic Growth The purpose of this section is to look at the growth implications of globalization. However, to begin the...
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...Abstract Over the past few decades, the global scenario has changed considerably with increased interdependence amongst nations and economies. This intertwining amongst nations and sharing of ideas and technology has been termed as “Globalization”. Globalization has been a buzzword of late, with heated discussions about its pros and cons. Some consider it to be a blessing for mankind while others take it as a curse. For some it has brought about material prosperity while others have become unemployed due to it. This paper tries to analyse the effect of Increased International Trade and Globalisation on the US economy. The first section discusses the pros and cons of Globalization while the second section discusses how globalization has lead to increased foreign trade. Thereafter, it discusses the effect of globalisation and increased foreign trade on the American economy. Introduction Trade is believed to have taken place throughout much of recorded human history, whether as barter or in exchange of currency. Till the 1800’s, trade was limited due to difficulties in transportation, communication and restrictive trade policies. However, in the mid 19th century, with advent of free trade and nation advantage concepts, trade started to pick up (Daniels & Sullivan, International Business and Operation). Although international trade has been present throughout much of history, for example Silk Route, its economic, social, and political importance have increased in recent...
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...the idea of Globalization and global connections in today’s world. Globalisation has various definitions attributed to it, but it is mainly the ways that individual countries have teamed up and act together. The political meaning of globalisation is that the world is considered as one country sharing one citizenship; a global one. Treaties and agreements continue to solidify globalisation as they focus on unity. The United Nations is an example of a union created to encourage globalisation. It also makes sure that conflict between nations is handled democratically as to avoid wars. Globalisation takes also form in sociological terms. It means that human suffering and discrimination should be banned on global basis. International solidarity should be enforced. Globalisation in terms of culture refers to the fact that people with different cultures should show tolerance towards each other and to the transmission of ideas, meanings and values across world. Globalisation could not have been possible without the latest technology. The technological definition of globalisation therefore refers to the way communication was made possible with such advancements including the internet and telephones. Economical globalisation refers to the way countries now depend on each other economically for goods, service, technology and capital. Multinational companies are an example of how various countries interact with each other economically. As everything else in life, Globalization has its pros...
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...1. What made CEMEX go beyond domestic borders? CEMEX needed to go international for various reasons, the first was that when the Mexican economy opened up, it made the cement industry vulnerable to foreign threats. Due to this foreign competitors such as Holderbank and Lafarge, CEMEX needed to diversify geographically to grow and survive. Secondly, by acquiring two big cement companies at the end of 1980s, CEMEX owned already a big market share of the Mexican cement market, which made the growth in its domestic market not appealing anymore. Third, CEMEX wanted to fight against the seasonality of the cement Mexican industry and lower its dependence from the Mexican market. By going in foreign countries they were able to counter this seasonality effect especially in emerging country. This seasonality is explained for the fact that the consumption of cement during the summer is higher than during the winter (especially due to the rain). 2. On what differentiation did CEMEX sustain its competitiveness in the early days of internationalization? The CEMEX began the international business in the early 1970 when it began to export to the U.S. market. At that time, CEMEX, in order to differentiate themselves maintained a low price. CEMEX notice that the prices of cement in different counties were different. Which enabled CEMEX to make profit by diverting low-priced imports away from one’s own market. Since the cement industry is a rather mature industry, with several hundred years...
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...DIXON TICONDEROGA- Victim of Globalization? In today’s world, national economies are no longer self-contained with restrictions of the past whether it is by time zones, language, culture and differences in government restrictions. Dixon Ticonderoga Company being one of the oldest public companies in the United States is known predominantly for its No. 2 yellow pencil which was introduced in 1913. They were recognized as the second largest pencil manufacturer in the country at that time with annual revenues amounting to a little over $100 million dollars. (fundinguniverse.com) Within the 1990’s, Dixon was threatened with foreign competition where the Chinese began dumping pencils on the U.S market. Eventually, antidumping duties were placed on Chinese pencils, raising their prices in the process. This tactic by the American government proved futile as the Chinese produced a better product which continued to flood the US market. Trading has become much easier as barriers keep falling and businesses are now finding more opportunities internationally with the shift towards globalization. The Dixon Ticonderoga Company realized that this venture was going to improve sales and open new avenues for their slowly declining business. The company lost over $200 million dollars worth of business between the period of 1991 and 1999 leading them to explore cheaper ways in which to produce pencils, lower costs and eventually improve overall business. Steps included finding wood for production...
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...Trafficking between the United States and Mexico: The Drug Trafficking Nexus Transnational Crime and Globalization By: Katrina T. Mason May 2, 2008 The United States is quite known for their proactive stances on the “War on Drugs”, “War on Terror”, and “War in Iraq”. Some view them as the international police and others view them as the international fiend, but it is in no doubt that the United States takes a very active stance in fighting what they believe is evil and wrong within the world. This is increasingly true for the evils that occur within its own borders such as the continued drug epidemic, domestic violence, child abuse, poverty, gangs, and prostitution (with the exception of Nevada). Unfortunately though, the United States’ stance on legal activities crossing from their own governance into neighboring states where the activity is illegal is not held with the same level of concern or dedication. A primary example of this double standard can be seen on the Mexican-United States border. This is not in reference to the debris from the giant wall being built on the Mexican border falling to the southern side, the young Americans fleeing across the borders to intoxicate themselves, or even the revolution of McDonalds springing up in towns throughout Mexico; but instead to the small arms and light weapons trafficking continually flowing down from the border states into Mexico causing alarming murder rates, economical...
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...Wal-Mart entered the Mexican market in 1991 and hasn’t looked back. Using a form of globalization called glocalization, Wal-Mart achieved tremendous success in Mexico. The perception of Wal-Mart globally is less than stellar because of what has been coined as Wal-Martization. Some have also called Wal-Mart a ‘Cathedral of Consumption.’ But Wal-Mart learned the hard way how to become successful in the global marketplace. It didn’t just happen overnight. By utilizing five glocalization strategies, Wal-Mart became the largest private employer in Mexico. Wal-Martization is a philosophy where faster, better and cheaper are words used to describe their process. More words that define Wal-Martization are bigger, global and standardized. While Wal-Mart is known for its everyday low pricing, it also has a few negative connotations associated with it. They include its anti-union poilicies, downward pressure on manufacturers, low salaries for employees and its merciless expansion practices. When Wal-Mart comes to town local shop owners panic because Wal-Mart can reduce prices as much as it wants and the local businesses can’t compete with that. Sam Walton opened the first Wal-Mart in Bentonville, Arkansas, in 1962. By 1979 Wal-Mart was making $1 billion in annual sales. By 1993 it was making $1 billion in weekly sales. And by 2001, Wal-Mart began making $1 billion in sales each day. According to its official website, corporate.walmart.com, Wal-Mart is currently in 27 countries...
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