...1. Arla Foods acted upon the abolishment of the milk quota by the European Union. Janus Skot, the senior director of Arla Foods Latin America and the Caribbean (LATAM), was attempting to build a competitive advantage in Latin America because of their milk deficit. Janus was slowly accomplishing his business goals by developing a strategy to work with local partners to integrate into local retail chains. Janus could not do this by himself; he had a team supporting him. Janus received his MBA from Denmark and held many positions in various Danish firms. He began working for Arla as an export manager and after work a few different international positions; he branched off into his own international distribution market known as LATAM. Other European professionals that were well versed in international trade supported him. Beret Jeanette Haven Andersen and Lars Tang Mikkelsen were two of these people. Arla Food has an ethnocentric orientation because they only employed European professionals in the key positions. “An ethnocentric company operates under the assumption that tried and true headquarters’ knowledge and organizational capabilities can be applied in other parts of the world” (Keegan 17). This is seen when Janus hired other European graduates to fill his key positions. They easily filled those positions because they had the proper credentials and educational history that Janus needed. Although the company is mainly ethnocentric, they have an advantage...
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...Industry Last Updated: June 2012 Introduction The food services sector in India is expected to witness a 50 per cent increase in investments in 2012 to about US$ 750 million, as food suppliers and retail companies plan to scale up business and stay competitive by tapping the large potential of the domestic market. Of the total investments of US$ 750 million in 2012, about US$ 165 million has gone into purely front-end retail, such as fast moving consumer goods (FMCG), food and beverage firms. India is the world's largest milk producer, accounting for around 17 per cent of the global milk production, according to RNCOS research report titled, 'Indian Dairy Industry Analysis'. The study anticipates that the milk production in India will grow at a compound annual growth rate (CAGR) of around 4 per cent during 2011-2015. Further, India has emerged as one of the largest potential markets for organic food consumption globally. The organic food is invariably catching up pace among the Indian retailers, especially with the niche retailers owing to wide awakening among Indian consumers towards leading a healthy life, as per RNCOS research report titled, 'Indian Organic Food Market Analysis'. We anticipate that the sector will post significant growth during 2011-2013, growing at a CAGR of 15 per cent. Indians spend US$ 64 billion annually on eating out, which includes $13 billion on eating in quick-service restaurants (QSRs) such as McDonald's and Costa Coffee, propelling the industry...
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...Abstract This paper examines the impact of NAFTA on trade as well as migration flows between Mexico, Canada, and the United States in the textile industry. Several questions are being investigated: Why did many textile jobs apparently migrate out of the United States in the years after the establishment of NAFTA? Who gained and lost from the process of readjustment in the textile industry after NAFTA? The act whether to protect or not to protect the textile industry when a free trade agreements? The findings show that the migration of many textile jobs out, mostly Mexico was mainly due to a cheaper and enhanced plants included with a flood of cheap labour compared to the United States. Certain quarters like the people of Mexico, people of the United States, apparel companies, and etc both benefits and lost at the same time. The impact on long-term trends were noticeable, while the short-run impact is more difficult to assess due to competing factors such as changes in business cycle patterns, immigration laws, economical climate, weather conditions, and exchange rate movements. Finally, there is the idea that protecting the textile industry from painful free trade agreement is not a perfect solution, bringing a solid and positive outcome to many with only a little much to sacrifice for the betterment of the countries’ wealth and dependency. Introduction The first major international trade agreement in the world was the General Agreement on Tariffs and Trade (GATT) formed in...
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...1. US sets preliminary anti dumping duties on steel rebar from Mexico and Turkey Source: www.steelguru.com - Wednesday, 23 Apr 2014 Reuters reported that the US Commerce Department set preliminary duties on millions of dollars worth of imports of steel rebar from Mexico and Turkey after a complaint by US producers about price undercutting by foreign competitors. The department set dumping duties of up to 66.7% on imports from Mexico and duties of up to 2.6% on Turkish imports after American producers alleged companies from the two countries were selling steel rebar, which is used to reinforce concrete, at unfairly low prices. A final decision is due on July 2. The US International Trade Commission and the Commerce Department launched investigations after a petition was filed last year by Nucor Corporation, Commercial Metals Company and other manufacturers. The trade commission found there was reasonable indication the imports are harming local firms. Mr John Ferriola CEO of Nucor said that “Imports from Mexico and Turkey had doubled since 2010 and were having a devastating impact on the industry”. Commerce said that in 2013 imports of steel concrete reinforcing bar from Mexico were valued at an estimated USD 182.1 million and from Turkey at USD 381.3 million. The manufacturers accuse Mexican and Turkish competitors of unfairly undercutting US prices to grab sales and market share, a trade strategy known as dumping. US manufacturers also claimed rebar imports...
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... The 3 commodities chosen are 1) Tobacco leaf 2) Walnuts 3) Buffalo meat 1) Tobacco leaf: Tobacco, one of the most widely-used addictive substances in the world, is a plant native to the Americas and historically one of the half-dozen most important crops grown by American farmers. From 1617 to 1793 tobacco was the most valuable staple export from the English American mainland colonies and the United States. Until the 1960s, the United States not only grew but also manufactured and exported more tobacco than any other country. The largest tobacco company in the world by volume is China National Tobacco Co... World tobacco leaf exports from 2010-2011 averaged 1.98 million tonnes per year which the FAO expects to grow by 1% to 2.2 million by 2012. Today developing nations are responsible for almost 65% of global tobacco exports, while developed countries account for the remainder. Of the countries below, the domestic economies of Zimbabwe and Malawi depend most heavily on tobacco exports to the rest of the world. Production by country: Country or region Production in thousands of tons China 2,298.8 India 595.4 Brazil 520.7 United States 408.2 European Union 314.5 Zimbabwe 204.9 Turkey 193.9 Indonesia...
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...PA R T B go online Go online to to find more case studies. CASE STUDY B Crisis management in international markets: ‘least said, soonest mended?’ John Knight, Department of Marketing, University of Otago and Bradley Mitchell, Inveratek Group Ltd 347 BACKGROUND An inevitable reality of doing business in the modern world is that crises recognise no boundaries (Fink 1986). A crisis management strategy needs to be part of the overall corporate strategy of any company operating internationally. Our chaotic times have led to some spectacular commercial crises. Sometimes these have been of companies’ own making through carelessness. A well-known example is the action of McDonald’s in promoting its sponsorship of the 1994 football World Cup by printing the flags of all competing nations on disposable packaging: the name of Allah is on the Saudi flag, and deep offence was caused by the fact that this was to be thrown away with the packaging (Starrett 1995). At other times crises have been caused by events completely outside of the control of the company. Examples of the latter include the deliberate product tampering of Tylenol products, leading to deaths by poisoning in the USA, and the massive product recall of Coca-Cola products in Belgium resulting from what appears to be a case of mass hysteria (Johnson and Peppas 2003). Furthermore, companies in the midst of a crisis may not be able to control the behaviour of others, but with proper planning and management the...
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...confectionery products are snacks, dairy and bakery products which is easily available in the market. Competitors- c4 ratio for chocolate is very high (86%). But c4 ratio for candy is very low (17%). It means chocolate market is very competitive as compared to candy. Supplier power- supplier power is low because most of the firm has its own supplier. Entry barrier: chocolate- high, high investment requires. Candy –low. Arcor: Arcor, world’s 13th largest and Argentina’s largest confectionary manufacturer is planning an international growth strategy at a time when Argentina is recovering from the worst financial crisis. Arcor has grown both volume and value to be a global player in the confectionary industry. Arcor value proposition 1. Self-sufficiency in producing product input. 2. Low cost, high in volume and offering wide variety of products. 3. Efficient production capability. (1) Arcor global strategy Latin America: Taste preferences and consumption of Latin America is pretty similar to Argentina. So Neighboring country had historically been center of attraction of Arcor. They already had distribution capabilities, sales force, local offices and multiple factories. Arcor had faced difficulty in Mexico because it lacked a good distribution model and had not mastered local tastes. North America USA: Arcor faced difficulty when it entered into the US. 1/3 of total global consumption of confectionary market is consumed by the US people. Market is...
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...MASTER IN BUSINESS ADMINISTRATION INDIVIDUAL ASSIGNMENT SUBJECT: MANAGING IN THE ECONOMY SUBJECT CODE: MGT6233 NAME : GIRISH S/O GOPAL 810602 -01 – 6275 I/C : STUDENT ID : 01130024 LECTURER : MS.SANDRAKALA 2 Executive summary Free trade refers to trade between countries without tariff and non-tariff barriers on exports and imports. In another word, free trade refers to trade without government interference. Classical economists such as Adam Smith and David Ricardo have advocated that free trade improves the economic well being of a country by increasing the production of a country and allowing efficient allocation of resources, thus increasing global production and promoting peaceful and prosperous global environment. In the global basis, World Trade Organization formed after GATT in 1995 promotes trade liberalization through multilateral negotiation. On the other hand, in the regional basis, countries are forming regional economic integration to promote free trade stage by stage. The initial stage is known as Free trade areas (FTAs) under which they agree to remove tariffs and non-tariff limitations on trade in products between themselves. Despite all these initiates, governments around the world are still imposing various restriction on trade between countries to protect its own industries such as agriculture which is considered as the backbone of a country. Therefore, this report will discuss the concept of free trade, trade theories...
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...Economy and Society Volume 37 Number 2 May 2008: 193Á223 Regional trade agreements and the pursuit of state interests: institutional perspectives from NAFTA and Mercosur Francesco Duina and Jason Buxbaum Abstract Are regional trade agreements (RTAs) carefully crafted projects that systematically advance their member states’ interests or do they instead generate outcomes that frustrate those interests? Works on the most prominent RTA Á the European Union Á have traditionally been split over this question. New research on international organizations parallels that literature. Combining rational choice and historical institutionalism, this article makes a middle-ground case: the limited rationality of national representatives and the complexity of RTAs ensure both the advancement and frustration of national interests. The focus is on shifting national preferences, the unpredictable implications of decisions over time and the pursuit of short-term gains to the benefit of some constituents but not others. Evidence from NAFTA and Mercosur supports these claims while highlighting, in line with recent scholarship, the need to include politics in institutionalist accounts of integration. The conclusion reflects on the findings and explores whether alternative, more flexible designs for RTAs might satisfy more fully the interests of the member states. Keywords: regional trade agreements; rational choice institutionalism; historical institutionalism; NAFTA; Mercosur; international...
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...ECONOMIC INTEGRATION COMPARTIBILITY WITH FREE TRADE POLICY. This discussion focusses on how particular types of commodity programs are affected by opening up international markets.the impacts of policies such as price supports, marketing quotas and direct payment programs may be affected by free trade. In this discussion i analyze the effects of a free trade agreement on welfare, budget costs, and other policy objectives under a variety of stylized commodity programs (as in McCalla and Josling, 1985). These programs are examined using a series of figures that illustrate the economic impact of free trade on a country that has a particular commodity program in place. Commodity program cases considered are: (1) a production subsidy which is sufficient to exclude imports; (2) a production subsidy under which some imports flow under free trade; (3) a price support; (4) a production quota which is held fixed in response to imports; (5) a production quota which is adjusted when free trade is introduced; and (6) direct payments unrelated to current output. In each figure i show only two countries; the country with the domestic policy upon which i focus is labeled "home", the other country is labeled "foreign". For simplicity, i examine cases in which there is no trade initially and only the home country has an internal commodity...
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...opened its first overseas factory in Tasmania, Australia. In 1969 Cadbury merged with Schweppes (an Australian based drink company). In 2003, the humble Birmingham chocolate becomes the world's number one confectionery company with the acquisition of US chewing gum giant Adams. In 2008, Cadbury launched the Cadbury Cocoa Partnership. £45 million was put aside to put into cocoa farms in Ghana, India, Indonesia and the Caribbean over a decade. In 2010, Cadbury was bought by American food behemoth Kraft Foods in an £11.5bn deal. In 2012, a new global research and devlopment centre opened in Bourneville as part of a £17 million investment in R&D in the UK. CADBURY WORLDWIDE Cadbury enjoys a value market share of over 70% - the highest Cadbury brand share in the world. Cadbury is the largest confectionary company in the world and has its presence in Beverages in Australia and Americas. The brands that are enjoyed in almost every country around the world are Schweppes, Halls, Trident, Dr Pepper, Snapple, Trebor, Dentyne, Bubblicious, and Bassett. 12 Focus Markets of Cadbury USA INDIA CHINA SOUTH AFRICA JAPAN BRAZIL MEXICO UK...
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...Deloitte International Tax and Business Guides, provides information on Denmark regarding the investment climate, operating conditions and its tax system. If a company’s objective is to expand internationally, and is properly structured, a Denmark holding company can act as a legally tax-exempt conduit for dividends received from subsidiaries around the world (1). A Denmark holding company is legally exempt from dividends tax received from a foreign subsidiary (1). Denmark levies no withholding tax on dividends paid to the foreign parent. Additionally, a holding company is not required to pay capital gains tax on shares held for more than three years (1). A Denmark company has access to a network of double taxation treaties Denmark has signed with major trading nations around the world. A minimum of one shareholder and one director is required for Denmark company formation. The shareholder and director can be the same person, and need not be resident in Denmark (1). Denmark’s ranked as the world's 11th freest economy in the Heritage Foundation's 2012 Index of Economic Freedom, which measures freedom as it relates in business, trade, monetary, financial, investment and labor markets (Appendix 3). Denmark’s GDP per capita (PPP) for 2011 was estimated at $40,200 USD. Denmark's fiscal position remains among the strongest in the EU at 46.5% of GDP in 2011 (Appendix 4). In its 2012 World Competitiveness Yearbook, the Switzerland-based IMD positively ranks...
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...North American Economic Integration: NAFTA and Beyond Dr. Igor M. Paramonov, Southern Alberta Institute of Technology, Calgary, AB, Canada ABSTRACT This paper examines various possibilities for future economic integration within and beyond the North American Free Trade Agreement (NAFTA). Previous publications have suggested three potential trajectories including development within the envisioned original structure, deepening, and widening of NAFTA (Clement et al, 1999). It is necessary to revisit these directions while summarizing major developments and new perspectives. Vision and hard work are required for NAFTA to remain one of the most economically competitive regional trading arrangements in the world. In addition to NAFTA, each member nation has pursued its own plans to integrate with countries and regions beyond North America. The most recent developments involve trade negotiations between Canada and the European Union, as well as both Canada and Mexico’s considerations to join the nine countries of the Trans-Pacific Partnership Pact. The United States cooperates with a group of smaller developing economies within the Dominican Republic-Central America-United States Free Trade Agreement (CAFTA-DR). This paper presents ongoing analysis of governmental, academic, and other sources for the purpose of teaching in the field of international business, including the uncommon course of “Business under NAFTA.” INTRODUCTION Is the “Age of NAFTA” over? This is a legitimate...
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...Nestle From bean to bar – the production process Summary Concepts: Production, chocolate, cocoa, beans, Nestlé, manufacturing, chain, market, consumers, raw materials, economy, supply chain, industry, resources. Summary: Amazingly, UK consumers have a choice of over 5,000 chocolate lines available from 150,000 outlets. Because it is so widely and readily available, we tend to take chocolate for granted, and few of us probably ever consider what is involved in producing it. We don't know who first discovered that cocoa beans could be turned into a drink, but we do know that by 600AD the Mayan people living in what is now Mexico were growing cocoa in the jungles of Yucatan. In the mid-19th century an English cocoa manufacturer, Joseph Storrs Fry, tried mixing cocoa butter with sugar and cocoa paste and invented the world's first solid blocks of chocolate. All over the world you will find prominent brands first developed in the UK e.g. Smarties, Dairy Milk, Aero and of course Kit Kat (the UK's Number 1 selling confectionery brand since 1985). Boxed chocolates such as Quality Street make up 15% of the confectionery market. Blocks and bars like Kit Kat and Yorkie account for 65% and bitesize chocolates e.g. Smarties and Rolo make up 10% Chocolate manufacture provides steady employment and job security for tens of thousands of employees in manufacturing locations like York and Birmingham. The industry also generates jobs in marketing, administration...
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...G.SAI KIRAN 1226113115 NON ALCOHOLIC BEVERAGE INDUSTIRY: SOFT DRINKS SUMMERY: Non-alcoholic beverages sector, which is currently being looked at as a non-corporate small- and medium-scale dominated segment, needs extensive reforms in order to develop as a complete corporate sector. In 1993, the consumption of aerated beverages in India was a meager three servings, per person, per annum. Cut to 2013, industry estimates cite that Indians have a per capita consumption of 14 servings. While that’s small when you compare the global average of 94 servings, India, because of the sheer weight of its population, is a huge force to reckon with for the world’s leading food and beverage corporations. Currently the influx of FDI in overall food processing sector is 1.8% of the total FDI ($147.08 billion) India got between 2001 and 2011. Out of this, the non- alcoholic beverage sector got approximately $19.44 million under automatic route while its contribution to India’s GDP was around $1.6 billion. Companies under the Indian beverages sector have operations in more than one state and the difference in taxation and other factors create barrier for the sector. Issues like implementation of GST (Goods and Services Tax) would certainly help the entire F&B industry. Inflation has got entrenched and monetary policy does not have any or has very little impact on food prices and fuel prices, food grain prices were moving upwards faster than other food items. The increase in the general...
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