...GLOBAL INTEGRATION: ADVANTAGES AND DISADVANTAGES Globalization is the process by which different societies, cultures, and regional economies integrate through a worldwide network of political ideas through transportation, communication, and trade. Generally, globalization has affected many nations in various ways; economically, politically, and socially. It is a term that refers to the fast integration and interdependence of various nations, which shapes the world affairs on a global level. Globalization has affected the products people consume, the environment, culture, security, and idea exchange between different countries. There are many factors that lead to the speedy globalization trends. This acceleration in globalization can be attributed to an increase in free-trade activities, emerging technologies, or the worldwide acceptance of markets. Globalization has affected cultures and economies on matters dealing with environmental destruction and availability of the already limited resources. Globalization has had diverse implications for environmental issues such as, pollution, deforestation, water resources climate change, and biodiversity loss. The rampant environmental problems have become the subject of international efforts because the effects are felt globally. The negative impacts of globalization focus on the destruction on the environment that is export-oriented. On the other hand, the positive impacts are the multinational companies research into technology...
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...Global integration and international HRM The case of global HRM integration Global integration can be said to be about the achievement of at least one of three key objectives: The control of foreign subsidiaries. Global integration from a control perspective is thus both about control and co-ordination with these being used in combination to achieve consistency of international business activities across borders. The transfer of practices to those subsidiaries The transfer of firm-specific practices for the purposes of achieving consistency and alignment amongst foreign subsidiaries also addresses the need to intergrade dispersed knowledge and practices, which is argued to be an important basis for competitive advantage firm. The appropriate adaptation of activities that requires both an understanding of parent practices and local conditions. Drivers of Global integration 1. Environmental drivers The novelty and limits of globalization notwithstanding, there are many features of globalization that are making global integration more feasible, more desirable and even more necessary. Few of them are the diminishing significance of national borders, supernational integration, the dismantling of trade and investment barriers etc. Environmental drivers of global integration put pressure on MNCs to take a course of action regarding their international strategy and structure. 2. Strategic drivers capture the business advantages...
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...Int. J. of Human Resource Management 18:11 November 2007 1895– 1916 The global integration of diversity management: a longitudinal case study Aulikki Sippola and Adam Smale Abstract Whilst the extant diversity management literature has provided a comprehensive array of theoretical frameworks and empirical studies on how organizations can and have approached the management of a diverse workforce, the same cannot be said about the literature on diversity in an international setting. Indeed, from a diversity management perspective we know surprisingly little about how multinational firms are responding to the increasing globalization of their workforce. This study seeks to contribute to this underresearched area through an in-depth longitudinal case study of TRANSCO, a well-known European MNC, which has been attempting to integrate diversity management globally throughout its worldwide operations. Adopting a Finnish host-country perspective, the study investigates what TRANSCO has been integrating, how it has tried to facilitate this and the challenges that have arisen throughout the process. The results indicate that TRANSCO has committed a considerable amount of resources to the global diversity management integration process, reflected in the myriad of integration mechanisms utilized. In terms of their integration strategy, it was evident that TRANSCO was able to achieve global consistency at the level of diversity philosophy, but was forced to rely on a more multi-domestic...
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...OCCasIOnal PaPEr • no. 2/2010 REGIONAL ECONOMIC INTEGRATION IN ASIA: THE TRACK RECORD AND PROSPECTS By Razeen Sally Razeen Sally (razeen.sally@ecipe.org) is Director of ECIPE and on the faculty of the London School of Economics www.ecipe.org info@ecipe.org Rue Belliard 4-6, 1040 Brussels, Belgium Phone +32 (0)2 289 1350 ECIPE OCCASIONAL PAPER ExECuTIvE SuMMARy This is the season for regional-integration initiatives in Asia. There is talk of region-wide FTAs, and there are east-Asian initiatives on financial and monetary cooperation. But grand visions for Asian regional blocs are not achievable. Regional economic integration is most developed in east Asia, but only because of manufacturing supply chains linked to global markets. South Asia is the most malintegrated region in the world. And east and south Asia are much less integrated in finance than they are in trade and FDI – due to highly restrictive national policies governing financial markets. Asia’s existing FTAs are “trade light”. They are largely limited to tariff cuts, but have barely tackled non-tariff regulatory barriers in goods, services and investment, and are bedevilled by complex rules of origin requirements. An APEC FTA initiative has gone nowhere – entirely predictable given such a large, heterogeneous grouping. An east-Asian or a pan-Asian FTA, by discriminating against third countries, would compromise regional production networks linked to global supply chains. Moreover, huge economic gaps and...
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...and academic journals approached various reasons and conclusions regarding whether vertical integration results in the most profitable application of a merger structure versus considering a horizontal or diversified integration approach. Hence, the topic surfaced during Satterlee’s (2018) comments relating to multinational corporations (MNC) and the three extensive types of MNCs concerning production, operations management, and functionality as the operational focus. Therefore, further research may reveal if one type of integration is more applicable when one considers a production merger or an operations style merger among the corporations considering these financial endeavors and...
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...• Chapter 9: Regional Economic Integration o Regional Integration and Economic Blocs • Under regional economic integration, groups of countries form alliances to promote free trade, cross-national investment, and other mutual goals. • This integration results from regional economic integration blocs (or economic blocs), in which member countries agree to eliminate tariffs and other restrictions on the cross-national flow of products, services, capital, and, in more advanced stages, labor within the bloc. • At minimum, the countries in an economic bloc become parties to a free trade agreement, which eliminates tariffs, quotas, and other trade barriers. o Levels of Regional Integration • For countries that become members of an economic bloc, there are various stages of regional integration. • First is the free trade area, which eliminates tariffs and other trade barriers. • Second is the customs union, a free trade area in which common trade barriers are imposed on nonmember countries. • Third is the common market, a customs union in which factors of production move freely among the members. • Fourth is the economic union, a common market in which some important economic policies are harmonized among the member states. • A true political union does not yet exist. o The Leading Economic Blocs • There are hundreds of economic integration agreements in the world. • The European Union (EU) is the most advanced, comprising twenty-seven countries in Europe. • It...
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...Q4) Key Differences Between Centralization and Decentralization The following are the major differences between centralization and decentralization: 1. The unification of powers and authorities, in the hands of high level management is known as Centralization. Decentralization means dispersal of powers and authorities by the top level to the functional level management. 2. Centralization is best for a small sized organization, but large sized organization should practice decentralization. 3. In centralization formal communication flow is there. Conversely, in decentralization, communication stretches in all directions. 4. In centralization due to concentration of powers in the hands of a single person, the decision takes time. On the other hand, decentralization proves better in terms of decision making as the decisions are taken much closer to the actions. 5. There is full leadership and coordination in Centralization. Decentralization, shares the burden of the toplevel managers. The reason for centralization is inadequate control over the organization, but the reason for decentralization is good and effective control over the same. Conclusion The difference between centralization and decentralization is one of the hot topics these days. Some people think that centralization is better while others are in favor of decentralization. In ancient times, people used to run their organization in a centralized manner, but now the scenario has been changed completely...
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...results. Strategy formation is the process by which an organization develops and implements a strategy. All steps of the process should be followed in order because they build upon each other. The other steps of the process include value assessment, vision and mission formulation, strategy design, performance audit analysis, action plan development, contingency planning and implementation. 5.1 Integration Strategies In the competitive world of business, companies generally do whatever it takes to secure their stature in the marketplace. One of the most effective means to this end involves what is referred to as vertical integration, which takes on two forms: forward and backward integration. Forward integration focuses on the manner in which a company oversees its product distribution. On the other hand, the backward form concentrates on how a company regulates its goods or supplies. 5.1.1 Forward integration Forward integration is a type of vertical integration which a supplier acquires a manufacturer or a manufacturer acquires a distributor. Businesses engage in forward integration either to generate a higher margin from a key input which it owns or produces or to better market its products and increase its profitability. Dr. Gerhard Bester, an Agricultural Research and Development Director, our aim is to ensure PepsiCo has continued access to the key agricultural raw materials necessary to supply growing consumer needs, while respecting the environment and communities...
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...Global and Domestic Issues in the Food Supply Chain (Source: Roger W. Hutt, Arizona State University) High-value and processed foods, accounting for three-fourths of total world food sales have increased in response to consumers diversifying their diets or demanding higher-quality and labor-saving food products (Regmi and Gehlhar, 2005). More and more, consumers are asking for convenience, and the food system is responding. The relatively higher cost of a ready-to-serve bag of salad is preferable to a head of lettuce that must be trimmed and prepared. Demand for foreign brands and consumer-ready products, in particular, are expanding as well. Food producers and marketers are responding to the demands of the marketplace. Producers are investing in processing facilities in many host companies. Adjusting to meet the needs of consumers, retailers are importing high-value foods from around the world and selling it from a variety of retail store formats, with supermarkets and hypermarkets accounting for more than fifty-percent of global packaged food sales in 2003 (U. S. Department of Agriculture, Global Food Industry Structure, 2007). Globalization and safety and defense of the nation’s food system are themes very much intertwined in the literature. As Cheek (2006) pointed out, “Today, global consumers are demanding a source-verified and disease-free food supply. . . Changing consumer attitudes have resulted in demands for greater food safety on the retail market.”...
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...engine. It is a special new technology which is energy saving. The main strategies include business strategy, global strategy and corporate strategy includeing the alliance. Nissan's business strategy of EVs is differentiation. Because of the feature of Nissan's product is different from most of products in other vehicle company. It's a new technology which is all electric vehicle and zero emission. Unlike several companies, Nissan does not choose to produce hybird vehicles like HEV and PHEV. Instead, Nissan focused on complete electronic vehicle like the model of LEAF. Nissan also has two of its own business models for their EVs. The first one is to sell the car and the battery at one unit, which is same with other auto makers. But the second one is sell the car and leasing the batteries which is unique. In terms of reputation based on social culture, it's all win. Since the LEAF is good for environment and good for public. On the other hand, Nissan does not selling low price as their strategy in order to attract customers. Instead, Nissan focuses more on service. It said that in essence it was selling a car plus its services. Furthermore, Nissan implements the global strategy to better enter the global market. The LEAF has already entered U.S. and the markets in some European countries. They still focus on entering...
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...company and implement them where appropriate( Post merger Integration (PMI) process) ➢ Forward Integration ➢ In order support communication and decision making process the company has deployed satellite communication system, CEMEXNET, • The company uses its capital to acquire other companies ➢ Acquiring, building or buying terminal facilities in other markets and buy other companies in order to facilitate global expansion • This company exert effort to create common culture and common processes ➢ Standardized of business processes, technology, and organizational structure across all countries while simultaneously granting countries certain operational flexibility b) Illustrate how CEMEX has managed to attain a high level of operational efficiency throughout its distributed operations without a complex organizational structure. • Developed core competencies • Learning through the process of acquisition and integration • Innovative marketing and operations • Standardization of best practices, technology and organizational structure • Disposal of non-related businesses and non-core assets by management • Implement key information and internet based technology • Successful acquisition and short integration process(Successful Implementation of post-merger integration (PMI) process)...
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...The East Asia’ Regional Economic Integration Tutor: Griffith, Edward Student ID: 20647046 Student Name: Hong Xu (Eric) Word Count: 2369 Date of Submission: 18/1/2016 The East Asia’ Regional Economic Integration In the past twenty years, the East Asian economies realized the freedom of foreign trade and direct investment (FDI) because of the influence of GATT/WTO and APEC and as a result, it further promotes the economic growth of East Asia. The mutual economic dependence of each countries has increased a lot and therefore, close economic cooperation among Asian countries is necessary for healthy economic development. Many countries try to deepen their cooperation by establishing agreement and carrying out negotiation or discussion (Kawai 2004). Besides, the East Asian countries want to have their own institutions where they have vital voice in decision making after the financial crisis. As a consequence, the regional economic integration become an inevitable trend. The structure of this essay is organized as follows. The first part of this essay will discuss the driving forces of...
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...Three generic strategies, including advantages and disadvantages (cost, differentiation and focus - major emphasis) Overall cost leadership is based on creating a low-cost position relative to a firm’s peers, managing relationships throughout the entire value chain to lower costs. (McDonalds, Walmart) Pitfall: Too much focus on one or a few value chain activities. Increase in the cost of the inputs on which the advantage is based. The strategy is imitated too easily. A lack of parity on differentiation. Reduced flexibility. Obsolescence of the basis of a cost advantage. Differentiation implies products and services that are unique & valued, emphasis on non-price attributes for which customers will gladly pay a premium. (Apple, Target) Pitfall: Uniqueness that is not valuable. Too much differentiation. Too high a price premium. Differentiation that is easily imitated. Dilution of brand identification through product line extensions. Perceptions of differentiation may vary between buyer and sellers. Focus strategy requires narrow product lines, buyer segments, ore targeted geographic markets, advantages obtained either through differentiation or cost leadership. (Ikea, Costco) Pitfall: Erosion of cost advantages within the narrow segment. Highly focused products and services are still subject to competition from new entrants & from imitation. Focusers can become too focused to satisfy buyer needs. - Industry Lifecycle (major emphasis) Introduction:...
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...Economic Integration, according to Investopedia online, is, “an economic arrangement between different regions marked by the reduction or elimination of trade barriers and the coordination of monetary and fiscal policies. The aim of economic integration is to reduce costs for both consumers and producers, as well as to increase trade between the countries taking part in the agreement.” According to Norman Girwan, in his paper entitled, ‘Caricom’s Elusive Quest For Economic Integration,’ the Caribbean needed to integrate for similar reasons. Girwan states that the move toward such integration was driven by the need to mitigate against the constraints of small size on development, as well as there were other non-eceonomic objectives. These included “attaining national independence, sharing the costs of common services, pooling bargaining power in international environment and instituting a common West Indian identity.” Girwan continues by stating emphatically that “economic integration is still a work in progress for the Caribbean peoples; and what has been accomplished so far has not impacted significantly on regional economic development.” He attests that “this could be due to faulty implementation of agreed integration schemes, or to inappropriate design of the schemes themselves, or to inherent limits in the capacity of economic integration per se to drive development in these economies.” In a similar manner, Mehmet Ekizoglu, in his paper Mercosur, It’s History, Institutions...
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...President Aquino: APEC Philippines 2015 to Build More “Inclusive Economies”inShare The Philippines is intent on building on the significant breakthroughs in trade and economic sustainability achieved by APEC member economies this year in China and ensuring that the benefits are widely felt, said President Benigno Aquino III on the eve of the archipelago’s commencement as APEC 2015 Chair. Establishing a more inclusive economic environment across the Asia-Pacific will be the focus of collaboration in APEC over the coming year, revealed President Aquino in a kick-off speech in Manila on Monday evening. It set the tone for the APEC Informal Senior Officials’ Meeting on 8-9 December in Legazpi City, Albay that will mark the first assembly of member economies as part of APEC Philippines 2015 and decide their agenda priorities. “One week from now, we’ll be demonstrating a thousand per cent effort – the first visitors for APEC 2015 will set foot in our country, and the Philippines will have the distinct privilege of hosting the next chapter in one of the largest joint efforts to improve trade and cooperation amongst major economies,” said President Aquino. “Here, within our communities, leaders from government and the private sector will map out the future of the Asia-Pacific.” “This gathering’s significance is magnified when one considers that, in a world where many economies are reeling from uncertainty, Asia-Pacific economies have, for the large part, sustained a relatively...
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