...1.0 Introduction Puma is one of the famous sports brand, the brand’s history can backward to World War Ι, Herzogenaurach Germany, 1948 by Rudolf Dassler. The major products covered almost all sport items, such as sport shoes, wears, and other sports equipment. The brand PUMA is the leader of football shoes. Puma is Olympic sponsors and partner of World formula championship tournament. Today the group has more than 9,500 employees and distributes its products more than 120 countries. Group holds three major sport brands, which are PUMA, COBRA, and Tretorn in sport industry market.(Puma, 2013). Business process outsourcing (BPO) is the key issue of today’s multinational corporation (MNC), which is considered as high chance to find out more opportunities and reduce cost. The main advantage of Business process outsourcing is that, which makes firms more flexibility, in one hand, which can help MNCs to reduce the fixed cost, as transferring into variable cost. In another hand, BPO is considered to be a good way to focus on firm’s core competencies. In addition, this process also may increase the speed of business processes. Based on these factors, BPO may help MNCs grow faster without the huge capital requested. At the same time, this process also brings limitations for MNCs, such as the higher risk level, which could be caused by both privately or structure of firm. Risks and treats of outsourcing must therefore be managed, to achieve any benefits. 2.0 Investment Market...
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..."Governmental attitudes towards Foreign Direct Investment Traditionally, FDI has been driven in substantial part by the need to invest behind tariff barriers. High trade barriers in a country create an incentive for investment to serve consumers of that country that does not depend on efficiency of the workforce, availability of world-class material suppliers, access to other markets, or the maintenance of an effective system of commercial law. When tariff and non-tariff barriers to trade are removed, investment decisions increasingly are made on the basis of the ability of the market to provide an environment that is conducive to the establishment and maintenance of a world-class manufacturing operation to serve the regional market and often to produce for worldwide export. Workforce availability, a stable economic system, and an effective legal system all assume greater importance in making investment decisions. Equally important is logistics - the ability to maintain a reliable, low-cost flow of raw materials and components into a manufacturing facility, and an effective system to distribute finished products flowing out of the facility. One of the myths that appear to be indestructible, despite growing evidence to the contrary is that of the generally positive and desirable nature of foreign direct investment (FDI). It is certainly seen as being preferable to other forms of foreign capital inflow, such as commercial borrowing and portfolio investment. Furthermore, it is considered...
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...- Dimensions of market/country attractiveness ‘Fine-grained’ screening As the BERI index focuses only on the political risk of entering new markets a broader approach that includes the competences of the firm is often needed. For this purpose, a powerful aid to the identification of the ‘best opportunity’ target countries is the application of the market attractiveness/competitive strength matrix (Figure 7.4). This market portfolio model replaces the two single dimensions in the BCG growth–share matrix with two composite dimensions applied to global marketing issues. Measures on these two dimensions are built up from a large number of possible variables, as listed in Table 7.2. In the following, one of the important dimensions will be described and commented upon. - Market expansion strategies, incremental versus simultaneous entry A firm may decide to enter international markets on an incremental or experimental basis, entering first a single key market in order to build up experience in international operations, and then subsequently entering other markets one after the other. Alternatively, a firm may decide to enter a number of markets simultaneously in order to leverage its core competence and resources rapidly across a broader market base. Entry on an incremental basis, especially into small markets, may be preferred where a firm lacks experience in foreign markets and wishes to edge gradually into inter- national operations if a firm is small and has limited resources...
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...SHADOWS Prepared for Mr. Zia Imran Prepared by Samiullah khan 06l0365 Sarah Shah 06l0380 Jane 6, 2008 Table of Contents EXECUTIVE SUMMARY 4 THE OPPORTUNITY 5 THE COMPANY, ITS SERVICES AND STRATEGY 6 Company 6 Mission Statement 6 Vision 6 SWOT Analysis 7 Strengths: 7 Weaknesses: 9 Opportunities: 10 Threats: 11 MANAGEMENT 11 MARKETING STRATEGY 14 Product 15 Estimated Production Material: 19 FAB Analysis of Product 20 Pricing 21 Promotion 22 Website 24 Advertisement 24 Trade Shows 24 Australia( Trade Shows) 25 Kuwait( Trade Shows) 26 Placement 27 MARKET ENTRY BARRIERS 28 Tariff Barriers 29 Non Tariff Barriers 29 EXPORTING PROCEDURE 29 MODE OF EXPORTING 31 Advantages of Exporting 32 Disadvantages of Exporting 34 MODES OF PAYMENTS 34 Letters of credit 35 FINANCIALS 36 REFERENCES 42 APPENDIX 1 43 APPENDIX 2 47 APPENDIX 3 50 EXECUTIVE SUMMARY The company SHADOWS is aimed to manufacture and export wooden perfumed Blinds which would not only protect the consumers from the sunlight but also satisfy their aesthetic sense. There is much room for such unconventional products. The beauty lies in the making of the oriental product with the skilful hands, which certainly be having a high return and more demand. The geographical location of the host countries will make our product a necessity rather than luxury. Kuwait and Australia are the markets where...
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...globalization will eventually bring benefit to a country, whether that developing country is a poor or rich country. One of the benefits from globalization is that people believes it will improve the standard of living in a country. Furthermore, people also believes that globalization will be able to unite the world together. The advocates believe that economic and financial market integration will help create a greater economic stability. In addition, globalization could also help the developing country’s medical field. It has the potential to help produce and provide better medicine in a more effective and efficient manner to the people that needed it. Other than that, it also believes that due to globalization, trade barrier will be reduce in the existing market. When trade barriers been skim down, it will lead to increase in trade between the developing countries and other countries. These international trades will eventually lead to a greater growth that will bring benefit to the country. Last but not least, globalization are also expected to help in terms of economies of scale by lowering the transportation cost, communication cost and other cost by coming out with the solution of hiring foreign labors such as expatriates that will help the productivity to be more effective and efficient. 2. The Factors of Failed in Obtaining Started Benefits As good as globalization sounds, there are times when some countries fail to benefit from globalization. It was due to the asymmetric way...
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...25 MW capacity wind mills by Sun-n-Sand Hotels Pvt. Ltd at Soda Mada Rajasthan 2. 3.75 MW Small Scale Grid Connected “Demonstration Wind Farm Project” at Chalkewadi, District Satara, State Mahararashtra 3. 10.6 MW wind farm at Village Badabagh, District Jaisalmer, Rajasthan. All the 3 projects demonstrated investment barrier in the additionality. The 6.25 MW and 10.6 MW project showed that the cost of power generation through wind is higher compared to that of coal and fuel oil, whereas. The 3.75 MW project has shown how due to non payment by Maharashtra state electricity board the project participants were not able to repay the loan (50 % of the total project cost). This has also been shown as a regulatory risk by the project proponent. The projects have demonstrated technology barrier faced due to poor penetration of wind energy and uncertainty in power generation through wind. The 6.25 MW project also faced technological barrier by using higher capacity of WTGs (1250 Kw) and other barriers like investment in power evacuation, unskilled manpower and lack of experience due to new technology. The 10.6 MW project in Rajasthan faced regulatory barriers because the policies of the Rajasthan electricity board were uncertain and changed several times and hence not investor friendly. There were request for reviews for the 6.25 MW and 10.6 MW project whereas, the 3.5 MW was straightaway registered. None of the request for review were related to additionality. For the 6.25 MW...
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...After attaining freedom in 1949 china followed the principles of independence and self reliance and then later started economic and trade exchanges with foreign countries. Initially foreign trade development was relatively slow because of international politics. Before 1978 china’s trade was conducted under system of state trading where approximately a dozen foreign trade corporations monopolised all foreign trade. under this central plan regime imports were not encouraged much and also exports were allowed only to pay for the imports. its share of world trade has risen three times and its expected that will get tripled by 2020. But since the last 20 years china has witnessed a drastic change in its trade policies and patterns and china has expanded itself tremendously. many foreign trade corporations and some retain rights on some of the products. Licenses and quotas in agriculture and food products, machinery and electronics. China has recently become a trading nation and its tremendous potential has attracted developed and newly emerging economies which became evident when china joined WTO in 2000. China’s trade strategy has changed over the years, from primary to manufacturing in 1980’s and 90’s was the decade of mechanical and electronic products. This is the century of high tech IT products rapidly grabbing the market and which are highly in demand , also along with state enterprise private enterprise also engaging in foreign trade. From 80’s to 21st century china’s...
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...Tariff and Nontariff Barriers to Trade Scott Jaeger MGT/448 November 16,2015 Lara Dickerson Tariff and Nontariff Barriers to Trade Since the beginning of trade between countries or regions, there have been barriers that have deterred, or prevented the trade of goods between countries or regions. These barriers are put into two different categories. First, there are tariff barriers, these include taxes and quotas put on imports by the country receiving the goods. The other barriers to trade are the nontariff barriers. These barriers include such things as bans on imports, import licenses, and “buy national” policies, along with a slew of other deterrents to trade. In this paper, the differences between these two barriers will be discussed, along with how these barriers are used in global finance, and their importance in managing risk. Tariffs and Quota’s Tariffs To put it the simplest terms possible, tariffs are taxes imposed by a country in order to raise the price of imported goods and services. There are a couple of different reasons that a country may use tariffs, depending on the countries that they are trading with, and the goods or services involved in the trade, but essentially, “The idea is to increase demand for domestic products while reducing the volume of imports.” (Sanders, 2015). Countries may want to promote the domestic products or services in the same trade, or they may also simply want to make money. While tariffs can certainly benefit the...
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...Chapter 2: International Trade Policy and Trade Institutions 1 Global Marketing: Foreign Entry, Market Development & Strategy Implementation First Canadian Edition (Czinkota/Ronkainen/Farrell/McTavish) Copyright © 2009 by Nelson Education Limited Evolution of International Trade 2 Mercantilism (1500 – 1750) Import raw materials from ‘colonies’ at low cost Positive balance of trade Exports subsidized Imports taxed Create positive balance of trade Copyright © 2009 by Nelson Education Limited Evolution of International Trade 3 Theory of Absolute Advantage Country specializes only in products they can produce efficiently Natural resources Fewest units of labour to produce Import all other products Encourages trading between countries Theory of Comparative Advantage Does not require Absolute Advantage to trade Trade to maximize labour effectiveness for the country Copyright © 2009 by Nelson Education Limited Evolution of International Trade 4 Heckscher-Ohlin Model Extends comparative advantage Factors that vary by country Labour Capital Trading based on price differences between countries Product Cycle Theory Stage 1 – innovative product, home country develops and sells domestically Stage 2 – begin export to other similar countries Stage 3 – manufacture in developing countries, sell everywhere Copyright © 2009 by Nelson Education Limited Evolution of International...
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...CHAPTER 6 BUSINESS-GOVERNMENT TRADE RELATIONS LEARNING OBJECTIVES: 1. Describe the political, economic, and cultural motives behind governmental intervention in trade. 2. List and explain the methods governments use to promote international trade. 3. List and explain the methods governments use to restrict international trade. 4. Discuss the importance of the World Trade Organization in promoting free trade. CHAPTER OUTLINE: Introduction Why Do Governments Intervene in Trade? Political Motives Protect Jobs Preserve National Security National Security and Imports National Security and Exports Respond To “Unfair” Trade Gain Influence Economic Motives Protect Infant Industries Pursue Strategic Trade Policy Benefits of Strategic Trade Policy Drawbacks of Strategic Trade Policy Cultural Motives Cultural Influence of the United States Methods of Promoting Trade Subsidies Subsidies in Media and Entertainment Drawbacks of Subsidies Export Financing Foreign Trade Zones Special Government Agencies Methods of Restricting Trade Tariffs Protect Domestic Producers Generate Revenue Quotas Reason for Import Quotas Reasons for Export Quotas Voluntary Export Restraints Tariff-Quotas Embargoes Local Content Requirements Administrative Delays Currency Controls Global Trading System General Agreement on Tariffs and Trade (GATT) Uruguay Round of Negotiations Agreement on Services Agreement...
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...UNIT 40 INVESTIGATING INTERNATIONAL BUSINESS BTEC NATIONAL INTRODUCTION. The international nature of business is evident to anyone who, for example, buys an iPod from Apple or insurance from Aviva. Many brand names are recognised throughout the world as organisations increase demand for their products by expanding from a national to an international market. Initially, the nature of the international business environment will be considered by looking at the size and importance of international markets. Governments encourage businesses to trade internationally but protectionism is also common. International business is regulated not just by national governments but also by transnational trading arrangements promoted by trading blocs such as the European Union and global agencies such as the World Trade Organization (WTO). Both large and small businesses trade internationally but doing business internationally is often more complex than doing business in the home market. Consideration will be given to the issues facing a domestic (UK) business when it expands its operations into the international sphere. However, some insights can be made by considering issues faced by overseas businesses as they have expanded their operations by moving into the UK market. Tesco has had very limited success in extending operations into France and Carrefour has had similar problems in establishing operations in the UK. However, they both have had more success in Malaysia and...
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...Executive Summary Traditionally, Australia-China trade & economy was simple. Australia met the demand for raw material for China’s manufacturing & China exporting back to Australia its finished manufactured goods. Thus China-Australia became each other’s largest trading partners. Now that China’s economy is affected, less spending on infrastructure the demand has shifted from raw materials & commodities to other specialized manufactured equipment, services like health, education, financial, engineering, agriculture etc. for which Australia has to change gears to gain distinctive advantage to its other competitors. However in Chinese economy there still exists substantial market for Australian commodities, such as wool, wines, wheat, minerals & iron ore, as Australia has advantage of nearness by sea for the shipping lines. The Free Trade Agreement is a win-win situation as Australia can easily meet the changed needs of Chinese for sophisticated medical goods & services in Health, Social Security, Human Resources, Banking, Education, Legal, Agriculture, Winery & Dairy. China’s economic woes & slowdown in addition to general economic slump has impacted Australia hard, specially the mining cum trading houses at present. This impact is not limited to just Australia but whole of Asia-Pacific, lain America & Canada. Thus to conclude, there are some positives about the Australian economy as GDP growth is up from the last year & China needs Australia, as it shall always...
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...earn gold & silver by exploiting goods. Conversely, importing goods from other countries would result in a outflow of gold & silver to those countries.The main tenet of mercantilism was that it was in a country’s best interest to maintain a trade surplus,to export more than it imported.By doing so,a country would accumulate gold and silver and, consequently ,increase its national wealth, prestige & power. Government policies: Consistent with this belief, the mercantilism doctrine advocated government intervention to acieve a surplus in the balance of trade.The mercatelists saw no virtue in a large volume of trade.Rather they recommended policies to maximize exports and minimize imports.To achieve this. import were limited by tarrif and quotas.while exports were subsidized. The concept of Balance of Trade: Some terminology of the mercantilist era has endured. A favorable balance of trade, For example, a country is exporting more than it is importing.An unfavorable balance of Trade indicates the opposite, which is known as deficit.Many of these terms are misnomers. For Example ,The word“ Fovorable” implies“ benefit” The word unfavorable suggests ”Disadvantages”It is not necessarily beneficial to...
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...Chapter 1 The Globalization of Starbucks -company focused on selling a “thirdplace” experience, rather than just coffee -first target outside US was Japan and the company established a joint venture with a local retailer -Starbucks format was then licensed to the venture which then took over responsibility for growing the Starbucks presence in Japan -Starbucks transferred employees to the Japanese operation -all employees went to training classes -stores had to adhere to design parameters established in US -took its success here and went to other foreign markets -purchases mainly Fair Trade Certified coffee to promote environmental responsibility -Starbucks has shown that glo Globalization (shift towards a more integrated and interdependent world economy): +: Expand revenue by selling around the world and reduce costs by producing in nations where lower input costs -: increases competition and drives price down Globalization of markets refers to the merging of historically distinct and separate national markets into one huge global marketplace Most global markets are markets for industrial goods and materials that serve a universal need the world over such as market for commodities (aluminum, oil, and wheat), industrial products (commercial jet aircraft), computer software, and financial asses Firms follow eachother around the world so greater uniformity replaces diversity Globalization of production: sourcing of goods and services from locations around...
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...MacDonald’s Corporation History: McDonald’s Corporation is an American based world’s leading company in the fast food industry. Headquartered in the United States, the company began in 1940 as a barbecue restaurant operated by Richard and Maurice. McDonald in 1948 they reorganized their business as a hamburger stand using production line principles. Ray Kroc joined the company in 1955 as a franchise. A McDonald's restaurant is operated by either a franchisee, an affiliate or the corporation itself. McDonald's Corporation revenues come from the rent, royalties, and fees paid by the franchisees, as well as sales in company-operated restaurants. In 2012, McDonald's Corporation had annual revenues of $27.5 billion, and profits of $5.5 billion. Products: Macdonald’s primarily sells hamburgers, cheeseburgers, chicken burgers, French fries, breakfast items, soft drinks, milkshakes and deserts including ice-creams. Currently restaurant also expanded its menu to include salads, fish, wraps, smoothies and fruits in order to change the taste of the consumers. Company also serve soup in the Asian countries. The menu of the company differs according to the serving countries like prawn burger in Singapore. In Germany and western European countries MacDonald’s serve beer also. Operating countries: Macdonald’s corporation is one of the largest fast food selling company. It have 31,800 flagship restaurants serving nearly 68 million people in each day among the 119 countries worldwide...
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