...012-IBE-CaseStudies.docx Academic Year 2011-2012 International Business Environment Jean-Guillaume DITTER, PhD Groupe ESC Dijon Bourgogne – Burgundy School of Business SUPPORT DOCUMENT I - CASE STUDIES The texts making-up this document review and emphasize significant issues covered during the sessions. The questions asked at the beginning of each set of texts are meant to help students identify the issues that they should pay attention to. Students will work in teams on one single case study (see class outline for number of students per team). Each team will produce a presentation slideshow of its case study (7-10 slides per presentation, depending on the size of the case). Slideshows will be presented orally during sessions, according to the class outline (1520mn per presentation). Each team member will actively participate in his/her team presentation. Page 1 of 35 012-IBE-CaseStudies.docx CONTENTS Case Study 1. Text 1. Text 2. Text 3. Case Study 2. Text 4. Case Study 3. Text 5. Text 6. Text 7. Case Study 4. Text 8. Text 9. Text 10. Text 11. Text 12. Text 13. Case Study 5. Text 14. Text 15. Text 16. Text 17. Text 18. Text 19. Case Study 6. Text 20. Text 21. Case Study 7. Text 22. Text 23. Text 24. Text 25. Chinese Mercantilism .................................................................................................... 3 Chinese New Year ............................................................................................................
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...What are the trends in growth, inflation, unemployment, and debt? Over the last ten years Japan had a tremendous growth. It is no surprise for a country like Japan to have an increase in GDP among the last ten years; it had a GDP of $4.3 trillion in 2004 and kept increasing till it reached $5.96 trillion in the end of 2013 (Trading Economics, 2013). This significant increase in in the GDP is due to the increase in the net exports, since nowadays Japan is known as the world’s second largest developed economy. Japan exports a lot of automobiles because it is one of the leading countries in the production of automobiles that are spread all over the world. Moreover, Japan is the largest creditor nation while running an annual trade surplus. The GDP per capita increased from $29369.49 in 2004 to $31425.49 in 2013 (Trading Economics, 2013) meaning that the economy is vigorous since people are earning more so they have more disposable income to spend which vitalities the economy and the services thus leading the economy to thrive. All these conditions led the growth rare to increase from 0.1% in 2004 to 0.3% in 2013 (Trading Economics), however it is still considered low since it only increase 0.2%. In general we can come to a conclusion that the Japanese economy is healthy and is experiencing a positive growth. Since we already know that the economy in Japan is booming it would be rational to say that there are new opportunities for new positions in the market, the demand for workers...
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...Purchasing Power Parity in 1982, an increasing number of economists started using new econometric methods, such as cointegration and non-stationary panel methods, to test PPP. Rogoff (1996) had introduced the so-called PPP puzzle in his paper, which concerns the question that ‘how is it possible to reconcile the extremely high short-term volatility of real exchange rates with the glacial rate (15 percent per year) at which deviations from PPP seem to die out?’ (Rogoff, 1996, p. 664). To solve the PPP puzzle, numerous explanations arose including the core of this essay, Pricing to Market. The objective of this essay is threefold: (i) to explore and review the concept of Pricing to Market (PTM), (ii) to illustrate the implications of PTM for Purchasing Power Parity, and (iii) to analyse the empirical evidence of PTM. Initially, I will start with an overview of the concept of PTM in the first part of this essay, then go on to interpret the implications of PTM for the PPP hypothesis in the following paragraph and cover the empirical evidence concerning Pricing to Market in the last section. Main body Pricing to Market as a concept was first introduced by Krugman in 1987 to characterise the phenomenon of imported goods’ prices staying the same or even increasing when the domestic currency appreciates. In other words, it implies that producers are capable of price discriminating among different international markets (Knetter, 1989). The fact that price discrimination for certain types...
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... Export from Switzerland Export to Japan Group member: Cho Ki YIU Duy Manh Quyen NGUYEN PRO FORMA INVOICE Lindt&Sprungli AG Purchasing Department Seestrasse 204 8820 Kilchberg Sold to: Nissil Foods Holding Co., Ltd Mr. Aiwa, Purchasing Director 28-1, Shinjuku Rokuchome, Shinjuku, Tokyo, Japan 30/11/2013 |Description |Customs Code |Quantity |Unit Price |Amount | |100 dark chocolate bars, 100 grams, |180613 |50 cartons |1200 EUR |60 000 EUR | |solid in one carton | | | | | |Total amount FCA Kilchberg, ICC 2010 |60 000 EUR | Financial conditions: - Term of payment: Letter of credit - Modality of payment: L/C Delivery: - Around 10/01/2014 container 87608 50 cartons ...
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...Vertical Specialization and the Changing Nature of World Trade David Hummels, Dana Rapoport, and Kei-Mu Yi T he world’s economies have become increasingly integrated and increasingly global. Among the most important and often cited features of the rise in globalization is the enormous growth in the export and import shares of GDP since World War II. In the United States, international trade— that is, exports plus imports—accounted for 23.9 percent of GDP in 1996, up from 9.2 percent in 1962.1 Worldwide, the merchandise export share of production has more than doubled over the last forty-five years, while the manufactured export share of production has almost quadrupled (Chart 1). Most countries—emerging nations as well as highly developed economies—have experienced increases in their export share of GDP (Chart 2). Clearly, a greater number of countries are trading more today than in the past. David Hummels is an assistant professor of economics at the University of Chicago’s Graduate School of Business; Dana Rapoport is an assistant economist and Kei-Mu Yi an economist at the Federal Reserve Bank of New York. Another significant feature of increased globalization is the internationalization of production. Rather than concentrate production in a single country, the modern multinational firm uses production plants—operated either as subsidiaries or through arm’s-length relationships—in several countries. By doing so, firms can exploit powerful locational advantages...
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...Econ 231, Chapter 15: GDP and National Income 1. GDP is defined as a. the market value of all goods and services produced within a country in a given period of time. b. the market value of all goods and services produced by the citizens of a country, regardless of where they are living in a given period of time. c. the market value of all final goods and services produced within a country in a given period of time. d. the market value of all final goods and services produced by the citizens of a country, regardless of where they are living, in a given period of time. 2. Which of the following transactions adds to U.S. GDP for 2006? a. In 2006, Ashley sells a car that she bought in 2002 to William for $5,000. b. An American management consultant works in Mexico during the summer of 2006 and earns the equivalent of $30,000 during that time. c. When John and Jennifer were both single, they lived in separate apartments and each paid $750 in rent. John and Jennifer got married in 2006 and they bought a house that, according to reliable estimates, could be rented for $1,600 per month. d. None of the above transactions adds to GDP for 2006. 3. Goods that go into inventory and are not sold during the current period are a. counted as intermediate goods and so are not included in current period GDP. b. counted in current GDP only if the firm that produced them sells them to another firm. c. included in current period GDP as inventory investment...
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...Allen J. Morrison ifteen years ago, Japanese companies accounted for 141 of the companies and 35.2% of the revenues of Fortune’s then brand-new Global 500 list. By 2000 their share of revenues had fallen to 20.8%, and by last year it had shrunk to 11.2%, with only 68 Japanese companies making the list. During the same period, U.S. firms’ portion of Global 500 revenues, which was 28.4% in 1995, grew slightly, to 30%. Firms from the European Union and Switzerland, meanwhile, increased their portion from 31% to 36%. Much of Japan’s loss has been a gain for firms from emerging markets. Since 1995 companies from the BRIC nations (Brazil, Russia, India, and China) have seen their combined share of Global 500 revenues leap from 0.9% to 10.4%. But will those countries lose their edge in the years ahead, as Japan did? Or will they find ways to remain globally competitive and protect their share—as the U.S. and Europe have done? To answer those questions, we first need to understand why Japan was unable to continue the meteoric rise it saw in the 1970s and 1980s, because the new generation of emerging-country multinationals bears a disturbing resemblance to corporate Japan in the 1990s. Over the past quarter century, we have tracked the rise and fall of Japanese business, and our research reveals that the very factors that enabled Japan’s early success led to its later failure. What gets you to the top is not what keeps you there. The problem for Japanese companies is that they’ve been...
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...on YAMAHA INDIA MOTORS Submitted to: Dr. H. Gayathri Submitted By: Group 12 Aditi Singh – 10004 Krishna Chandra – 10020 Rajiv N. – 10032 Srikiran C. Rai – 10048 1. INTRODUCTION BRIEF HISTORY OF THE INDIAN TWO-WHEELER INDUSTRY: In the 50s the two wheeler segment was largely dominated by Automobile Products of India (API) and Enfield. Later on towards the end of the 50s Bajaj Autos began importing Vespa scooters from the Italian company Piaggio. In the following decades, the automobile industry in India was mainly dominated by scooters with API and later Bajaj dominating the market. There were very few products and choices available as far as motorcycle is concerned and Enfield bullet and Rajdoot dominated the market. The 80s saw the entry of Japanese companies in the Indian market with the opening up of the market to foreign companies. Hero Honda and TVS Suzuki are companies formed in this era of market reform. The market was still predominantly scooter dominated and Bajaj and LML were the leading brands producing two-wheelers at that time. Scooter was viewed as a more family and utility friendly vehicle than motorcycle and hence was preferred. The Japanese companies not only collaborated with Indian companies to produce the already existing products but also brought in new technology as a result of which the ever conquering 100cc bikes which were extremely fuel efficient with 4 stroke engines were launched in India...
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...SCOTTISH ENTERPRISE BORDERS EVALUATION OF CASHMERE MADE IN SCOTLAND PROMOTION 2001-2003 1. INTRODUCTION 1.1 Background In recent years UK manufacturing has suffered the effects of increased global competition from low cost manufacturers in the developing economies. The lower cost of materials, particularly labour, has forced UK manufacturers to maximise efficiency and production techniques to enable them to compete. Partly as a consequence, many manufacturing companies have taken the strategic decision to move to higher quality or specification products, which command a price premium in the market, with a hopeful corresponding impact on margins. The UK Textiles Industry is no exception to this trend and many companies that were unable to diversify, or had niche markets that proved unsustainable, have been taken over or ceased trading with the loss of many job opportunities. The Textiles Industry is important to the Scottish economy. It employs 22,000 people and with an output of £1.2 billion contributes £500 million to the country’s manufactured exports. The Scottish Borders is heavily dependent on this industry and in particular knitwear, which employs around 4,000 people. Recognising the sensitivity of the knitting and weaving sectors to the economy in the Scottish Borders, and following the successful action against the punitive import duties proposed by the USA government arising...
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...2011. CEPA would provide a framework for enhanced cooperation between the two countries and is aimed to facilitate trade in goods and services and increase investment opportunities, besides protecting intellectual property rights. The Agreement is likely to be implemented from 1 April 2011. The highlights of CEPA have been provided below. CEPA The CEPA aims to reduce or eliminate tariffs over next 10 years on over 90 per cent of goods traded between the two countries. The Agreement inter alia provides ‘schedule for India’, a list detailing product wise plan for reduction/ elimination of duties for imports into India and a similar ‘schedule for Japan’. The quantum of duty reduction under CEPA will vary from product to product. Therefore, some products may see a complete elimination of duties on 1 April 2011 itself (or any other day on which the Agreement comes into force) while others may see a gradual reduction over years. Sensitive sectors for India and Japan are fully protected and will not see any tariff change. An illustrative list of goods for import into India and the time period over which basic customs duty would be eliminated is given below: |Description of goods |Period in which tariff to be reduced | |Most of the textile products including yarn and fabric |Immediate | |Computer printers, PCs and other automatic data processing machines...
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...Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain b. Economical impact of the Japanese Disaster 2- Impact on global production in important industries a. Automobile Industry i. Toyota b. Electronics Industry 3- Collateral impacts of the disaster a. Increase in electricity costs b. Explanation of why the yen is so strong. i. Supply Chain ii. Cheap Investment iii. GDP Impact iv. Export Economy v. Currency vi. Monetary Policy 4- Innovation in supply Chain and the Disaster in Japan a. The Top 10 Supply Chain Innovations from 1880-1990 (1) b. Supply Chain Innovation c. Supply Chain Innovation - Environment d. Long-Term Disarray after Japan Disaster Conclusions Bibliography Butterfly Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain Japan is an island nation located at the East of Asia, in the Pacific Ocean. Its currency of legal course is the YEN (¥). Japan has the tenth largest populations in the world with over 127million people and a GDP of USD$ 5,068,996 million by 2009. The main industries of Japan’s economy are manufacturing and technology, mainly in automobiles, transportation equipment...
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...Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain b. Economical impact of the Japanese Disaster 2- Impact on global production in important industries a. Automobile Industry i. Toyota b. Electronics Industry 3- Collateral impacts of the disaster a. Increase in electricity costs b. Explanation of why the yen is so strong. i. Supply Chain ii. Cheap Investment iii. GDP Impact iv. Export Economy v. Currency vi. Monetary Policy 4- Innovation in supply Chain and the Disaster in Japan a. The Top 10 Supply Chain Innovations from 1880-1990 (1) b. Supply Chain Innovation c. Supply Chain Innovation - Environment d. Long-Term Disarray after Japan Disaster Conclusions Bibliography Butterfly Effect of Japan´s Disaster on Global Production. 1- Japan Background a. The relevance of Japan in global production and supply chain Japan is an island nation located at the East of Asia, in the Pacific Ocean. Its currency of legal course is the YEN (¥). Japan has the tenth largest populations in the world with over 127million people and a GDP of USD$ 5,068,996 million by 2009. The main industries of Japan’s economy are manufacturing and technology, mainly in automobiles, transportation equipment...
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...The pattern of internationalization followed by the major carmakers can so far be split into three stages. The first stage is export. At this stage the goal is to create a car which fits into a world-wide car cartegory. After the expansion of exports comes the second stage. This is the setting up of transplant in major market regions. The automotive companies in the world is now confronting a third stage in the process of internationalization, namely globalization. It is mean complete localization of transplant one hand and the establishment of global business network another hand. Exports are the engine of the contemporary Korean motor vehicle industry's success. Korea emerged in the 1995 as a significant world producer in which 5 leading countries produced 2.6 million units in 1995. They plan to produce a total of 3.2 million cars this year, including those to be assembled at their overseas plants. In the last year the Korean automakers exported about 1 million units. In the 1980s, Korean automakers began to explore strategies to increase access to the overseas market. The strategy of internationalization in the first stage was to develop joint ventures with US automotive producers such as GM and Ford that would allow them to the development of world car concept. The growth in production and exports is required closely linked to both the advanced product design and process technology that Korean carmakers has been able to technology import from advanced carmakers. The original...
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...mirrored one another. Both emerged from a war with its economy devastated and its infrastructure in ruins. Both countries changed with the economic climate of the time and took advantage of foreign investment in order to rebuild. Finally, both countries used their strengths to develop their economies to the point that they are world leaders in their field. Finally, both counties enjoy close political and economic relations with the United States, with each country being among our Top 10 largest trading partners. We have been a good friend to both, which has helped to stabilize relations in the regions between the two. Brief History (Since World War 2) The Korean Peninsula was occupied by Japanese forces for 35 years, from 1910 until the end of WW2 in 1945. Due to existing agreements, Japanese forces in Northern Korea surrendered to the Soviets and those in South Korea to the United States. The Korean War (1950-1953) was an attempt by communist North Korea (with China’s covert and the overt backing) to subvert the whole of Korea to Maoist rule. Although never officially ended, the war concluded in 1953 with an agreement between China and the United Nations to divide North and South Korea into 2 countries. In the 1950s South Korea had an underdeveloped, agrarian economy that depended heavily on foreign aid. The...
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...Introduction South Korea has experienced rapid economic growth over last two decades. South Korea, officially Republic of Korea, is in East Asia and located on the southern half of the Korean peninsula which also contains North Korea. It consists of the mainland and about 3,200 islands, largely uninhabited and tiny, which lie off the western and southern coasts of South Korea. The country is surrounded by North Korea, to the north, and China which is separated by the Yellow Sea, to the west, Japan which separated by the East Sea, to the east. The capital city is the Seoul Special City which is located in the north-west of South Korea and in the mid-west of the Korean Peninsula. South Korea including all islands has a total area of 100,210km2 which ranked 109th in the world. Nearly three-fourths of the total land area of South Korea consists of mountains and uplands. It has a population of almost 50 million and the density of population is 491 people per square kilo meter which placed in 23rd in the world. The estimated population of the capital city, Seoul, is over 10 million which is almost one fifth of the Korean population while it has a total area of over 600㎢ which occupies 0.6% of South Korea’s land area. South Korea has a humid continental climate and a humid subtropical climate. In general, summers which include a rainy season are hot and humid but winters are often extremely cold and much drier than summers. The spoken language is Korean and the official script is...
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