...Global vs. International Business We are trying to expand our bicycle business to three new countries. Right now we are domestic in the United States, but we hope that will change in the vast future. We are first faced with the question of whether we are global or international. Obviously the goal for the bicycle company is to be global since we would expand our company in having a physical site overseas. In order to have a physical presence in other countries we may have to buy out a local, favored brand name. So we have to keep that in mind for the future of our business. Base of the Pyramid In order to sell a more expensive product, such as a bicycle, we need to make sure we aren't selling to a civilization that's on the base of the pyramid (earning $2000 or less per year). We would like to sell in an area where market participants earn in the second to top tier ranges in the pyramid. According to Trade Economics (2015), the per capita GDP's for our countries sit at: Japan- $37,595.18, Costa Rica- $5,962.38, and Pakistan- $818.87. Out of the three, the best country to go sell to is Japan if we are solely basing this on affordability. Costa Rica is in the second tier as preferred, but cutting it close to the base of the pyramid. Pakistan may not necessarily be able to afford our product as they sit at the base. Political Systems Japan is a constitutional monarchy which allows one branch of command to limit and balance the power of the monarch. Costa Rica is a democracy...
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...1. International business environment Business mean to busy in an activity, which are related to money almost business have 50% chances of profit and losses.(Morrison, j. 2002)Business is operated in every part of the world. As the business grow. It is looking for new opportunities across the border. International business is the term use for the operation and objective of the organisation that have interest in other countries. For example Tesco, Ford, General Motor, McDonald, Disney, so many other companies. These companies have key interest to standardise their product for general acceptance. The international business becomes more complex. Tie between the different societies and organisations. (Meldrum, D.H) as businesses inter into new market it chances of 50% losses increases. Due to different in economic, political, cultural structure, policies, geography and currencies. These factor decreases profit ratio of international investment. There are no specific criteria to measure such in-stability. Every investor used their own method and measure. Uncertain condition of country make easy for international business to design their own stability criteria. (Considering risk in international business) Business has no idea about the local risk. It's difficult to operate and manage in such condition where the Culture, Social, Economic, Political, and legal structure are not stable. In such cause the international business need to take all the measurement either it`s Commercial...
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...United States and the laws in other countries. One way to resolve legal issues would arbitration. Most countries agree with arbitration both binding and nonbinding, but nonbinding is more appealing to foreign countries. To do a contact in other countries it is best to have a country that has asserts in the United States so if there is a conflict the assets can be seized for payment. The courts in different countries are all run differently, some are run fairly, while others are run by the government of the country and others can be bribed to go with the decision of the highest bidder. Some other issues in resolving legal issues are change in legislation. If a contract was made with a law to protect the business, then the legislation changes the law the businesses may not still be protected. Another factor that would need to be considered is if the country the business wants to do business in is part of The United Nations Conventions or the World Trade Organization (WTO). If the country is not part of either of these organizations, then the legal issues would be harder to solve and to protect the business. Considerations for legal actions When considering legal actions, a business needs to look at the countries debt. If the debt is high there is a lower chance of the business winning any financial relief. As a business looking at other countries for a profit, the business will need to look and see if the common law applies or if the country has a code law, or Islamic law...
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...Business Ethics across Cultures Article Review XMGT/216 3/24/13 Jennifer Moore Globalization is a process which has taken place since the first traders and merchants began visiting other countries to bring food and goods back for sharing with their country. Countries take pride in sharing their culture and perspectives with any person whom enters their country. In today's economy we have the Internet, and the use of digital information to help focus on globalization. The updated technology helps create a well-planned business strategy for merging with organizations in different organizations. Creating a business transaction with organizations is difficult because most countries have different religious beliefs, they eat different foods, and speak a different language, and this becomes a difficult task to accommodate to what people of other countries are wanting from the business transaction. Organizations that choose to work with companies in other countries make take caution in how they communicate with one another. Through time organizations doing business with other countries have begun taking all steps necessary to make business transactions with international businesses. Many large corporations have begun doing successful transactions with other large corporations, and governments of various countries have begun working together to help better businesses throughout the world. If two international businesses choose to combine practices to better both parties involved...
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...Current World Population, 2011). From the 7 billion populations in the world, they certainly have a different background, such as country, language, race, culture, religion, customs etc. People as a human being cannot live alone without others people. They must communicate with each other. Language is the way of communication. Therefore, the purpose of this paper is to show to the people how to communicate with each other in different background especially in Global Business Communication. The expectation is the readers will learn how to using and understand the way people communicate, base on every aspect of their background. Business definition itself is a commercial activity engaged in as a means of livelihood or profit, or an entity which engages in such activities (WebFinance, 2012). In this paper, there will be the research and analyzing personal behavior and attitudes in a country and the relationship with others country. The countries that will be research and analyze are: Indonesia-Malaysia, Indonesia-China, Indonesia Singapore. Chapter II: Research The research divided into three groups: Indonesia-Malaysia, Indonesia-China, Indonesia-Singapore. Because those countries located in the same area that is Asia and also because those countries is Relationship-Focused Country, and there’s so much interesting about issue that happened in those countries, so that will be more challenge working on it. Indonesia-Malaysia Firstly this is more...
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...1. International business environment Book0)Business mean to busy in an activity, which are related to money almost business have 50% chances of profit and losses.(Morrison, j. 2002)Business is operated in every part of the world. As the business grow. It is looking for new opportunities across the border. International business is the term use for the operation and objective of the organisation that have interest in other countries. For example Tesco, Ford, General Motor, McDonald, Disney, so many other companies. These companies have key interest to standardise their product for general acceptance. The international business becomes more complex. Tie between the different societies and organisations. (Meldrum, D.H) as businesses inter into new market it chances of 50% losses increases. Due to different in economic, political, cultural structure, policies, geography and currencies. These factor decreases profit ratio of international investment. There are no specific criteria to measure such in-stability. Every investor used their own method and measure. Uncertain condition of country make easy for international business to design their own stability criteria. (Considering risk in international business) Business has no idea about the local risk. It's difficult to operate and manage in such condition where the Culture, Social, Economic, Political, and legal structure are not stable. In such cause the international business need to take all the measurement either it`s Commercial...
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...Business Communication 04/19/2015 How to prepare business in Saudi Arabia and China There are a lot of elements that make life different between countries around the world, which makes it harder for people to communicate and understand each other. Elements like geography, population, features, economic systems, verbal and nonverbal languages, religions, genders and customs are common important elements that make conflicts between people around the world. Understanding and respecting these elements will make a safe life. However, the most important reason that attracts people to know more about each other is business. Countries like Saudi Arabia and China are two of the most important business countries around the world. So, learning about how to prepare international businesses in China and Saudi Arabia are necessary. Geography Saudi Arabia is located in the Middle East, which has very important navigational routes that connect between the east and west. That location gives Saudi Arabia an advantage when it comes to international trading. Saudi Arabia shares borders with Iraq 814 km, Jordan 744 km, Kuwait 222 km, Oman 676 km, Qatar 60 km, UAE 457 km and Yemen 1,458 km. Those countries are unstable and that makes it hard to do business and investments in such a region. Although, Saudi Arabia is on the borders of those countries, the investment still is going well. On the other hand, China stretches about 5026 kilometers across the East Asian landmarks. It is bordered...
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...global business face when dealing with other countries. McDonald’s global business must know how to deal with different cultures, laws, ethical situations, etc. that can cause threat and consequences for the business. The following will compare ethical perceptions across cultures concerning different situations. Businesses operate differently in other countries and McDonald’s must adapt to the cultural to do business. For a global business to be successful is a challenge and possible risk. The influence of global economic interdependence and the effect of trade practices and agreements Legal realism in diverse countries led to key choices that entail marketing. These consist of the capability to make particular claims, the capability to sell products in particular ways, the variety of business practices that take place, and a variety of aspects. These aspects should be understood and well thought-out when creating marketing plans. Other aspects that influence marketing compose of social accountability and environmental factors. In various cultures these issues are vital and other cultures it is not a concern. McDonald’s should follow legal conditions in countries that influence social and environmental practices, and still meet the expectations of locals on these matters. If not McDonald’s could not gain the respect or trust locally and globally as a company. The importance of demographics and physical infrastructure When company’s like McDonald’s do business globally...
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...Identifying Global Business Opportunities 1. POTENTIAL MARKETS Discuss one or more of the global business opportunities from above in terms of: (a) a specific product or service, including customer benefits; and (b) a potential market-a country that would be appropriate for this business opportunity. 2. ABSOLUTE AND COMPARATIVE ADVANTAGES Analyze for the presence of an absolute or comparative advantage that might be related to a business opportunity in the country where the item will be produced or sold. Describe how this analysis might influence the success of your proposed business idea. (For example, the availability of natural resources can make a business opportunity cost efficient.) 3. BUSINESS OPPORTUNITY ANALYSIS Compare two or more proposed business opportunities based on factors such as foreign market potential, start-up costs, and foreign business risks. (For example, a proposal to construct new highways may be appropriate for a developing economy. However, the risks in this market are probably greater than in an industrialized nation.) 4. Research the international operations of a company doing business in several countries. Obtain information related to: (1) the products sold in various regions of the world; (2) current and planned business activities in specific regions of the world-Asia, Africa, Eastern Europe, Middle East, Latin America; (3) the company's strengths and weaknesses related to global business activities; (4) future actions...
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...University Faculty of Business and Informatics Business Studies Department Name: Brian Tugah Subject: BS 424: International Management Topic: Understanding the International Business Environment Lecturer: Tabian Ambang Why International Businesses are expanding their operations into less-developed countries? Today, the world is becoming smaller and smaller and it is more now like a one community. The force behind how the world is going today is because of technology and globalization. Rapid changes in technology have caused communication to be faster through internet, email and telecommunications. Through technology, faster means of transportation has also been developed. Globalization on the other hand is breaking cultural, political, social and country boundaries which presents opportunities for international businesses to go global, thus weaving national economies together (McFarlin &Sweeney, 2003). To continue, this essay is going to outline some factors on why international businesses are moving into and establishing and carrying out their business operations in less- developed countries. The reasons or factors given in this essay are from my own view, but I am supporting them with case studies and some other reasons from different authors. For a start, I believe that the reason why international businesses expand to other parts of the world outside of their domestic environment, especially to less developed countries is because of two things. It...
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...What is International Business? International business consists of transactions that are devised and carried out across national borders to satisfy the objectives of individuals, companies, and organizations. Learning Objectives To understand the history and impact of international business. To learn the definition of international business. To recognize the growth of global linkages today. To understand the U.S. position in world trade and the impact international business has on the United States. To appreciate the opportunities and challenges offered by international business. Introduction: International business is a term used to collectively describe all commercial transactions (private and governmental, sales, investments, logistics,and transportation) that take place between two or more nations. Usually, private companies undertake such transactions for profit; governments undertake them for profit and for political reasons. It refers to all those business activities which involves cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources include capital, skills, people etc. for international production of physical goods and services such as finance, banking, insurance, construction etc. A multinational enterprise (MNE) is a company that has a worldwide approach to markets and production or one with operations in more than a country. An MNE is often called...
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...products ideas, and other aspects of culture Why globalization is good: Cheaper production costs and more consumers to sell to; this allows more business opportunities and availability of commodity to the consumer. Untapped markets, different services, investment opportunities. Globalization brings about growth in a countries business for some products are brought about by investors hence increasing the countries’ economy. New business solutions, new ideas are introduced to solve problems; this allows one to get solutions from the exchange of business ideas from other world countries. Why globalization is bad: It uses up finite resources more quickly example coal, oil, nuclear and gas-dependency on business resources that won’t last. Investors tend to invest in less developed countries so as to maximize their profits-the market goes to the country that the possession of the commodity. With the dollar being the world’s reserve currency, globalization can lead to huge US balance of trade deficit and other imbalances. Globalization can move taxation from corporations. Globalization sets up a currency with each country trying to get an export advantage by dropping the value of its currency- thus the prices of the export reducing due to increase in competition within the business market. Encourages dependence on surroundingcountries’ for essential goods and services- this affects business in such that the goods can be obtained from other countries at a cheaper price...
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...referred to as a globality, characterized as a totally interconnected marketplace, unhampered by time zones or national boundaries. This term as based on business can be defined as; the process of extending to other parts of the world to develop an increasingly integrated global economy by using free trade, free flow of capital, and utilization of cheaper foreign labor markets. Globalization can be good for business because it can make operating in foreign markets more efficient. It is also beneficial because it raises a business’s profits in other parts of the world. (1, Premise) Businesses will be able to communicate more effectively and efficiently, if they are working in an open market. Globalization directly effects the administrative, economic, and geographical system that is in place with the nations in an effective way. Today’s business era is far more challenging and competitive, and although it is more difficult, globalization is still one of the most important components to the economic, administrative, and geographical sectors. It also provides effective business with the nations in an effective and proper manner. There have been a high number of changes that happen rapidly in the economics of all nations due to the rapidly growing globalization process. However, the implementation of globalization in some countries is creating issues that affect the nations directly or indirectly. (1, Conclusion) Although there are some issues, globalization allows businesses...
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...Questions 1. Outline why the culture of a country might influence the costs of doing business in that country. Illustrate your answer with examples. Answer: Since in a sense the entire chapter is about this question, there can be numerous reasons and examples of how culture influences the costs of doing business. Several are highlighted in the following sentences, but there could be numerous others. When there are simply different norms between how individuals from different countries interact, the costs of doing business rise as people grapple with unfamiliar ways of doing business. For example, while in the US we may get down to business first, and then get to know each other socially later, in many South American countries it is important develop a good social relationship before trying to discuss business issues. Different class structures and social mobility also raise the costs of doing business. If there are inhibitions against working with people from different classes, then the efficiency with which information can flow may be limited and the cost of running a business increased. A country's religion can also affect the costs of business, as religious values can affect attitudes towards work, entrepreneurship, honesty, fairness, and social responsibility. In Hindu societies where the pursuit of material well-being can be viewed as making spiritual well being less likely, worker productivity may be lower than in nations with other religious beliefs. Finally, a country's...
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...Moving Headquarters Overseas MBAA 604 – International Business Administration Embry – Riddle Aeronautical University April 10th, 2015 Instructor Dr. Thomas O’Meara Table of Contents Introduction 3 Case Discussion Questions 4 Summary 7 References 9 Introduction The following case study examines the decision by a multinational enterprise (MNE) to relocate its businessunit and/or corporate headquarter(HQ) overseas.The next section will answer the case discussion questions related to the benefits and drawbacks associated to moving unit and corporate HQ to another country. Case Discussion Questions 1. What are the drawbacks and benefits associated with moving business unit and corporate HQ to another country? According to the closing case, the benefits associated with moving business unit and corporate HQ(headquarters) to another country must significantly outweigh their drawbacks. At the business unit level, it is likely to achieve efficiency gains by moving business unit HQ closer to the center of gravity of the business. The greater the percentage of business activities (sales units, manufacturing units) overseas, the greater the likelihood of business unit headquarters moving overseas. It makes more effective interaction between the different unit activities and encourages development of firm’s core competence. According to Peng, there are five strategic advantages at the corporate level. First, the firm becomes a global player. Second, stakeholders...
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