...Research Tasks PG. 490 1. Due to the high costs associated with transporting products to Europe we have decided to open up a production plant overseas to serve their market it attempt to lower transportation costs. We are deciding whether we should build the plant in Italy, Portugal, or Spain based on the information provided within the Chartbook of International Labor Comparisons. Portugal has 55% of its population working within their labor force, Spain has 47% of their population employed within their labor force, and Italy has 44% of their population working within their labor force. After carefully analyzing the data given by the Chartbook of International Labor Comparisons, we have decided to open up a plant in Portugal due to the fact that over half of their population is employed within the labor force. They have been consistent over the years with their compensation plans and over 60% of them are paid in salaries and wages. This demonstrates a highly skilled labor force that can handle the complex constructs of our product. Portugal is the best fit for a new production facility. 2. The International Association of Outsourcing Professionals (IAOP) ranks the world’s best global outsourcing service providers. The IAOP has a list of criteria that each company must meet in order to make the list, and in what rank they will be positioned. PG. 464 1. Companies are able to expand their companies through the act of exporting. Global Edge provides sources...
Words: 661 - Pages: 3
...Specifically, what factors are considered in calculating the index? Find the most recent ranking, and identify the 10 countries with the lowest and highest Globalization Index. Do you notice any trends or similarities among the countries listed? Chapter 1, globalEdge Question 2 Week Two Transparency International's Corruption Perceptions Index (CPI) is a comparative assessment of a country's integrity performance. Provide a description of this index and its ranking. Using the most recent data, identify the five countries with the lowest and the five with the highest CPI scores according to this index. Do you see any trends between CPI scores and the level of economic and social development of a country? Chapter 7, globalEdge Question 2 Week Three A.T. Kearney's annual Global Services Location Index (GSLI) evaluates the attractiveness of countries as an offshore destination. Locate the most recent study, and prepare a short report addressing the following questions: How is the Global Services Location Index calculated? According to the ranking, which 10 countries are the best destinations for providing outsourcing activities? Why do you think these countries are attractive as potential location for offshore services? Chapter 2, globalEdge Question 1 Week Four You are working for a company that is planning to invest in a foreign country. Management has requested a report regarding the attractiveness of alternative countries based on the potential return of foreign direct investment...
Words: 381 - Pages: 2
...The Global Capital Market Learning objectives • Articulate the benefits of the global capital market. • Understand why the global capital market has grown so rapidly over the last quarter century. • Be familiar with the risks associated with the globalization of capital markets. • Appreciate the risks and benefits associated with the Eurocurrency market, the global bond market, and the global equity markets. • Understand how foreign exchange risk impacts upon the cost of capital. This chapter discusses the form and function of the global capital market. The market is attractive because its size lowers the cost of capital for borrowers, and allows investors to diversify their portfolios, thereby reducing their risk. Advances in information technology, and the deregulation of financial services and the relaxation of regulations on cross-border capital flows have contributed to the growth of the global capital market. The chapter then goes on to explore the Eurocurrency market, the global bond market, and the international equities market. The opening case describes how ICBC, China’s largest bank, raised $21 billion in the international equities market. The closing case examines how China Mobile raised capital in international markets through a stock offering and a bond issue. OUTLINE OF CHAPTER 11: THE GLOBAL CAPITAL MARKET Opening Case: Industrial and Commercial Bank of China Introduction ...
Words: 3183 - Pages: 13
...Executive Summary: Austria is a developed nation with stable development of GDP, however, Austria experiences economic downturns since 2009, but the economy recovers from 2010. Austria rely on high levels of other European country, especially German, therefore, investment has certain degree of risk. If the businesses expanded into Austria and major market is European countries, transportation takes advantage because Austria locates in the central of Europe. In general, political stability, wealth of overall country, high level of export and import, and advantageous energy supply provide favorable environment of foreign investment. Country Description In general, Austria has advantage of infrastructure. For example, 52 airports are distributed on the total area of 83,850 square kilometers. The length of railway network rank 29 out of 134 countries. (The World Factbook, 2010) In addition, for generating electricity, Austria rank 40 out of 217 countries (The World Factbook, 2010), therefore, it will be time efficient and low costing. Austria has been a member of EU since 1995 and this brings large opportunities to Austria's economy. The major industries are machinery, construction, food ,metals, chemicals, communications equipment and tourism. Political Situation: Austria is a federal republic nation and enjoys political stability since the signing of contracts in 1955. The president, who is chosen by general election for every 6 years, is the highest level of the state...
Words: 846 - Pages: 4
...4. The major sources of energy available in Burundi is for the most part only electricity with very little oil being imported and consumed as well (Global Edge). The United States meanwhile has electricity, natural gas, coal, and oil available (EIA). Electricity requires water sources for turbines or uses coal and other fossil fuels to be generated with the majority of it at least in the United States being produced using fossil fuels. Natural gas is available in a lot of places, is clean but has emissions, is costly to transport, and pipelines for the gas impact the ecosystem (Energy4Me). Oil is used in a variety of products including a lot of modes of transportation used; it is easy to transport and produce but has high emissions and is limited in supply (Energy4Me). Coal does not cost much and is abundant but emits greenhouse gases at a high level and the mining required to obtain it affects the environment (Energy4Me). 5. For Burundi our company would have to rely on using electricity for the most part as that is main source of power in the country. Some oil is imported from outside sources but there aren’t many alternatives due to the two major cities being the only places with electricity. Burundi does however have potential for various sources of alternative renewable energy (UNDP). These sources include hydroelectric energy, wind power, solar power, and biomass of which the country is looking for investors in order to bring electricity and energy to more...
Words: 366 - Pages: 2
...The Political Economy of International Trade Learning objectives • Describe the policy instruments used by governments to influence international trade flows. • Understand why governments sometimes intervene in international trade. • Articulate the arguments against strategic trade policy. • Describe the developments of the world trading system and the current trade issues. • Explain the implications for managers of developments in the world trading system. This chapter focuses on the political systems and tools of trade policy. The major objective of this chapter is to describe how political realities shape the international trading system. With an introduction to tariffs, subsidies, and the development of the world trading system, the chapter describes the evolution of the World Trade Organization and its impact on the global business environment. While in theory many countries adhere to the free trade ideal outlined in Chapter 5, in practice most have been reluctant to engage in unrestricted free trade. The US continues to restrict trade in technological and militarily sensitive products as well as in textiles, sugar, and other basic products in response to domestic political pressures. OUTLINE OF CHAPTER 6: THE POLITICAL ECONOMY OF INTERNATIONAL TRADE Opening Case: United States Cotton Subsidies and World Trade Introduction Instruments of Trade Policy ...
Words: 5896 - Pages: 24
...------------------------------------------------- Uber’s Legal Problem in Thailand RMIT International University Vietnam Bachelor of Commerce Program Assignment Cover Page Subject Code: | BUSM3311 | Subject Name: | International Business | Location & Campus (SGS or HN) where you study: | RMIT Vietnam | Title of Assignment: | Uber’s legal problem in Thailand | Student name: | Dinh Viet Tuan Anh | Student Number: | S3516558 | Teachers Name: | Daniel Burns | Group Number: | 1 | Assignment due date: | 27/7/2015 | Date of Submission: | 25/7/2015 | Number of pages including this one: | 4 | Word Count: | 754 | According to Bloomberg (2015), Uber is a private company that provides a smartphone application that helps people who need a ride to find a car drivers. The company was established in 2009 and it is currently quite popular in more than 150 major cities around the world (Tuoitrenews 2014). Uber provides people a chance to travel in a luxury car with a low fee and it is also convenient when people can grab a car just by some acts on their smartphone (Tuoitrenews 2014). With its own strengths, Uber want to provide its service in Thailand – a potential market in order to expand its market. However, Uber has experienced a legal problem in there that leads to its failure in expanding the market. This essay will analyse the issue that the company has faced and relate it with the theory of internationalizing. According to Dunning’s reasons for internationalizing...
Words: 986 - Pages: 4
...Foreign Direct Investment Learning objectives • Be familiar with current trends regarding FDI in the world economy. • Understand the different theories of foreign direct investment. • Appreciate how political ideology shapes a government’s attitudes towards FDI. • Understand the benefits and costs of FDI to home and host countries. • Be able to discuss the range of policy instruments that governments use to influence FDI. • Articulate the implications for management practice of theory and government policies associated with FDI. The focus of this chapter is foreign direct investment (FDI). The growth of foreign direct investment in the last 25 years has been phenomenal. FDI can take the form of a foreign firm buying a firm in a different country, or deciding to invest in a different country by building operations there. With FDI, a firm has a significant ownership in a foreign operation and the potential to affect managerial decisions of the operation. The goal of our coverage of FDI is to understand the pattern of FDI that occurs between countries, and why firms undertake FDI and become multinational in their operations as well as why firms undertake FDI rather than simply exporting products or licensing their know-how. The opening case describes the international growth of Starbucks. The closing case explores Cemex’s foreign investments. OUTLINE OF CHAPTER 7: FOREIGN DIRECT INVESTMENT Opening Case: Starbucks’...
Words: 5167 - Pages: 21
...INTERNATIONAL MANAGEMENT -- 41-440 SPRING 2014 -- ONLINE INSTRUCTOR: Dr. Winston Awadzi OFFICE: MBNA Room 311E PHONE: 857-6932 E-MAIL wawadzi@desu.edu TEXT AND MATERIALS: Cavusgil, S. T, Knight, G., and Reisenberger. International Business: Strategy, Management, and New Realities, 3nd edition. Prentice Hall, 2014. Wall Street Journal COURSE DESCRIPTION This course is a study and analysis of management problems and practices of international businesses, including the following: organizational structures of global corporations; production and logistics; human resources and labor relations; marketing and financial management; cultural, political, social and environmental constraints; and other relevant topics. Prerequisites: 41-300, 43-300, and 46-300. Credit, three hours. YOU MUST BE OF SENIOR STANDING AND HAVE TAKEN ALL CORE MANAGEMENT COURSES INCLUDING ACCOUNTING, ECONOMICS, FINANCE AND MARKETING). I. COURSE OBJECTIVES * To familiarize students with the various concepts and techniques of international management. * To help students understand the role and importance of international management in the past, present and future. * To help students understand how the practice and discipline have gradually evolved. * To stress the importance of global linkages. * To highlight the many international constraints that exist on domestic economic policy makers. * To improve the skills of students in decision making...
Words: 1501 - Pages: 7
...The Strategy of International Business Learning objectives • Explain the concept of strategy. • Understand how firms can profit from expanding globally. • Understand how pressures for cost reductions and pressures for local responsiveness influence strategic choice. • Be familiar with different strategies for competing globally and their pros and cons. In this chapter the focus shifts from the environment to the firm itself and, in particular, to the actions managers can take to compete more effectively as an international business. This chapter looks at how firms can increase their profitability by expanding their operations in foreign markets, the different strategies that firms pursue when competing internationally, and the various factors that affect a firm’s choice of strategy. Subsequent chapters build on the framework established here to discuss a variety of topics including the design of organization structures and control systems for international businesses, strategies for entering foreign markets, the use and misuse of strategic alliances, strategies for exporting, and the various manufacturing, marketing, R&D, human resource, accounting, and financial strategies that international businesses pursue. OUTLINE OF CHAPTER 12: THE STRATEGY OF INTERNATIONAL BUSINESS Opening Case: MTV Networks Introduction Strategy and the Firm Value Creation Strategic Positioning Operations: The Firm as a Value Chain Global...
Words: 4615 - Pages: 19
...Regional Economic Integration Learning objectives • Be able to explain the different levels of regional economic integration. • Understand the economic and political arguments for regional economic integration. • Understand the economic and political arguments against regional economic integration. • Be familiar with the history, current scope, and future prospects of the world’s most important regional economic agreements. • Understand the implications for business that are inherent in regional economic integrations agreements. This chapter discusses regional economic integration, agreements among countries within a geographic region to achieve economic gains from the free flow of trade and investment among themselves. There are five levels of economic integration. In order of increasing integration, they include free trade area, customs union, common market, economic union, and full political union. Integration is not easily achieved or sustained. Although integration brings benefits to the majority, it is never without costs for the minority. Concerns over sovereignty often slow or stop integration attempts. The creation of single markets in the EU and North America means that many markets that were formerly protected from foreign competition are now more open. This creates major investment and export opportunities for firms within and outside these regions. The free movement of goods across borders...
Words: 6443 - Pages: 26
...National Differences in Political Economy Learning objectives • Understand how the political systems of countries differ. • Understand how the economic systems of countries differ. • Understand how the legal systems of countries differ. • Be able to explain what determines the level of economic development of a nation. • Discuss the macro-political and economic changes taking place worldwide. • Describe how transition economies are moving towards market based systems. • Articulate the implications for management practice of national differences in political economy. This chapter discusses differences in national political, economic, and legal systems, highlighting the ways in which managers in global settings need to be sensitive to these differences. Political differences are described along two dimensions: collectivist vs. individualist and democratic vs. totalitarian. Economic systems are explored in terms of market characteristics: market economies, command economies, and mixed economies. Legal systems are discussed in terms of the protections they offer for business: intellectual property, product safety, liability and contracts. The opening case explores the political and economic situation in Venezuela since Hugo Chavez was elected president in 1998. The closing case describes the challenges facing Indonesia, a vast country populated mainly by Muslims that stretches over 17,000 islands. Indonesia...
Words: 6929 - Pages: 28
...Global Production, Outsourcing, and Logistics Chapter Outline OPENING CASE: Building the Boeing 787 INTRODUCTION STRATEGY, PRODUCTION AND LOGISTICS WHERE TO PRODUCE Country Factors Management Focus: Philips in China Technological Factors Product Factors Locating Production Facilities THE STRATEGIC ROLE OF FOREIGN FACTORIES Management Focus: Hewlett Packard in Singapore OUTSOURCING PRODUCTION: MAKE-OR-BUY DECISIONS The Advantages of Make The Advantages of Buy Trade-offs Strategic Alliances with Suppliers MANAGING A GLOBAL SUPPLY CHAIN The Role of Just-in-Time Inventory The Role of Information Technology and the Internet SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Li & Fung Learning Objectives 1. Explain why production and logistics decisions are of central importance to many multinational businesses. 2. Explain how country differences, production technology and product features all affect the choice of where to locate production activities. 3. Discuss how the role of foreign subsidiaries in production can be enhanced over time as they accumulate knowledge. 4. Identify the factors that influence a firm’s decision of whether to source supplies from within the company, or from foreign suppliers. 5. Articulate what is required to efficiently coordinate a globally dispersed production system. Chapter Summary ...
Words: 6454 - Pages: 26
...Global Production, Outsourcing, and Logistics Chapter Outline OPENING CASE: Building the Boeing 787 INTRODUCTION STRATEGY, PRODUCTION AND LOGISTICS WHERE TO PRODUCE Country Factors Management Focus: Philips in China Technological Factors Product Factors Locating Production Facilities THE STRATEGIC ROLE OF FOREIGN FACTORIES Management Focus: Hewlett Packard in Singapore OUTSOURCING PRODUCTION: MAKE-OR-BUY DECISIONS The Advantages of Make The Advantages of Buy Trade-offs Strategic Alliances with Suppliers MANAGING A GLOBAL SUPPLY CHAIN The Role of Just-in-Time Inventory The Role of Information Technology and the Internet SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Li & Fung Learning Objectives 1. Explain why production and logistics decisions are of central importance to many multinational businesses. 2. Explain how country differences, production technology and product features all affect the choice of where to locate production activities. 3. Discuss how the role of foreign subsidiaries in production can be enhanced over time as they accumulate knowledge. 4. Identify the factors that influence a firm’s decision of whether to source supplies from within the company, or from foreign suppliers. 5. Articulate what is required to efficiently coordinate a globally dispersed production system. Chapter Summary This...
Words: 6454 - Pages: 26
...Doing Business in Greece Introduction Greece is an extraordinary country rich in ancient civilization, famous for giving birth to democracy! According to (Business culture, 2014) Greece is an open economy that relies heavily on the service sector, while the remaining national output comes from the industry and agricultural sectors. On top of that Greece is still a significant agricultural and fisheries producer for Europe, but the tourist industry will always be the basis of the Greek economy, which Greece ranks 7th in the most visited countries in EU. It is approximately the same size as New York. It is located in southeastern part of Europe, hanging right down by the beautiful Mediterranean Sea, just east of Italy. Greek culture is rich in dramas, rhetoric, music, and philosophy dating back to Greece’s classical era. It is home to the mythological characters and their popular stories world-wide, The Greek Gods and Goddesses that we’ve watch in multiple movies and cartoon shows growing up, originated from this beautiful country. The most recent highlight from Greece is Sparta, the Hollywood movie 300, which showcases the historical connection between Greece and Persia. Greece finally became an independent nation in the 1800’s, joined the European community in 1981, and became a member of the economic/monetary union at the beginning of 2001 before their economic downfall. Demographics As stated in (Konstandaras, 2013) the total population of Greece is around 11 million...
Words: 1408 - Pages: 6
