...Expatriate manager A manager who works abroad, or "expat" for short. Foreign direct investment (FDI) Investment in, controlling, and managing value-added activities in other countries. Global Business Business around the globe. Globalization The close integration of countries and peoples of the world. Gross domestic product (GDP) The sum of value added by resident firms, households, and governments operating in an economy. Gross national income (GNI) GDP plus income from non-resident sources abroad. The term used by the World Bank and other international organizations to supersede the term GNP. Gross national product (GNP) GDP plus income from non-resident sources abroad Group of 20 (G-20) The group of 19 major countries plus the European Union (EU) whose leaders meet on a biannual basis to solve global economic problems. International business (IB) (1) A business (or firm) that engages in international (crossborder) economic activities and/or (2) the action of doing business abroad. International premium A significant pay raise when working overseas. Liability of foreignness The inherent disadvantage that foreign firms experience in host countries because of their non-native status. Multinational enterprise (MNE) A firm that engages in foreign direct investment (FDI). Nongovernmental organization (NGO) An organization...
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...An Introduction to the New Global Economy and Strategies for Competing Globally APA Headings | Level | Format | 1 | Centered, Boldface, Uppercase and Lowercase Headings | 2 | Left-aligned, Boldface, Uppercase and Lowercase Heading | 3 | Indented, boldface, lowercase heading with a period. Begin body text after the period. | 4 | Indented, boldface, italicized, lowercase heading with a period. Begin body text after the period. | 5 | Indented, italicized, lowercase heading with a period. Begin body text after the period. | 1. Introduction. Provide a brief focus statement about your paper and what the reader can expect. 2. Global World Economy. Discuss the importance of globalization in today’s global economy. 3. Cultural and Political Differences. Discuss cultural and political differences that global managers consider when expanding abroad. Are values and ethics different in each culture? Explain. 4. Going Global Strategies. Explain why companies are forced to expand globally. Discuss possible strategies for competing globally. Evaluate the advantages and disadvantages of the different strategies and policies that firms use to enter foreign markets. What are the main factors that influence a firm’s decision of market entry? 5. Suggestions and Recommendations. Provide practical and specific recommendations and suggestions for managers and expatriate to expand in this country of your choice for this project. ...
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...which the tastes and preferences of consumers in different nations are beginning to converge. However, significant differences in culture, politics and economies exist between countries and adaption of products and strategies to local conditions is often necessary for international business to succeed. *Globalisation of production: Sourcing goods and services from locations around the globe in an attempt to take advantage of national differences in the cost and quality of factors of production (labour, energy, land and capital), thereby allowing them to compete more effectively against their rivals Example: Boeing aircrafts use companies s for all over the world for different components (e.g UK, France, Canada, Sweden) Firms are better able to respond to international customer demand due to improvements in transportation technology e.g jet transport; temperature controlled containerized shipping and co-ordinated ship-rail truck systems *Globalisation of institutions: Institutions are needed to help manage, regulate and police the global marketplace and promote the establishment of multinational treaties to govern the global business system. Environmental factors facilitating globalisation 1. Liberalisation: reduction in the barriers to trade and foreign investment (cooperation among nations: WTO & RTAs) 2. Political environment: changing ideologies, privatisation and the emerging market economies 3. Rising disposable incomes: economic...
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...This paper seeks to look at Vietnam’s economy, financial sector, and political sector in respect to the textile industry. In an attempt to evaluate the feasibility of entering a foreign market, we focus our paper on a mid-sized company called Augusta Textile Company. This paper seeks to evaluate Vietnam’s potential for investment, particularly in the textile industry. While the company seeks to increase revenues and keep costs of production low, the company must look to expand to growing markets. However, various risks must be taken into consideration, as they can be great barriers to entry. The company looks to expand with the least financial risk, but greatest potential output and revenue. In evaluating the textile industry in Vietnam, as well as potential modes of entry, we may conclude a recommendation for Augusta Textile Industry’s future potential expansion. Introduction Country Basics Vietnam is formally known as the Socialist Republic of Vietnam and is located in the South China Sea. It is the thirteenth most highly populated country in the world (Hossain, 2010). The current population of Vietnam is estimated at about 90.4 million (The Heritage Foundation, n.d.). There are 54 officially recognized ethnic groups in Vietnam, but the majority are Viet (also known as “Kinh”), comprising of about 86% of the total population. Other significant ethnic groups are the Tay, Thai, Muong, Khome, and Hoa. The vast majority of the Vietnamese population speaks the Vietnamese...
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...economies of scale in the domestic and international market, Tata can lower operational costs potentially and become a stronger competitor, both domestically and internationally; Tata controls many businesses ranging from Eight O’clock Coffee Co. in the United States to the Taj Group of hotels, which took over management of the landmark Pierre Hotel on Central Park in New York City. Through international bold moves like these, Tata have the opportunity to learn more about a particular market or world region and to supplement or strengthen domestic growth; The Tata Group is the largest conglomerate in India. Its latest revenues are estimated at $67.4 billion, of which 61 percent is from business outside India. Its global and diversified strategy makes it exploiting interdependencies among multiple countries. And international operation will make it take advantage of locating for tax benefits and regulations strategically. Drawbacks of going international; Tata Group is the largest conglomerate in that country. Its latest revenues are estimated at...
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...Hennart ¸ CentER and Department of Organization and Strategy, Tilburg University, The Netherlands Correspondence: J-F Hennart, Professor of International Management, CentER and Department of Organization and Strategy, Tilburg University, PO Box 90153, 5000 LE Tilburg, The Netherlands. Tel: þ 31 13 466 2315; Fax: þ 31 13 466 8354; E-mail: j.f.hennart@uvt.nl Abstract Both Anderson and Gatignon and the Uppsala internationalization model see the initial mode of foreign market entry and subsequent modes of operation as unilaterally determined by multinational enterprises (MNEs) arbitraging control and risk and increasing their commitment as they gain experience in the target market. OLI and internalization models do recognize that foreign market entry requires the bundling of MNE and complementary local assets, which they call location or country-specific advantages, but implicitly assume that those assets are freely accessible to MNEs. In contrast to both of these MNE-centric views, I explicitly consider the transactional characteristics of complementary local assets and model foreign market entry as the optimal assignment of equity between their owners and MNEs. By looking at the relative efficiency of the different markets in which MNE and complementary local assets are traded, and at how these two categories of assets match, I am able to predict whether equity will be held by MNEs or by local firms, or shared between them, and whether MNEs will enter...
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...Bad Fit Country 9 Business Strategy 10 Information in the News Concerning the Best Fit Country 11 Conclusion 12 APPENDIX 14 References 18 The Brattle Group Profile of the Company According to Zhu (2006), the Brattle group offers solutions to complex economic, supervisory, as well as financial processes for multinationals, legal firms and state governments across the globe. The company believes that any important insights depends on working hard, respecting details, as well as follow the principles. When the clients face massive challenges, then Brattle group works hard to give clear and independent answers, while being transparent, as the truths are better than giving them false comforts that are created from opinions that cannot survive scrutiny. The truth is provided using relentless pursuit of professionalism, as well as quality analysis. The company was established in 199 under five principles that adhere to integrity and excellent performance in economic and financial consultancy. In 1995 the company merged with Incentives Research to become stronger through the merged expertise in the energy sector, where it opened an office in Cambridge (Phillips et al., 2011). According to Zhu (2006, the company has managed to expand throughout America and Europe serving more than 300 people, where it started by establishing an office in Washington DC with concentration in regulation, public policies and antitrust laws. The firm entered the Europe market in...
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...Business environment risks report in China 1. Introduction Over the past three decades a fundamental shift has been occurring in the world economy. We have been moving away from a world in which countries are isolated to each other to the integrated and independent system (Hill, C. W., Krishna, U., & Wee, C. H., 2014, p4). It is wildly acknowledged that Globalisation process has increased chance that foreign firms enter into a country to pursue the extension of their business. Within these emerging countries, no doubt that China is one of the perfect choices. As the second largest land area country with the most population, marketing in China is huge, especially when the economy innovation in 1978 and the country’s admission into the World Trade Organization (WTO) in 2011. (Walters, P. G., & Samiee, S., 2003). They are two milestones that changed the layout of business in China. It means trade barriers have been reduced and markets are more open to international firms. However, given the membership of WTO and cross-border investment also brings some challenge and risks. For example, lack of understanding about the host country’s culture, political system or business practices often lead to frustration and dismal business performance. (Hong, J. F., 2004) So, this report will analyse the business environment in China from four different aspects. Distinctively, they are political, economic, regulatory and cultural environment. Some data and figures will be cited to...
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...transactions taking place across national borders for the purpose of satisfying the needs of individuals and organizations. Some of the well known International businesses (MNE’s) are Wal-Mart, Toyota Motors, General Motors and Volkswagen for their performance, moreover annual revenue. Decisions with regard to movement in to global arena should be taken with care as there is certain degree of risk involved. There should be value in moving to different markets (eg- An organization may lack the skills needed to make use of the potential-Integrate R&D activities or incompatible cultures The cost of managing complex infrastructure should not –outweigh the benefits of increased scale Some industries posses’ particular globalization challenges for example companies operating in the manufacturing sector (automobile makers) often faces complexities in integration and particularly vulnerable to economic slowdowns which reduces their ability to expand. (Alexander & Korine, 2008) According to Wall & Rees (2004) the factors to be considered when investing abroad can be classified in to four areas-Supply factors, demand factors, Political factors and others. Under supply factors, production costs, Distribution costs and access to key technologies are key considerations. When it comes to production costs foreign locations may be more attractive due to lower costs of skilled or unskilled labor, lower land prices, and tax rates. Furthermore some locations are popular as low cot centers of...
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.................... 10 7. ETHICAL ISSUES .................................................................................................... 11 8. REFERENCES......................................................................................................... 13 9. APPENDIX ............................................................................................................ 14 The Learning Business Research Report | Campus: 10. 1 CHECKLIST OF ASSESSMENT CRITERIA .................................................................. 18 The Learning Business Research Report 1. Executive Summary This report discusses the rationale behind strategic decision taken by Royal bank of Scotland (RBS) in moving its headquarters from Glasglow to Leeds, Yorkshire. The benefits of financial clustering in the UK have been analyzed and assessed on the basis of theoretical evidences collected from literature review and qualitative data collected. There is an emphasis on financial information...
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...Riordan Corporate Compliance Plan LAW/531 June 11, 2012 James Mc Phail Riordan Corporate Compliance Plan Riordan Manufacturing, Inc. Riordan Manufacturing is a global and international company that produces and sells plastic parts for the beverage manufacturing industry, automotive industry, aircraft manufacturers, and fan manufacturers. Riordan owns four major facilities in the United States Albany, Pontiac, Michigan, and Georgia. In addition, one joint venture located in China, in the town of Hangzhou. Riordan headquartered in San Jose, California is responsible for the creation of new designs, research, and development. The company employs 550 people worldwide, with annual earnings of $46 million. Enterprise liability Riordan currently maintains a corporate compliance plan. However, the company should improve the governance system to manage, control, and protect the company stakeholder’s assets efficiently against potential legal threats. Riordan should implement a strong corporate governance meeting structure that will allow conformance and compliance of new regulations and legal requirements. The implementation of procedures and corporate policies will help the employees to focus and will prevent compliance violations. Both officers and employees must comply with applicable laws and guidelines provided in the corporate policies. Regular reviews of the following governance committees will help to manage the liability of the directors...
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...306) Semester: - Fall 2013 The Topic: - International Business Activities In Ooredoo Submission Date: - Monday 23/12/2013 Instructor Name: - Dr. Yasir Yasin *Group Members 1. Khalifa Elbeltagi 200911802 2. Abdulrahman Al Fayhani 200809233 3. Ahmed Shafi 200902883 4. Abdulla Al yahri 200903162 5. Beshr Al-Hallack 200702653 About the Organization Introduction History Qatar telecommunication started providing its services in 1949, but it was officially announced in 1987 under the Qatari law number 13. The type of services that was offered and provided to the customers that time was the land line telephones with a capacity of fifty lines, but in the year of 1953 the telephone lines get extended to one hundred and fifty lines which showed an interest towards telephone landlines at the time. In 1970, the development of the national telephone services began and it became under Qatar National Telephone services by cable and wireless as well. Qatar telecommunication was the monopoly at those days until on November 2006 the monopolization stopped and the Emir issued the law number 34 of 2006 to restructure the administration, whereby ICT Qatar has announced a new telecom in the country Qatar by the name of Qtel. Moreover, Qtel became the only representative of the telecommunication sector in Qatar, were almost the whole population...
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...Environment Specific Environment refers to forces or institutions outside the organisation in which that the organisation interfaces in the course of conducting its business. In other words, specific environment refers to elements outside the organisation that have direct impact to an organisation. Such forces or institutions are directly relevant to the organisational goals because they have direct and immediate impact to the decision and actions of the managers. The specific environment in each organisation is unique and changes with conditions. The common elements are customers, suppliers, competitors and pressure groups. 2.1 Customers Customers and clients to an organisation refer to those individuals or organisations that purchase products or services offered by the firm. Organisations exist to meet their economic objectives by earning certain sum of profits. Customers and clients also possess uncertainty to the organisations due to their changes in tastes, lifestyle and preferences. Therefore, many...
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...CH 8 MULTIPLE CHOICE 1. The major reason that Chinese firms can invest in buying U.S., European, and South American firms is |a. |government policies in these regions that encourage foreign direct investment. | |b. |its vast foreign-exchange reserves from its trade surplus. | |c. |increasing anxiousness of owners in developed countries to “cash-out” and take profits rather than continue to operate | | |businesses. | |d. |the economic downturn in these regions which has made the purchase price for firms relatively cheap. | ANS: B PTS: 1 DIF: Medium REF: 229 OBJ: 08-01 TYPE: application 2. The impact of China on the world economy is due to |a. |the size of its domestic market. | |b. |the movement away from Communism by the Chinese government. | |c. |its highly-competitive state-owned firms. | |d. |the lack of protection for intellectual property rights. ...
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...known as enterprise or firm) is an organization involved in the trade of goods, services, or both to consumers.”* The word economy according to Wikipedia.com* is defined as “An economy consists of the economic system of a country or other area; the labor, capital, and land resources; and the manufacturing, production, trade distribution, and consumption of goods and services of that area”.* In the simplest form of explanation business is the economy, there can’t be one without the other. From all of the big market corporations such as Wal-Mart, Apple, McDonalds, etc., down to the small businesses started by entrepreneurs. Businesses are labeled into two categories; for-profit and non-profit businesses. For-profit business is defined as “a business or other whose primary goal is making a profit.” Any place where you go and receive a good or service and you must pay in return is a for-profit business. A non-profit business or organization is defined as “An organization which focuses a goal such as helping the community and is concerned with money only as much as necessary to keep the organization operating.” Homeless shelters, soup kitchens, medical institutes, foundations for children, even charities in themselves are non-profit organizations created for the good of giving back to the community. For-profit businesses bring in a crucial number of advantages from investment in research and development, rewards for shareholders, high profit that attracts new firms to the industry, risk...
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