Global Business Strategy

3667 Words Aug 25th, 2010 15 Pages
Global Business Strategy
1. The Situation The forces of globalization are generally credited with the major role played in increasing the access of organizations to countless resources. Due to market liberalization for instance, large corporations are able to import cheap resources from various global regions and as such patronize the market through price leadership strategies. Nevertheless, another crucial characteristic of globalization is that it allows economic agents an incremental access to larger customer markets. This virtually means that manufacturers get to sell their products to numerous global regions and exponentially increase their revenues. Miana Fashion is one of the companies currently looking to expand its business
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From an economic standpoint for instance, China is the third largest economy of the globe, with a gross domestic product of nearly $8 trillion; France is the ninth largest economy, with a total national output of $2.1 trillion. Both countries revealed a maintained growth trend. What is however interesting is that despite being located on a position inferior to that of China, the French individuals live well above the standards of the Chinese people. To exemplify, while the income per capita of French is of $33,000, the income per capita in China is of only $6,000; the income per capita at a global level is of $10,000, meaning that the Chinese make less money not only in comparison to France, but to most of the world. This is best explained by the massive population in China. The Asian country hosts a total of 1.33 billion individuals, being the largest state in terms of populations; the Chinese people follow numerous traditions and live within imposed restrictions. France is on the other hand only inhabited by 64 million people, who are more liberal and modern; France is the 21st largest country in terms of population. The French remain however better educated than the Chinese, revealing a literacy rate of 99 per cent; the literacy rate in China is of 90.9 per cent. Additionally, the number of years spent in school by the average French individual is of 16, whereas the average number of years spent in school by a Chinese is of
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