1.. Identify the five cultural dimensions identified by Geert Hofstede and describe them indicating their importance in international business. 2.. Compare the advantages and disadvantages of various modes of entering foreign markets. 3.. Why do we have international strategic alliances? What are the forms and their respective advantages and disadvantages? ---------------- 4.. Consider a firm facing a make-or-buy decision, Provide 2 potential benefits and 2 risks that the firm may face from outsourcing. Similarly, provide 2 potential advantages and 2 disadvantages of in-house production. 5.. Explain the Gini Index (or Coefficient) and discuss how it is calculated and used. 6.. When presented with a scenario, indicate how one might …show more content…
Time Orientation long-term (Japan, taiwan, South Korea) vs short-term (US and Germany are intermediates) 3.. Why do we have international strategic alliances? What are the forms and their respective advantages and disadvantages? If you've reached a point that you feel you've gotten about as far as you can on your own in charting your export strategy, it's a good time to consider joining forces with another company of similar size and market presence that is located in a foreign country where you are already doing business, or would like to. First, it's important to understand exactly how a global strategic alliance works, and what it can and cannot do for you. A Global Strategic Alliance Is Not an Acquisition A global strategic alliance is usually established when a company wishes to edge into a related business or new geographic market -- particularly one where the government prohibits imports in order to protect domestic industry. Typically, alliances are formed between two or more corporations, each based in their home country, for a specified period of time. Their purpose is to share in ownership of a
In this report I am going to define the meaning of Globalisation and assess the impact of globalisation on the way the business operate.
Strategic alliance is an agreement between two or more organizations to cooperate in a detailed business activity, so that each get benefited from the strengths of one an other, and gains competitive advantage. The formation of strategic alliances has been seen as a comeback to globalization and increasing doubt and difficulty in the business environment. Strategic alliances occupy the sharing of knowledge and expertise between partners as well as the reduction of risk and costs in areas such as relationships with suppliers and the development of new products and technologies. strategic alliance is sometimes equated with a joint venture, but an alliance may involve competitors, and generally has a shorter life span. Strategic partnership is a closely related concept. This article analyzes definition of strategic alliance, its benefits, types, process of formation, and provides a few cases studies of strategic alliances. This paper tries to synthesize the scope and role of marketing functions in the determination of effectiveness of strategic alliances. Several propositions from a marketing perspective about the analysis of alliance process are formulated. On the basis of the propositions, a framework is developed for future research
i. DEFINITION: a number of affiliated businesses which function simultaneously in different countries, are joined together by ties of common ownership of control, and are responsible to a common
Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades. This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more efficient with a lower opportunity cost.
efficiently than if either firm attempted to do so on its own. The role of strategic alliances in shaping the
1. To qualify as a multinational corporation, a firm must meet all of the following criteria except:
We found innovation, cost reduction and market conditions as key elements supporting a successful internal strategy and strategic alliance and diversification to be among the most widely applied strategies for a foreign market penetration and development, while fusions and licenses were the least preferred.
Six months ago, Antiques R Us (a Canadian corporation) entered into a contract with Yankee Antiques (an American company) to purchase “a desk used by George Washington himself after his retirement from the Presidency”. The sum of $500,000 was to be paid to Yankee Antiques after 30 days of
The level of internationalisation around the globe has grown throughout the years, with advanced technologies the ease and ability to work with foreign countries has also grown. However, firms do not simply interact with each other with no outside party involvement; the government can be seen to play a large role in conducting international business. Governments continuously have the responsibility to act in the manner that they believe is best for their nation; this includes decisions regarding protectionism, which may serve to aid domestic industries but simultaneously hinder international business. It can be seen that governments do not always act in their nation’s best interest and are corrupt which can serve to increase the risks and costs of entering an international business environment. While these are examples in which the government makes international business difficult it can also be seen that the presence of a government is instrumental in creating international business effectiveness, whether this be through their legal system or from trade agreements. This makes the role the government plays paradoxical; as their involvement generally increases the risks and costs of firms seeking to internationalise, whilst simultaneously playing a significant role in creating international business effectiveness.
Measuring a potential business venture has many aspects which the international manager must be aware of in order to convey the correct information back to the decision makers. Being ignorant to any of the aspects can lead to a false representation of the project, and hence an uninformed decision being passed. In order for a business to survive it must grow. For growth to be optimal, management must first be able to identify the most attractive prospective leads. The country as a whole, specifically geography, government, and financial aspects must be looked at in order to yield the best possible picture of the market a company wishes to enter. Concentration should be placed on gathering reliable facts
Companies can decide to go global or to enter international markets for various reasons, and these different objectives at the time of entry that enable the business to produce different strategies and the performance goals, and even forms of market participation.
Subject : Appraisal of a MNE's recent market entry (2007-2010) ( 1. Firm Motivations for internationalization 2. Entry Strategy 3. Corporate Strategy)
Well known companies like Nike, Microsoft, Sony, Shell Group are just some of the big companies that went global and expanded their trading around the world, they are large businesses that operate internationally in many countries. Development of worldwide integration urges companies to reach out international markets and interact with foreign customers. Businesses focus on fulfilling the demand of the market by its products or services, besides their target is increasing profit, in order achieve these goals they favor to expand their work in a foreign market. Other reasons to internationalize their business may be to become
Partners may provide the strategic alliance with resources such as products, distribution channels, manufacturing capability, project funding, capital equipment, knowledge, expertise, or intellectual property. The alliance is cooperation or collaboration which aims for a synergy where each partner hopes that the benefits from the alliance will be greater than those from individual efforts. The alliance often involves technology transfer (access to knowledge and expertise), economic specialization, shared expenses and shared risk.
This is a research paper on international business in the United Kingdom. This paper will show investors everything about the UK and if they wish to invest in the country. Before any person should invest in any place that is unknown to them, they should conduct research like here before you. The following paper includes research like culture, background, trading, business ethics, recent events. An understanding of this information will help you decide on investing.