INTERNATIONAL BUSINESS ANS Q.2
a) Evaluate the different ways in which Bata has interacted with foreign political systems in its investments and operations abroad.
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Multinational enterprises (MNEs) like Bata must operate in countries with different political and legal conditions, so the political impact on the foreign investments is very important. This paper explains this issue based on the Bata case in three parts. The first part evaluates the different ways in which Bata has interacted with foreign political systems in its investments and operations aboard. In the second part, the advantages and disadvantages, which MNEs bring to their company and the host-country when doing foreign direct investment, are analyzed
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Since the opening of China’s doors to world trade in the late 90’s, it has become an emerging super power.
Hence, China may be a threat to India’s current competitive position in the cashew nut production because it is also capable to support cashew processing with its abundance of human resources, low-wage rates, and possible training in the manual dexterity required in the premium cashew nut production. China is currently engaging in new markets and providing cheap manual labor to other manufacturing. With this, China can see that the increasing profitable cashew nut industry and decide to enter it because it has the capability to do so.
Moreover, the current formulation of the European Union (EU) provides that its members eliminate trade barriers for imports and exports between each other may be a possible threat to India’s United Kingdom market. Since the UK can virtually import anything from its neighboring countries without any cost, it might affect the demand of cashew nuts –the Europeans may divert their attention from cashew nuts to other products popular in its neighboring countries. India’s competitiveness could also be threatened by the increased Research and Development improvement that countries worldwide are engaging in nowadays.
Brazilians (India’s most prominent competitor in the cashew nut industry) may possibly find machinery that can be
China has been improving its economy from last few years.It is only due to its efforts to overcome USA
Surebuild, Inc. is looking for a jackhammer operator for their company. Mei-Lin is the manager who will be over the hiring. An advertisement was placed stating that the candidates for the job were required to have a high school diploma; however nowhere in the advertisement did it indicate that experience was required. There are four candidates for the job, two meet the requirements of having a high school diploma, and two do not. The first candidate is Eric, he has experience on the jackhammer but does not have a diploma. Another candidate Felipe also has experience, however does not meet the requirements of having a highs school diploma.
The Brazilian acai berry has been a food staple for low income families for years and a cultural symbol for generations. This berry is vital in Brazil, where it is farmed and, until recently had a relatively small market. However, after an Oprah interview the demand for acai has become an international affair. The rising demand has created a free market; however the once inexpensive food staple has become too expensive for the low income families. This report will analyse the current markets advantages and disadvantages, followed by two possible government intervention models. The examined interventions will be export tariff and price ceiling.
China is an example of an emerging superpower; its economy has doubled in size every eight years since 1980. Since 2000, China has been the largest recipient of overseas investment, and now foreign-owned companies . 60% of the world trade since 2004 has been as a result of Chinas industrialisation. So here we can see that China has developed due to industrialisation, which has increased its power. China use to be a low-income country, so we can see from a low-income country to an emerging superpower how powers can shift over time due to many factors that influence the world. However even though China is an emerging superpower, it has come with some cost to the environment for example China has 16 of the top 20 most air-polluted cities in the world. The polluted air was blamed for over 4000 000 premature deaths in 2003.
Together China and India attributed to prosperity and there are mutual economic benefits. Both countries have formed stronger economic bonds. They have openly cooperated with one another in multi-lateral trade negotiations. As emerging economies continue to grow, there may be a further decline in the share of world output and world exports accounted for by the
6. In the context of international business, what is meant by the term "political risk"? In general, how do MNCs analyze this risk?
The rise in China from a poor, stagnant country to a major economic power within a time span of twenty-eight years is often described by analysts as one of the greatest success stories in these present times. With China receiving an increase in the amount of trade business from many countries around the world, they may soon be a major competitor to surpass the U.S. China became the second largest economy, last year, overtaking Japan which had held that position since 1968 (Gallup). China could become the world’s largest economy in decades.
Governments might change or new political parties might be elected, but the concern of the multinational corporation is the continuity of the set of rules or codes of behavior and the continuation of the rule of law—regardless of which government is in power.
All countries in the world have various political environment and regimes. Political systems differ in terms of the governance, power and the rule of law. A political regime can be defined as structures, activities and processes by which given countries in the world govern themselves. Political systems can be based on either collectivism or individualism. It is essential for business to look at a country’s political environment as a vital criterion in venturing or expanding the business or company to that country. This is because political systems differ and each has its own form of governance that impacts a business in terms of its growth. International companies carry out international manufacture and activity in that they
The concept of online dating has exploded into mainstream culture since the emergence of the Internet. Websites have allowed for the virtual facilitation of basic needs
1. To qualify as a multinational corporation, a firm must meet all of the following criteria except:
The main advantage of doing business in China is the fact that China has emerged as one of the world’s strongest economic forces, driven by the shear number of
As the world’s 3rd largest economy, India is an important trade and economic partner for the United States(Martin, Akhtar , Kronstadt , Kumar ,Siskin,2014).There are many resources which are traded between India and United States. This trade may be due to differences between in labour productivity, factor abundance or other factors.example of products traded between India and US include precious stones and metals,aircraft and spacecraft parts,machinery,optical instrument and equipment,textiles,mineral fuel and oil and machinery(Singh,Verma,2016).This trade is due to a fact called comparative advantage which means if countries specialise in producing goods where they have a lower opportunity cost then there will be an increase in economic
Evans and Richardson (2007), contend that globalized economic environment is complex and changes from time to time and this places a heavy responsibility on multinationals and other business enterprises. They are forced to adapt in order to deal with these factors for the benefit of their organizations. A company cannot ignore political issues when assessing the business environment in which it operates because it affects government policies such as licensing, regulation and taxation, which have a direct consequence on the activities of a business enterprise (Evans, & Richardson, 2007).
THE POLITICAL ENVIRONMENT: The critical concern Political environment has a very important impact on every business operation no matter what its size, its area of operation. Whether the company is domestic, national, international, large or small political factors of the country it is located in will have an impact on it. And the most crucial & unavoidable realities of international business are that both host and home governments are integral partners. Reflected in its policies and attitudes toward business are a governments idea of how best to promote the national interest, considering its own resources and political philosophy. A government control's and restricts a company's