Chapter 3, Problem 2RQ

Explanation of Solution

Globalization improved the business opportunity:

• With the use of information system and the internet a company can be operated internationally by enabling the business units that are present in different geographical area and the supplier and the customers that are present at a distance location be in communication.
• The business that is established in the recent trends needs to be competitive in nature, based on the economy of the world because there is wide opening for the entry of new marketers ,providers and supplier which could impact with the business processing or the cost that is required in establishing the business...

Explanation of Solution

Four main ways to organize a business internationally:

There are four ways to organize the business internationally and they are listed and described below:

• Domestic explorer
  • Performing centralization of corporate activities in the home country.
  • The resources are set to be optimized with the functions such as production, sales, marketing and finance.
  • The marketing of the foreign country is purely depending on the domestic home base.
• Multinational
  • It mainly focuses on the financial management and establishing a control in the central home base.
  • The process such as production, sales and marketing that suits for the local conditions are being decentralized.
• Franchiser
  • The product is being created, designed and financed in the home country.
  • The operations such as production, marketing and resources are being relied on the foreign resources.
  • The products are produced locally as it is delicate.
• Transactional
  • The process is made stateless and purely managed globally.
  • It does not contain single national headquarters but will contain headquarters regionally and a world headquarters...