Roles Of Mncs

In this context, US policies offer Nike the opportunity to modernize their product (Research and Markets, 2007). With the policies of the government which offer low-interest rates, the competitiveness of the tax system and stable currency conditions assist the Nike growth. Nike gets the opportunities to advance the growth of business when the most market politic is in stable condition. The free trade policies promote better market penetration overseas. In infrastructure development, the government has helped a lot to the developing countries, thereby gaining an opportunity to Nike expand the range of market.

(Koves and Marer, 1991). The introduction of incentives for exports brought China a step closer to trade liberalization as they reduced the biasness for exports. Chinese government effectively managed trade liberalization using 3 mechanisms in order to improve economic performances. Firstly shock effect; pushes most domestic firms to produce at highest potential efficiency under high competitive market. The increasing number of foreign investors in China will have negative impact on the economy without government’s intervention.

In many cases, whether protectionism or free trading has long been a question for the economy. Clearly, there can't be a correct answer applicable to all different situations. Further, the difference in growth an economic development between different states call for adoption of innovative ideas based on economic performance rather than the trending international policies and campaign for the adoption of free-market policies. As a result, protectionist fits well in a conservative environment in a move to establish economic stability, minimize the number of external factors affecting the local businesses, and limit competition exposed to infant industries. Protectionist economies enjoy improved chances of employment as there is a reduced transfer of labor out or into the country.

3) Investment through joint ventures is a market entry strategy used by the strategic audit firms to enter the global markets. This entails the coming together of a domestic and a foreign company to completely form a new company. Its main advantage is the low costs involved since all related

There are 2 advantages of the target cost pricing: one is setting the expected costs as the pricing basis can enhance the competitive power of commodity prices; the other one is that the target cost formulation has good elasticity that can help enterprises explore their potential. And on the side of consumer, company can price the product more acceptable. That would help to popularize Lucozade(Red). Profit Margins Profit Margin is a percentage of profitability calculated as Net Profit (Net Profit = Revenue-Cost) divided by Revenue.

Finally, the major effect of globalization is produced in the world economy. The aim of globalization is the growth of the global economy by giving firms a superior competitive position with lower cost through free trade and by increasing the number of consumers, products and services. Some people said it helps developing nation-states to “catch up” the industrialized ones and it improves the overall standard of living. Nonetheless, there is a risk for smaller companies that cannot compete in an international market and world governments should promote international investments and try to eliminate barriers to trade even if it causes them some

Though protectionism has a lot of advantages but in long term protectionism has many dark aspects as it specifies the trade of the country whereas free trade opens the barriers of the trade which welcomes international investors an firms to invest in country that helps in increasing the economy of the country. At present stage Pakistan needs protectionism as it has growing industry but after few time it should open the trade for all of the countries. In nutshell, both of the thoughts have their own advantages and disadvantages according to the conditions and circumstances. Till a specific time of progress a country should follow the protectionism and then it should follow the free trade.

The term "export" is derived from the conceptual meaning as companies produce products in their own countries and sell goods to customers in foreign countries. Exporting allows a company to centrally produce its products for several markets and therefore to gain economies of scale since many countries do not offer a large enough opportunity to justify local production. ‘Export development is associated to high levels of cooperation between exporters and importers, high levels of trust, and communication sufficiency. ’(Rodriguez, Wize & Martinez 2013, p.1646)One of the advantages is that makes the company less dependent on sales in its home market and provides a wider range of goods and services In addition, the potential market is bigger by selling overseas.

The main proponents are Hirschman (1958) and Chenery and Strout(1966). The second theory explains the effect of commodity dependence on economic growth. Main proponents are Prebisch (1950) and Singer (1950). a) Hirschman (1958) argued that foreign capital has positive growth effects because it bridges the savings gap in developing countries. He reasoned that FDI has the ability to propel an economy on a natural growth process.

Globalization is right for sure countries, along with the ones within the evolved world or global North where wealthy countries just like the U.S., united kingdom, and Germany can sell extra products and items to new markets inside the global South or poorer nations which include the Philippines and Indonesia. Globalization plays a vital function in presenting no longer only products and services but also method of living and the manner of boom and improvement. the following are some of the monetary benefits of globalization in connection to overseas groups: • Reduces worldwide poverty via imparting work to people. • Contributes to the spread of era by way of introducing new techniques of development. • Provides to the profitability of companies and agencies via earnings and global income.

Foreign investors are attracted towards a country that has a strong economy. This leads to better valuation of the currency. Increasing budget deficits of governments lead to the decreasing valuation of currency. When it minimizes, the currency value makes a favorable, more prominent exchange rate.

In addition, the department takes steps to boost competition in the economy. As Herbert Hoover once said, “Competition is not only the basis of protection to the consumer, but is the incentive to progress.” To boost competition, the department works directly with businesses and universities to aid in development. Without competition in the market, if one company controlled everything, they could set prices at whatever they choose, which would greatly hinder the economy. As a result of better spending tax dollars and improving economic competition, the entire country