Because some people argue that globalization help poor countries to become economically good state & make their living standards improve ,while others arguing that the creation of the free market concepts enable developed countries to make more money at the expense of poor countries resources, labour & cultural unbalances. So some part of the world helping globalization concepts & others resisting the concepts of globalizations, Actually most of them trying to see a balance between pros & cons of the globalization for example governments trying to manage the trading concepts based on the governmental objectives by creating new
Reciprocity and globalization are important factors for purpose of trade. Nonetheless, if concepts much like these two are misunderstood or misused in our economy, it could lead to a negative impact. For example, In “Mr. Trump’s Trade War” written by Douglas
The competitive advantage of these companies and their permanence in the market lies: in their ability to respond to imbalanced resources existent between different countries and, on the ability to create markets were their previously didn’t exist. This sustained competitive advantage depends on three factors. First, on their ability to identify and act (sometimes through high tariffs) to emerging opportunities before the competitors reduce the profits in markets in which these were installed previously. Second, on the knowledge of markets and suppliers, and ultimately on their ability to attract and maintain a loyal network of business partners (Oviatt and McDougall 1994).
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
In the late 1980s, globalization theory started to emerge as the new forms of capitalist hegemony appeared (Savage, Bagnall and Longhurst, 2004). Globalization is a process of encouraging closer political, economic, social interaction and break down or reducing the trade barriers between countries (Mittelman, 2000). It can be divided into two main categories: globalization of markets and globalization or production. Globalization of markets is a process of the worldwide market integration and has created a global market place (due to countries are reducing trade barriers). For example, in this 21st century, products that we consume or access are no longer from just one person, company or place but globally as the presence of the global market
Glocalisation seeks to involve and thus acknowledge and local preferences and culture in products. As explained by Phillip Hong and In Han Song, glocalization corresponds to the integration of local markets into world capitalism. Although this concept is not yet a part of the dominant mentality in product design, this research shows there are examples of such a tendency among global companies. ]
The need for promotion arises from the intensity of competition. Sellers must somehow attract customers' attention. Sales promotion is generally broken into two major categories: consumer-oriented and trade-oriented activities. The consumer-oriented promotion tools are aimed at increasing the sales to existing consumers, and to attract new customers to the firms.
However, with the increasing cultural distance and wider range of host countries, the abovementioned advantages will be weakened or neutralized. At the same time there will be higher levels of complexity and uncertainty for transaction cost, managerial decision-making regarding MNE strategies and organizational choices (Shane et al., 1995), the management of an MNE's portfolio of foreign subsidiaries from a culturally diverse country base (Tihanyi et al., 2005), and human resource management (Schuler, Dowling, & Cieri, 1993). Generally, such increased operational difficulties
Introductions International trade refers to a country trade goods and services to another country. International trade open up the world potential market to increase producer sales quantity and increase competition on foreign country. apart from these, international trade will create job opportunity and hence reduced unemployment rate as well as positive balance of payment. however, it might bring negative effects to a country as well, therefore, government play an important role in implementing trade restriction on imported goods in order to prevent imported goods destroy the domestic market or at certain extend, monopolize the market. 94 words A ) Discuss the forms of restriction on international trade.
Using this NPV method, the best project will be the strategic acquisition of Schnapps Brand as suggested by Nigel Humbolt. It is noteworthy to comment that while the capital spending of this project is under the capital spending limits of the company, it also brings diversity in the core business and is promissory in terms of market expansion. With the IRR of 28.7% and projected return of $134 million, accepting this project will provide substantial gain to the revenue figures and confidence of the shareholders. Therefore, on the basis of Equivalent Annuity, the projects will be ranked as follows: 1.