First, to encourage global marketing, many countries have free their trading acts and encourage foreign companies to invest in. For example, India signed Regional and Bilateral Trade Agreements which attract investments from East Asian countries and the United States (Gupta & Mitra 1). Therefore, Keurig will have lower political risk to go international. Political risk refers to government interference in the business affairs of foreign persons or companies doing business in a particular country (Chang 1). Second, international markets have more potential consumers.
Explain the term ‘globalisation’ and the role that multinational companies play in the development of globalisation. Globalisation is the process by which the world is becoming increasingly interconnected as a result of massively increased trade and cultural exchange. Globalisation has increased the production of goods and services and has therefore lead to increased trade between countries. This trade encourages countries to work together and removes trade barriers such as quotas and tariffs. This increased openess allows countries to specialise in producing goods which they have a comparitve advantage in (this means they can produce goods at lower unit costs) A multinational Company is a corporation that has its facilities and other assets in at least one country other than its home country.
Explain the main factors that have accelerated globalisation? Globalisation is the process which people, culture, money, goods and information can be transferred between countries with little or no barriers. It the gown of links and interdependence between countries. The factors that have accelerated globalisation; better technology in travel, improved communications, and open trade. Planes are now more efficient, larger and air travel is now cheaper which increases the number of customers.
This will achieve the goals of the company by increasing occupancy rates and business travellers. The constraints placed on the company will be achieved. Return on Investment is greater than 15% and operating profit % of revenue will be greater than 11%. GR has a good reputation and skilled management team which will make this a smooth transition. The current locations are great to make this move as they reside by the airport and will target the business travellers.
SWOT ANALYSIS OF ATNT: (Slide is at the end of doc) STRENGTHS: * Geographically diverse business Geographically diverse business and revenue should help shield the business from shocks in any one part of their business. Different countries or locations around the world have different characteristics. Those characteristics do not always match; therefore, a company can lower their risk by investing in part of the world with low correlations. The lower the risk, the better. This lowers risk and increases the value of the business over the long-term.
This then triggers a sudden increase in private investment. Private investment brings a range of benefits into the area including: more high quality public services and transport, new housing and hotels which helps create this new ‘global brand’ for the area which of course leads to even more inward investment to the area and so on. One of the main, most recent, examples of this idea of using sport as a catalyst for rebranding has to be the 2012 Olympics. With all else mentioned above related to private investments and its benefits aside, the 2012 Olympics created a feel-good factor for many of the local residents in east London. This was achieved by the constant promise to the local people of great improvements to their lives, and through other things such as the new recognition to their area, the physical environmental improvements to their area and the new jobs being created all contributed to the widespread feel-good factor.
This will mean the population will have more money which will go into the economy, this will mean more income for improving infrastructure and services. Also as TNCs move to other countries, job opportunities increase which means that the quality of life will generally improve too. Another benefit would be that the status of an area would be raised; this may encourage investment by other big name Multi-Nationals and most importantly will improve the countries economy drastically as valuable export revenues will be earned. Most important, they will benefit from cultural exchange creating a cultural integration. LEDC countries do not benefit as much as MEDC countries do, for example, sometimes much of the employment is low paid, low skill, long hours, meaning that the countries do not develop economically or give the opportunity to develop their skills.
CONCLUSION The protection of property rights is the driving force behind wealth generation and higher living standards. Property rights not only are inherent in the human condition, but also drive economic growth. Property rights are best preserved in free economies. For that reason, economically free economies are also the wealthiest in the world. Free economies foster people’s sense of private owner- ship and prompt them to value property rights.
The creation of a federal income tax system lowered tariffs and increased America’s presence as a global trading partner. It also raised additional revenues, some of which were used for beneficial programs such as conservation. The Progressive presidents served to strengthen the office of the president and the public began to expect more from the executive
It can provide domestic employment opportunities that may not otherwise be available, resulting in higher levels illegal immigration. In some cases, however,(cons) it results in competition that destroys industries in one nation. There are also risks that free trade may lead to developed nations supporting work conditions in a developing nation that it would not allow in its own. One of the benefits of free trade is that tariffs are often reduced or eliminated. This means that a producer's goods are often more attractive to foreign consumers and that those consumers can acquire those goods at lower prices.