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. There are many examples of MNC's such as Nike or Primark. MNC's play a massive part in the development of globalisation as they often invest heavily into the country they move into. They will build good quality factories to produce the goods and also introduce effective manufacturing methods. These manufacturing methods can be replicated by other businesses in the countries and improve their ability to manufacture goods.
Declining market in North America allowed for growth in emerging markets such as central and South America as well as Central/Eastern Europe, Asia and China. In order for these markets to be successful the company strategically consolidated mature markets and positioned themselves to improve margins through higher volumes of premium and specialty brands. By cross fertilization of best practices between sites, utilizing capacity in growth markets , working with a smaller number of its best suppliers and building considerable positions in markets by acquisitions; Interbrew was able to build brand strategy. One of the main issues to be addressed is how Interbrew/Stella Artois would become a global brand. As mentioned before acquirement of breweries across markets was an intentional and integral part in building a brand strategy.
Case Analysis Paper on the CEMEX Nowadays more and more companies for any reasons are getting involved in mergers and acquisitions. But if they succeeded in the Pre-Merger Planning and Merger Process itself, they will eventually face another challenge such as the Post-Merger Integration (PMI). Namely the Post-Merger Integration will test whether the merger is a success or failure. In this case CEMEX has shown well-planned and efficient PMI process. CEMEX is one of the largest cement manufacturers in the world.
Expanding franchises in countries where they already have proven success is a more cookie cutter approach in markets like Canada, Mexico, Taiwan and Hong Kong. The growth path model developed by Ruth’s Chris can guide them when opening these new locations in already existing markets by using the same methodology already shown to be efficient and profitable in those same areas. This option is a safer approach that could pose saturation risks and slower growth as restaurants already exist. Expanding to a new foreign market can also pose risks; however there are other types of ownership or entry methods that can be considered to increase opportunity like joint ventures or foreign direct investing. This opens up opportunities for larger surges of capital.
This would limit the government spending. Looking at the current proposal of increasing taxes as an intervention on behalf of the upper income or wealthy would not be acceptable. Their policy would be for the government to spend more and try to prevent any more deficits. In the past, Classical economists and Keynesian economist were in debate .The Classicalist’ laissez-faire policy approach back in 1929 during the Great Depression, did not work. In President Roosevelt’s time, during World War II, Keynesians’ approach pulled the economy out from the Depression and ultimately improved the
The switch is easy and cost-efficient. c. the ratio of fixed to variable costs is high: Inventec has to reduce prices to utilize installed capacity. (e.g. its new manufacturing compound in Pudong, Shanghai) d. OEMs own the distribution channel and make the rules. 2.
5. MNC's curb local monopolies, create competition among domestic companies and thus increase their competitiveness. 6. Host country can reduce imports and increase exports due to goods produced by MNC's in the host country. This helps to improve balance of payment.
1. What benefits have CEMEX and the other global competitors in cement derived from globalization? Globalization has given many benefits to CEMEX and its competitors. First of all, it reduced the tariffs of product exportation by acquiring local plants and facilities instead. By doing so, these cement companies could control the localized quarries, which give them the proximity to the raw material needed for cement production.
o Talent across markets- Ability to identify new emerging markets and having advantage of an already set up network system o Proximity to raw materials gives benefits on distribution channel. as CEMEX acquired the local plants and built distribution terminals, it has gained a competitive advantage of transportation cost. o Advantage of distribution and delivery process through sophisticated information systems- How has it been able to outperform it’s leading global competitors in the cement industry. Several elements together have made the CEMEX the largest international trader in the cement industry. The most important one, is that CEMEX has always been distinguishing itself by the intent of its focus on emerging markets.
There are mainly three kinds of FDI: Greenfield investment (The main internationalisation strategy of Aldi and Lidl) Acquisition (Sometimes used by Aldi or Lidl, for instance the acquisition of Hofer) Joint-venture (not discussed in this case) The main advantage of greenfield investment against acquisition are: The flexibility: It gives them the maximum design flexibility of their stores and their warehouse; moreover, they can choose precisely the location of their business in order to optimize the rental cost and the catchment area of their stores. They are able to choose their own suppliers. Economically, it can be interesting. In effect, some countries have policies to encourage investment and creation of new jobs as reducing tax. So by creating new jobs, Aldi and Lidl can benefit from these policies.