The study of global business is relevant to any person who is in the business world, no matter the size of their organization. The first reason is that so many things are imported from other countries. Closing a deal in China will be a very different process than would be in France than it is in India. Customs of other countries need to be followed if a businessperson is to be successful worldwide. Also important to consider are the difference in shipping costs from different ports, as it will change the “landed cost” of the item, and the retail price and profit margin.
Workshop Three (Individual Assignment) Case Analysis Averett University International Business Course, BSA 545 February 20, 2013 Question #1: There are several factors that need to be examined in the argument that developing countries ought to be able to maintain their subsidies, the ones to which Hochberg objects, because these countries need advantages to break into and become established in world markets. Will subsidizing exports help the domestic economy in the future? Will the change in operations lead to job exports from the United States and harm the developing countries economy for not leveling the playing field? Will new operations contradict U.S. policies by facilitating the export of products used for repression and providing corporate subsidies? Changes in operations will help increase job exports.
Trade Most goods we buy have a label on them. This ‘made in’ label tells us where the items have been produced and therefore from where they were imported from. The exchange of goods and services between nations is trade. International trade is based on a country specializing in producing a surplus of gods it can produce most efficiently in order to gain a competitive advantage. Trade allows for: businesses to grow and create more jobs, a wider choice of goods and services often at cheaper prices, economic growth and the strengthening of strategic and political ties between nations.
The Vioxx was believed to increased cardio vascular problems. Addition to that, Senator Charles Grassley quoted on the case study that ‘a blockbuster drug (had become) a blockbuster disaster’ (Lawrence & Weber, 2011). From this result, it is clearly shown that it is important for all companies to act ethically and should be socially responsible in all their actions for them not to have a negative image to the market and can also have a huge impact to their stakeholders. ‘Corporate Social Responsibility [CSR] is the idea that businesses interact with the organization’s stakeholders for social good while they pursue economic goals’ (Lawrence & Weber, 2011). This means that all stakeholders expect companies to always act responsibly and to consider the society in all their business operations.
The company is liable for every package it ships and its credibility depends on efficient delivery. Failing to keep track and inefficiency in the delivery of any package can impact FedEx’s credibility, customer loyalty and in long run its sustainability. FedEx information system has been developed and implemented to aid the company’s business units and activities. This system the company has established has changed the way courier service it once used to deliver. With its information system and information highway FedEx is able to effectively and efficiently track each individual package that travels through its global network.
Economics Economic conditions can affect businesses in many ways. The basic concept of economics is how a country takes it resources, makes something, and distributes it to others for consumption. Global economics and politics play a vital role in today’s market because so many companies participate in free trade. It is very important to stay informed of global and national economics to be competitive (Nickels, 2012, p.30). Business is not only for the business owner, it also contributes to the economic growth of the community in which it operates.
To refute this argument, they have to involve themselves into solving social needs of the host country, and this is called Corporate Social Responsibility. Social responsibility and ethical behaviors is some of the key factors that the international managers have to keep in consideration while operating in host countries. This is importance as Global interdependence has increased and without this managing independently will not occur in MNC. However in recent times, violations against human rights, environmental and business misconducts issues have been attached with the company. These issues have originated in Columbia, India and Mexico.
However, IKEA defies this logic and this paper will show how IKEA is very concerned with social corporate responsibility to make a profit while still maintaining excellent ethical standards that go above and beyond the legal requirements. IKEA as a corporation seems to believe in the triple-E bottom line. The triple-E bottom is an evaluation of a corporation’s economic, ethical and environmental value that corporation brings to the global marketplace (Sexty, 2008). IKEA does this through its annual sustainability reports, as well as the strategic way it designs its business practices through a structured supply chain. IKEA is an example of integrated corporate social responsibility this is an impressive feat as IKEA is a privately held company.
But the new opportunities presented with the agreement would be a true test for UPS and how they would handle the pressure from FedEx. Both FedEx and UPS' profits depend on the strength of the U.S. and world economies because economic health is a key determinant of package volumes. Package volumes and economic strength are so tightly correlated that economists will probably study package volume data from companies like FedEx or UPS as an indicator of whether economic activity is slowing or heating up. Increased international trade in finished goods translates into more packages shipped longer distances. But the potential benefits of international trade for FedEx and UPS are not limited to growth in the parcel carrier
Many ethical issues may arise when conducting international business. Some of these issues can be, but are not limited to child labor and biopiracy (Author). There have been numerous reports in the news of US companies outsourcing their labor to countries who use children to manufacture their products. Though this may be ethically acceptable in these countries in the US, it is unacceptable. The conflict arises when a US company does business with these countries and the citizens of the US find out.