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.
Introduction The current economic environment is very influential on business planning and strategy. Due to economic shifts in the United States, a good strategy for business and services is to keep prices low without compromising quality. The same is true for the tax accounting and the consulting industry. A reduction of prices can be done through careful restructuring of the business to accommodate the slowing economic conditions. By expanding into the market of low cost tax accounting services this firm will be able to remain competitive and profitable.
Fair trade is set in place to make sure the global economy is serving the people. A benefit to being socially responsible is how the public sees you. Most consumers prefer to buy from ethical businesses. Although they need your products, competition allows them to pick in their favor. Not only does being socially responsible give you a better public image, it also will give you better and more media coverage.
In our current economic climate, the Keynesian model of economics is more accurate. Business owners operate their business outside of government control and without much thought to the economic situation. Their goal is to build revenue and raise net worth of their company. With this being said, prices are in fact “sticky”. Even though the prices will lower of time, companies will take advantage of the recession, knowing that consumers still require their goods, no matter if it falls outside their budget or not.
These include careful selection of markets to do business with, negoations for regional and global free trade, becoming acquired by a foreign firm to gain access to resource rich markets and also business strive to become national champions in their own markets. These issues will be looked at from positive and negative perspectives for both emerging markets and developed markets. The new trends of globalization are a by-product from the rise of emerging markets ability to challenge western societies dominance of the global capital flows (Bremmer 2009). As a result of large export quantities, multinational corporations have exploited emerging markets cheap labor and resources, these emerging countries have created huge financial reserves that help the state government support their investment opportunities and help manage state assets (Bremmer 2009) such as China’s $2.6 trillion foreign exchange reserves has allowed them to produce the worlds largest polysilicon markers, GCL-Poly Energy Holding Ltd, a raw material previously sourced from a foreign company, however now controls a quarter of the worlds polysilicon(Dean & Oster 2010). This capital held by the state gives political
TNCs, firms that are able to coordinate and control processes and transactions within production networks, serve as the main driving force behind economic globalization we witness today. While the direction of economic globalization today seems to reflect the ideal - continuing expansion and mutual integration of market frontiers, the capitalistic and profit driven nature of TNCs have brought along its own share of problems. The costs of globalization are magnified in LDCs but the benefits brought along has helpe Economic globalization today is often synonymous with the creation of a greater primary industry in LDCs. TNCs tend to outsource labor-intensive jobs such as manufacturing and assembly to LDCs to reduce labor costs and maximize profits, tapping on comparative advantage at the same time. While the creation of jobs would greatly ease the unemployment problem and combat poverty effectively, the issue on exploitation of the workforce, particularly women should be considered.
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.
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
IKEA is known for its affordable furniture and products that are invaluable to people on a budget. However, in the context of international business it is assumed that major corporations providing low cost goods do it through the exploitation of people. There have been numerous cases that have been well documented including Wal-Mart, Nike and even Disney (Hansen, 2005). So in most cases it is just the human cost of doing business in order to have a cost leadership strategy when selling products. 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.
Activity based costing (ABC) is a dynamic method to determine the costs by assigning them to the major activities performed in an organization. ABC is a powerful tool for organizations to have accurate and effective cost to avoid the misrepresentation of the product’s cost, which can lead to sustainable development and growth required to be competitive in the era of globalization and complex business environment. In today’s global marketplace, firms are facing ever-increasing competition among them. Companies must react rapidly and manufacture low cost, high quality products to be successful in this new environment. Senior managers must have accurate and up-to date costing information to make proper decisions.