Globalization is a double-edged sword, smart local companies have used the benefits of globalization to close gaps in technology, capital, and talent with their rivals from the developed world. Local firms act strategically in order to keep the multinational out of the competition, this attempts the local companies to capitalize the local presence & the command over the cultural & economical environment in their home country. In this paper we will try to highlight on the fact that local firms can compete successfully to MNC with close to Kingfisher & Haier as examples. Regional firms are at sword when there is influx of MNC’s into the market, this when taken as a positive element creates a Glocal firm (Lecture-note of Chung L) which is competitive enough in providing international standards with a local touch similar to those of transnational companies. This development was depicted by companies like Haier & Kingfisher in China & India respectively.
They would say that competition is healthy and necessary for economic growth. However, there are many reasons why trade barriers are beneficial and play an important role in international trade. Some of these reasons include being self-sufficient in producing military goods, trying to avoid becoming too specialized in our industries, keeping new industries alive domestically, protecting against foreign competition, and increasing domestic employment while reducing the number of jobs outsourced to other countries because of their cheaper labor
However, production is cheaper if they are made countries where regulations are less strict (Wood 25; Stephanie para 1). Despite the profits made from this technique, it can have some repercussions on the U.S. economy and the environment of nations occupying those factories (Marquis 39; Ahmed 192; Zhang 776). This springs a debate to whether more concern should be held for the outcry of Americans to bring jobs back to the U.S. (Ahmed 192; Stephanie para1) or to the freedoms of the businesses and their right to seek a profit (Salanţă 270). Both sides can agree that outsourcing can be desirable for a business do to the potential profit. It allows goods to be made cheaper, management to run smoother, and money to be made faster (Salanţă 270).
Local content requirements may have favorable effects on the production of the intermediate sector, unemployment, and welfare (Yabuuchi, 2003). The local content requirements allow for local industries to protect their jobs and businesses even with the increased presence of international organisations in the industry. This can allow for strong relationships with international countries allowing for trade efficiency while also attaining local hardworking jobs and businesses. The process of local content requirements can also be used on local industries making sure that they are still using mostly local goods to produce their goods instead of potentially outsourcing most of the production to overseas markets and profiting off potentially unethical business behaviour by exploiting the cheap labour of underdeveloped
Ryoo portrays the Korean wave as an occurrence that South Korea is promoting while other countries are either attempting to slow it’s effects on their media intake or are totally embracing it. The Korean wave is explained in the paper as having such success in neighboring countries due to South Korea’s income levels and the “close cultural proximity and affinity they share with neighboring Asian countries”. However, he also explains that there is a growing sentiment against the Korean Wave with some countries even going as far as considering it cultural imperialism. What is interesting is that South Korea also deals with cultural influx which can be seen in their policy that “limits the number of days per year non-domestic movies can be shown on any one movie screen”. Based on the information provided in the article, it does not seem that South Korea is trying to forcefully enter the cultures of neighboring countries.
The reason is that International trade brings various benefits to both business firms and countries: First of all, International trade boosts development and generates growth by allowing exchanging knowledge, standards, and best practices of skills and techniques globally and using the best that fits well. Moreover, Country’s Shortage and high costs become avoidable. Scarcity in availability of raw materials or expensive labor force in local market is exempted. Obtaining the raw materials at relatively lower price than local market can reduce the cost of doing business. In case of illiquid Local markets clients can benefit by Easy access of acquiring financing by entering into highly li... ... middle of paper ... ... terms and condition which may cause future disputes or Documentation risk • Acknowledge the buyers culture and accept cultural differences to keep friendly based business partner.
If these practices are allowed to continue, we as the consumer, will be paying higher prices at the stores. FAIR TRADE 3 Fair trade practices and legislation Does it really help the markets remain fair? Business in the domestic and global markets have become saturated with competition which laid claim from smaller producers of goods and services; that they were being left out of the markets for the reasons of competing prices. The concept of 'fair trade' was introduced to provide these individuals with a way to compete against the pressures of the big giants of producers of goods and have equal position to sell goods in the markets. This opportunity allows ... ... middle of paper ... ... of remaining fair with a collection of antitrust laws.
Global sourcing often aims to exploit global efficiencies in the delivery of a product or service. These efficiencies include low cost skilled labor, low cost raw material and other economic factors like tax breaks and low trade tariffs. The whole point of global sourcing is to find better sources of supply around the world, offering improved quality and lower prices (Delaney, 2014, p.1). Global sourcing can be beneficial in several other areas for business too, but like any other endeavor, issues can arise and disrupt business if a strategic, well thought out plan is not place. One major problem involved in global sourcing involves the selection of suppliers.
Lastly, the strategy would help the firm remain ahead of the competition by lowering the number of companies in the industry. Although the strategy can bring a lot of benefits to LIDS, it needs to take note of a few shortcomings associated with this option. Firstly, the strategy lacks the necessary due diligence for entering new markets, which may affect LIDS’ successful entry into its target foreign markets. Secondly, this option is a significant financial investment with high political and market risks. However, these faults can be minimized through conducting intens... ... middle of paper ... ...nd expand their markets.
First, let’s take a look of the main advantages of multinational corporations that will offer: • The benefit for consumers: it can be easily notice that the larger the corporation, the better they are to lower the average prices and costs for its consumers. For example: some developed countries like Japan or Korea can offer cheaper car price than developing countries, the same with other technology industry like smart phone, and electronic. • Corporations will create jobs and wealth: after putting their money to invest to foreign markets; of course they will hire the local people to get the advantage from the low labor cost. Wealthy is likely to come to their resident soon