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Importance of globalization to international business
Importance of globalization to international business
Importance of globalization to international business
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International Business & Economic overview at mid-year of 2014 Preface International business is the activity of business among countries that mostly seeks for exporting and importing goods or services and other cross-border transactions. International business in terms of interstate relationships, whether bilateral or multilateral have been conducted since the beginning of the growth of world businesses. The government by their privileges and authority managing the administration and state the rules & policy to conduct and control this International Business activities. At the present, the barriers among Enterprises for establishing the business and go overseas seem to be disappearing, since the figure of world demand keeps increasing. In this case, the activity of exporting and importing among countries certainly important in order to fulfil the demand of the public. The increasing number of the population that had doubled since 19th century leads to the increase of world demand gradually. Recently reported that the population of the world reaches 7.023 billion people. With such big figure, there would be problems of scarcity to face. In this big opportunity, a business should concern to innovate, expand the market and compete among other businesses. World Business in 2014 We are now approaching the half of this year. There are scores of surprising predictions from experts regarding this year’s economic and business condition. According to the economists, the world economy is predicted to be more thrive than last year, the economic condition of the U.S. was also estimated to increase 3% and significant increase in the trade sector. This prediction may bring benefits for developing countries like Indonesia in the trade sec... ... middle of paper ... ...ir intention to build the FDIs in Karawang, West Java. The company will support the construction with US$ 174 million. From the investment, PMID expects to increase the capacity to produce Marlboro for domestic market and international market. To facilitate their ambitions, PMID will invest US$ 96 million. In 2012, the number of export of the product and the Sampoerna tobacco Philip Morris reached U.S. $ 24 million. It is expected that exports will increase by at least doubled in 2013, since the improvement of the producing capacity to produce more product. In response to Philip Morris investment, Secretary of the National Economic Council (DEN) Aviliani appreciate every step of investors who see Indonesia has a good chance to conduct business. "Definitely Indonesia is a good chance there is no other alternatives Indonesian Market incredible," said Aviliani.
Table 1 (see appendix) shows the 10 main principal imports and exports of Australia with Indonesia for the year 201...
Business Analysis Introduction: - Barilla has encountered many areas of their manufacturing and distribution processes that, for many reasons, could be vastly improved. To try to improve these areas, top logistics management decided to try to implement a JITD (just in time distribution) system, similar to VMI (vendor managed inventory). The management felt that they could cut back on problems such as wild demand swings and stock outs by using this method. Their distributors also felt a great deal of pressure to increase their inventory to prevent these stock outs while also ADDING items that they did not already carry, which would lead to even more inventory. Many employees in the logistics department thought the distributors should carry more inventory to deal with the stock outs but other knew the current inventory was already too much.
Philip Morris International focuses on providing high-quality products. The firm is known for selling some of the best tobacco products in the world. PMI earned a score of -1 on the Product Quality factor. Having the highest revenue and profit of the top tier transnational firms (this excludes CNTC who sells nearly all of their products in China), a score of -1 is given to PMI on the Market Share factor. The Brand and Image factor is scored as -1 since the Marlboro brand is one of the most recognizable brands in the world and Philip Morris is the most recognizable company of "The Big Five". PMI also earned a -1 on the Customer Loyalty factor as customers are satisfied with the product quality, consistency, safety and, ultimately, are loyal to the PMI brand they smoke. The slowing of revenue growth and the age of the
Domestic Business: Is the one that acquires all of its resources and sells all of
When it comes to doing business internationally the decision making is more complex. There are many interactions between each country that need to be addressed. In order for a business to be successful in the international market they need to examine and analyze all the facets of their company. They need
An additional option would be to increase efficiency in operations. This could mean layoffs, sourcing less expensive raw materials for cigarette manufacturing, and closing redundant factories if consumption volumes drop. While none of these strategies are attractive for PMI, and at this time likely not justified as operating income remains steady, the decline of this market plus PMI’s high percent of operating income that come from this region mean some defensive strategies should be considered.
15. Hill, Charles W.L. International Business: Competing in the Global Marketplace. New York : McGraw-Hill, 2007.
Woznick, A., & United States (2000). A basic guide to exporting. Novato, CA: World Trade Press.
Chennai is currently the largest electronics hardware exporter in India, accounting for 45 per cent of the total exports in 2010-11. Telecom giants Ericsson and Alcatel-Lucent, Pharmaceuticals giant Pfizer and chemicals giant Dow Chemicals have research and development facilities in Chennai. The TICEL Bio-tech Park at Taramani and Golden Jubilee Bio-tech Park at Siruseri houses biotechnology companies and laboratories. Chennai has a stock exchange called the Madras Stock
Illustrating on a broad variety of this study, it researches about the developments in the world economy. With the elements to be mentioned, such strategies contribute to the adaptation of models from the rich countries to the developing countries. That is for the purpose of developing the most efficient in a global market-oriented economy. In the political and economic aspects of Indonesia, as how it can maximize its chances for success, and what exactly is the role of international financial and trade institutions in its development.
In order to satisfy this market needs, a well-rounded plan is needed to distribute the product. It is a perception that has to change internationally and the most appropriate way to approach this issue is indirectly. Through indirect exporting, the other intermediary companies can provide a range of services to include logistics and marketing tailored for that target market, likely making the product familiar, or
Besides that, also important to consider there is 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. Then, Problems encountered in international business larger and more complex than the problems faced in the domestic business. In example, the manager of an international organization decides to reduce costs and maximize the value-added. They must decide whether it is ethical to comply with all labor and environmental standards are found to be lower in less developed countries. In addition, they must decide which one foreign market to enter and should be avoided. The domestic business manager was not affected by this factor directly, but they will be affected by the economic downturn of international trade.
International business contains all business transactions private and governmental, sales, investments, logistics, and transportation that happen between two or more regions, nations and countries beyond their political limits. Generally, private companies undertake such transactions for profit governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of goods, services, resources between two or more nations. Transaction of economic resources includes capital, skills, and people. for international production of physical goods and services such as finance, banking, insurance, and construction.
The main reason for which export business gets so much attention is the incredible rate at which it provides profitability to a brand. The more exports a brand makes, the more it gets to earn and so does the profit. The strength of a firm increases in correspondence to its profit rate.
I found this topic so interesting and motivating and I believe that I got some new knowledge and skills after attended this assignment topic. My experience has been successfully expanded as a result of attending classes, to include global approach to the international business. I found out that practice for international business has become little bit complicated due to influence of globalization.