How Has Globalization Affected Corporate Strategy in the 21st Century?
How Has Globalization Affected Corporate Strategy in the 21st Century International Business Strategy Siobhan Connell In the last 21 years the notion of a multinational company has changed significantly. This is best demonstrated by the 1973 United Nations definition, which clearly stated an enterprise is multinational if it "controls assets, factories, mines, sales offices, and the like in two or more countries" (Bartlett, Ghoshal 2000 p.3). As we know a multinational corporation is much more then just that it controls foreign assets, it must also have a substantial direct investment in foreign countries, as well as engaging in some form of management of these foreign assets. The evolution of corporations over this time has been somewhat difficult and by no means is the process of change finalized. As with most things this evolution and learning process could be seen as being life long. The environment in which we operate clearly evolves each year and to stay ahead businesses are now required to stay ahead of developments to compete. Some of the slower players, such as Phillips (Bartlett 1999) merely lost market share through this evolution, others in the past and perhaps in the future will lose their businesses. To understand the importance of multinational corporations in relation to the world economy we see that they account for over 40 percent of the worlds
Why are Unions set up?
Unions Why Unions? "Unions are groups of working people who join to talk to employers about wages and conditions of work instead of workers talking to employers on an individual basis."1 Because they speak for everybody, unions can get a better deal for each worker than one employee could by negotiating with the employer. As seen in the short movie "WHY UNIONS?", non-unionized workers talks about the unfair treatment they experience in the work place. Through collective action, workers formed unions so they could have a voice in deciding wages, hours, working conditions and dealing with the many problems arises in the workplace. Unions are not just organizations trying to get more dollars and cents or better working conditions for people who hold union cards. People who don't enjoy the benefits of union protection get benefits too. "The labour movement was in the forefront of the struggles for public health care, for public education, for minimum wages, holidays and employment conditions."2 1 D. Martin, Form War To Peace, Canadian Labour Congress, Quebec, 991, P.17 2 Notes On Unions, Canadian Labour Congress, Quebec, 1992, P.1 Union Nowadays "Unions are like businesses: their success depends upon attracting and retaining buyers (new members). Recently, one of the major problems faced by the union movement is that few Canadians understand what
Gianina Hospedales
The now developed countries were never underdeveloped although they may have been undeveloped. Discuss What is development? Development is economic independence from foreign powers. Countries such as the United States and The United Kingdom can be considered as 'developed' countries. The most important obstacle to development is political: Governments believe that they could manage economic development better than the free market. Most Third World countries for e.g. the Caribbean, lack investment capital. Private entrepreneurs prefer to invest in safer markets of the West than in their own countries. According to Andre Gunder Frank, "Third world countries may be undeveloped at the start, but they have never been underdeveloped at the start. They were undeveloped in comparison with developed, but they were never underdeveloped. They were created into underdevelopment." Today's 'underdeveloped' countries are faced with a world economy dominated by the developed capitalist countries. This must affect their development. According to Frank, the only thing that drives the international capitalist system is the search of profit, and this is pursued at the cost of everything else. Third World countries are over dependent on one or two primary products for example; basically all countries in the Caribbean depend on advanced industrialized countries for electronic products such as
In this report, I will be addressing the implications of the European monetary union and the problems Zeus will have in developing their market in Europe.
In this report, I will be addressing the implications of the European monetary union and the problems Zeus will have in developing their market in Europe. The UK and EMU When the UK decided not to join the European monetary union (EMU) in 1999, it affected UK businesses, especially those who trade within the EU. Does it matter whether sterling is in or out? For many UK Businesses, trading within the EU has become more competitive. After the introduction of the Euro, an Italian company for example, competing for a German companies business could cut 3% of costs due to their common currency, making it harder for UK business to compete. Currently UK businesses are paying £3bn per year in exchange rates, which hit small firms like Zeus the hardest. Advantages By joining the single currency, British businesses will benefit from a fixed exchange rate allowing businesses to plan and budget for future activities more accurately. Fixed exchange rates will deliver stability and increase confidence that will lead to more investment and jobs. By staying out of the Euro Britain will be at a disadvantage to competitors in the Eurozone who already trade with each other using the same currency. The development of free trade has contributed enormously to the economic prosperity across the EU, with the strong position of the wealthier nations and helping to bring the poorer
How successful were Peel's economic and financial policies during 1841-1846?
How successful were Peel's economic and financial policies during 1841-1846? On examining the period of 1841 and 1846 we can assume with regards to Peel's notoriety as "Prosperity Peel" that this was an effect derived from his successful economic and financial reforms. We will discover that these policies appear to act as the foundation for Britain's prosperous years in the 1850s and 1860s. Nevertheless, we will also determine whether or not these policies were truly successful, or in hindsight question whether they should take responsibility for Britain's economic decline at the end of the nineteenth century and beginning of the twentieth century. After winning the 1841 General Election upon the assumption that he would maintain the Corn Laws, he imposed a doctrine of free trade which originated from his opponents. The Whig Report of the Select Committee on Import Duties (1840) recognized the need for tariff reform. Peel believed that free trade would importantly increase the countries prosperity as the financial circumstances were desperate at the time of 1841 when Peel became Prime Minister. Peel's reduction of duties made prices cheaper and increased sales, this would later lead to a further division within the Tory Party, which becomes a unrelenting battle. This significantly acknowledges that Peel's economic policies contest the established principles of the
What is meant by the problem of ' international debt'? Discuss the main policies that a country can use to reduce the problem of international indebtedness (i) in the short run and (ii) in the long run.
Economics Essay 2) a) What is meant by the problem of ' international debt'? (6 marks) b) Discuss the main policies that a country can use to reduce the problem of international indebtedness (i) in the short run and (ii) in the long run (7 marks + 7 marks) a) The Balance of Payment account shows all monetary transactions between our country and the rest of the world over a period of time. It is made up of the current account (trade in goods and services), capital account (Investments, Saving, Borrowing) and the balancing item, which represents the total of all errors and omissions from the above values, which are estimates. When a country spends more than it earns i.e. it imports more than it exports (Current account), or it saves and invests more abroad than other countries save and invest in that country (Capital account), it is said that the country has a current account deficit and a capital account deficit respectively. The country facing a BOP deficit must take actions to rectify it. It usually borrows money from other countries or international financial institutions. The accumulation of debt from loaning from abroad because of a recurring BOP deficit is known as international debt. International debt developed into a problem for many developing countries, Third world countries, which are the poorer countries of the world. These are countries in Africa, Asia
Promoting growth and fighting poverty should be the priority in the developing world, not reducing greenhouse gases do you agree?
Transfer-Encoding: chunked “Promoting growth and fighting poverty should be the priority in the developing world, not reducing greenhouse gases” do you agree? Poverty is not just having not being malnourished or not having enough food, clothing or shelter. It is more about living in an environment with inadequate income and resources, where standard of living in a society and economic growth is precluded. It is a huge threat to our society just like greenhouse gases are. Greenhouse gases are gases like carbon dioxide and carbon monoxide which are emitted by human activities in order to generate energy and electricity through bringing fossil fuels. The emission of these gases causes them to absorb infrared radiation from ultraviolet radiation from the sun in the stratosphere and this causes energy to be released and reflected back to the earth causing it to warm up also known as the greenhouse effect. Greenhouse gases are not just a problem to our health but to our economy too. However should we really try to reduce greenhouse gases instead of focusing on fighting poverty in order to promote growth? We live in the 21st century which is a modern era, where the world is developing at faster speed than ever before and new inventions and technologies are being made every day to increase our standard of living. However there is still one problem that remains unresolved,
Globalization Questionnaire
Case Study: The Politics of Trade in Steel . Do you believe the Bush administration was correct in imposing tariffs in March 2002 on a wide range of steel imports? At the time President Bush decided to impose temporary tariffs on steel imports, 16 steel manufacturers were operating under bankruptcy and a total of 30 had declared bankruptcy over the prior few years (Hill, 2004). U.S. steel producers were losing market share to foreign steelmakers in large part due to subsidies and other trade issues. Bush and his Cabinet chose to implement the tariffs because of "the need to speed up negotiations to reduce the world's huge overcapacity in steel production," (Business Week, 2002, ¶ 5). The tariffs were the largest trade-protection grant since President Regan had taken similar steps to shore up the steel industry. President Clinton had ordered a study that was done in 2000 with the resulting information "the U.S. [steel] industry was the victim of foreign subsidies and other unfair trade practices," (Business Week, 2002, ¶7) . Commerce Secretary Donald L. Evans noted that tariffs were needed in order to manage Europe, South Korea and Japan, who were the worst in regard to excess capacity. Conversely, White House Economic Adviser, Lawrence B. Lindley, cautioned that raising tariffs would only make U.S. manufacturers less competitive because it would raise prices, and Secretary
'All countries gain from trade'. What is the basis of this orthodox economics conclusion? Do you agree? Why or why not?
Nikolai Rovneiko ECOI0008 Modern World Economy I Wednesday, 28 November 2001 Word Count: 977 'All countries gain from trade'. What is the basis of this orthodox economics conclusion? Do you agree? Why or why not? To fully understand this concept it if first necessary to find out where it came from. The main economic theory behind this argument is that of comparative advantage. It is also necessary to understand the absolute advantage theory. Both Adam Smith brought these theories forward but David Ricardo developed them in the early part of the 19th century to better fit the modern world. In this essay I will try to show how countries benefit from trade and why sometimes trade is not advantageous. The absolute advantage theory can be illustrated using the following example. Hours/unit Bulgaria Morocco Watches 0 200 Phone 300 50 We must assume that each country has 6000 hours of labour and that they divide this labour equally between the two goods. So the production of goods for the two countries looks like this: Units Bulgaria Morocco Watches 300 5 Phone 0 60 It can be seen that the world production of watches and phones is 310 and 70 respectively. If both countries only produce the good they have an absolute advantage in i.e. Bulgaria produces watches and Morocco phones, then the world output increases to 600 watches and 120 phones. Thus if the
Critically discuss the role and importance of international commercial arbitration as an alternative dispute settlement mechanism in international trade today.
Question 11. Critically discuss the role and importance of international commercial arbitration as an alternative dispute settlement mechanism in international trade today. Introduction: In recent years, alternative dispute resolution, or ADR, has experienced an increasing popularity, no doubt as a result of dissatisfaction with the high costs and devastating effects of litigation. ADR includes such diverse procedures, such as non-binding mediation and the summary jury trial. But the most common form of ADR is arbitration. (WWW.BUSINESSWEEKONLINE.COM) Commercial arbitration has been going through an incredible growth over the past decades. (WWW.FINDLAW.COM) The development of international and domestic business operations in the last century relates to the increasing requirement of arbitration as a way of dispute settlement. Consequently, it has become a prominent feature of both domestic and international business transactions. As business globalizes, successful presentation or defense of international arbitration claims will become increasingly critical to company's litigation strategy. International arbitration is a good option if a party is not familiar with the court system of the country in which the dispute may be heard. Even if A party is successful in obtaining a judgment in a foreign country through litigation, there may be still be uncertainty about its
