Globalization

Globalization describes the process by which regional economies, societies, and cultures have become integrated through a global network of communication, transportation, and trade. ” (Globalization, 2010). Nowadays, small business has to compete against multinational companies face to face as globalization becomes an irreversible momentum. In some case, small business have no need to against the large companies because they focus on different scale until the small companies grow up.

However, I agree that small business in IT industries cannot compete against multinational companies when small companies become threats to the lager ones. In this essay, I will explain why small business still exist today and compare their advantages to multinational companies in the sector of financial strengths and productivity advantages. Small business still exists now because they have unique features, especially they focus on the lower market. It is no need for them to compete against the multinational companies Sometimes. Hey sever the specific communities. Such as they are willing to run their small business in some small illegal and remote area where multinational firms do not pay attention to. Enclave, K. (2002) argued that small business have to overcome these rules: “… Information technology (IT) powerless crowd out product development Initiatives… ” It Is clearly that overcoming these sales abstract is difficult but not impossible. Small business has its own advantages because it can use convenient and easy solutions to common business problems.

However, low price is the most popular strategy for small business to make profits and attract customers’ attention. Small business spends less none on advanced Invention. Comparing Dell Company mentioned by Enclave (2002) that if they want to enlarge their popularity they have prepackaged solutions to meet unique buyer’s need. They set up specific system to solve these problems to keep In touch with their customers. As a result, they have to Invest more money to the stuff. In order to maintain their cost, they have to raise the selling price. That Is the major reason why small business can exist at present.

But after small companies changes into large ones, multinational firms consider those companies as a threat, in order to hold their markets share, which will acquire or knock down small business before they growth. Multinational corporations have financial strength support them to enlarge their market share. As a result, it is relatively easy for them to meet the customers’ need and enhance their reputation. Large companies are willing to spend money on observations about what people really need and want to buy. They invest amount of money In advertising their products.

For example, IBM personal computer business was acquired by Chinese famous personal computer brand Leno, and hen, spend almost one million hired Chinese famous movie star Jingle Xx as their spokeswomen. Not only this, Leno company invest large deal of money to sponsor many activities on television and radio to enhance its popularity. As for small business, they will be asked for achieve their customers’ need and have large fund to broaden kinds of products claimed by Enclave (2002). Preston (2010) cited 1 OFF than what you have. ” It seems hard for small business to follow multinational companies.

Small business have tight budget and less popular than large firms, asking over large companies market stocks is difficult for it. Small companies can still exist because of the scale they were chosen. Sheldon small firms are held in CAB, they chose to serve the limited people instead of making less money because much more large companies in there. Small business avoid compete against large firms directly. Multinationals companies have high productivity benefit from their advanced technology. High technology helps those firms make high profits and also help themselves a lot. The productivity advantage of foreign-owned firms is usually en as reflecting multinationals’ technological advantage visa–visa domestic firms. ” (Marksmen, 2002 cited by Grammar & G¶erg, 2007). However, advanced technology plays vital role in processing high productivity. Consumers are more willing to pay more to buy those high quality productions, they believe this goods produced by large companies have quality assurance. Another example to support this argument is by Preston (2010) whose study compares the strategic IT companies in the world.

He shows that IBM as a technology provider, grabbing consumer market by its innovation product named Smarter Planet. Some software companies in small scale sell some cheaper goods to make profit, but these products cannot run well in the long term. Consequently, people always spend a lot to repair them. Then, fewer people will purchase their products because of lacking of guarantee. It leads themselves face the big problem that bankruptcy or acquired by large firms. Grammar (2007) quotes Balk (2001) who stated that different roles in different kinds of economies play various roles for productivity growth.

To conclude, Multinational reparations have financial strength support them to enlarge their market share. For instance, improving popularity through advertisement and getting high productivity because of their advanced technology. In some cases, small business has no need to fight against multinational companies as they are focus on different market. When small business growing up, they would be take into consideration by large companies because those firms will reduce their market share. Whether small business should compete against multinational ones or not depend on what market they focus on.

The mission was carried out successfully and I was on my way back to earth with my friends. Suddenly, an unidentified flying object appeared and it somehow forced our spacecraft to land on another planet. On the planet, a very strange looking creature met us. This creature took my crew and me to see its master. I saw another alien sitting on a very high throne. That must be their master. It wore a crown and looked like all the strange looking creatures in the room but its head was very much bigger.

All the aliens had four eyes, two heads and six legs. They had a white body and no hair. The strange unknown planet looked like a prison, no worst … a dungeon. There was a very high wall all around the planet. It had many buildings and everywhere you went, you could hear the wailing sounds coming from small cells. We were scared but they gave us some food, which smelt like rotten fish. The smell was so strong that we had to hold our breath in order not to faint. No one dared to touch the food.

The next day, we were given a long list of things to do but they were in a language that we could not understand at all. They whipped us and put us in a small cell. After that, they conducted experiments on us. A few of us died but the rest of us who survived were put back into the cell. One day, the aliens who brought us to our cell forgot to lock the door so we escaped through the door. Soon we boarded our own spaceship and flew back to earth. We had a horrifying experience but no one believed us! After this, I never dared to go into space ever again.

Like any other business Virgin Atlantic has aims and objectives. Virgin Atlantic has many long term goals. Their long term goal or aim is to provide their passengers with a seamless travel experience from the time of booking all the way through to them disembarking at their destination. This means VirginAtlantic. com will be a one stop shop for all their passengers needs. Virgin Atlantic also have another aim which they wish to achieve this is to provide the highest quality innovative service at excellent value for money for all classes of air travelers.

They also have many objectives that will help them reach their final aim. Their objectives involve profitability, return on investment, competitive position, employee relations, employee development. They also use the current objective: to maintain a safe customer environment through the necessary security procedures, also to concentrate on core competencies by consolidating routes, directly related to downsizing workforce, to remain profitable while targeting business class passengers. Virgin Atlantic’s mission statement is to grow a profitable airline, that people love to fly and where people love to work.

Their mission statement can also be one of their aims, as like any big business they want to make a profit to keep their shareholders happy so they will still invest and therefore they can still expand. This meaning that they could then expand to improve their customer service so that they are the best or try to improve routes and expand existing routes and target markets the last time that Virgin Atlantic expanded was back in 1998 when it opened its clubhouse in the airport at Gatwick.

This is all related back to the aims and objects as well as the smart target. Virgin Atlantic also has created a SMART target. This is S work to inspire customers about the subject of climate change to help them understand what they can do. M to reduce by at least one tone of weight from each aircraft alone by the end of 2010 A to burn around 27% less fuel a year R reduce their energy consumption by 10% by the end of 2020

T to ensure that 50% of all waste from office and aircraft is reduced and will go to landfill by 2012 Virgin Atlantic like any other big business will want to measure their success. Virgin Atlantic measures their success by doing ad tracking and they used econometrics. This is a special agency which tracks data and then calculated the effect of their adverts against their revenue and then told them their return on investment.

They also measure their success by hoe many ad searches they have had and to date they have had approximately 700,000 + on Google and more than 100,000 hits on their website and when their TV ad was launched the virgin name then increased by 500% and as a result of this their rating of Virgin Atlantic as an airline for business and leisure is now the highest it has ever been. This graph shows their total profit up to 2001. This shows how many passengers they have carried round the world to various destinations.

According to the Slow swan model, economic growth can be attributed to three variables. Population growth, savings (capital) and technology. Therefore according to theory we know that higher saving rates leads to growth but only temporarily. So the actual growth and persistence rise in living standard is achieved only by technological process. Thus, technological improvement is vital for economic growth. One of the major methods of increasing technology is by foreign direct investment. A company can invest overseas if it sees there is enough opportunity. Read about comparison export promotion vs import substitution

Thus when a firm directly invests in production or other facilities in a foreign country, and maintains effective control of said investment. Foreign firm need to invest in country other than home country because they see ample opportunity in host country. The host country also benefits from FED. A developing country generally lacks capital, technology and human resource as well. Thus any increase in capital and technology transfer will increase the consumption and economic wellbeing of the host nation. The investing firm will bring improved technology and skilled manpower. This will improve the host nation.

International Monetary Fund (MIFF) guidelines consider an investment to be a foreign direct investment if it accounts for at least 10 percent of the foreign firm’s voting stock of shares. However, many countries set a higher threshold because 10 percent is often not enough to establish effective management control of a company or demonstrate an investor’s lasting interest. There is a widespread belief among policymakers that foreign direct investment (FED) enhances the productivity of host countries and promotes economic development.

This belief stems from the fact that FED not only provides direct capital financing but also creates positive externalities via the adoption of foreign technology and know- how. Foreign direct investment also helps in creating new Job in the host nation. When foreign investors invests in host nation they generally require new people in the host country to bring about the operation. Thus any new investment is bound to create the employment opportunity. Similarly any inflow of capital also helps in balance of payment, foreign currency flow inward in the economy which helps the economy as a whole.

The other benefits of FED are Technology Transfers Inflows of foreign capital into the country Helps in the transition to prevarication (when state owned firms are sold to foreign investors) Improves the countries’ infrastructures Brings foreign executives into the country with sufficient knowledge of macroeconomic global and local situations Forms of FED Purchase of assets FED and economic growth By Purity-Sahara because of existing business, local financing may be possible, eliminate competitor.

New investment When no local entity is available for sale, new investment is done to harness the existing opportunity. There is no inherited problems but the company may face long dead time to generation of sales. International Joint-venture In this type of investment there is shared ownership with local and/or other non-local partner and the risk are shared. In Nepal In Nepal foreign investors used to shy away from investing in the past due to various risks associated with such projects resulting from long gestation and pay back periods.

FED is an instrument for the transfer of technology from the technology-rich countries to technology-deficient countries. Similarly, leadership and managerial skills transferred by foreign investors and eventual expansion of local knowledge and kill base, whether at the enterprise level or at the sectarian level, are considered yet another spillover impact of foreign investment. The business community in Nepal are seeking greater flexibility towards foreign direct investment since long time.

The government has also given some freedom to foreign investment in Nepal, but it seems not enough has been done yet. Most of the advocates argue that being in the middle of two developing Asian giants, Nepal can capture the advantages of both nation by being neutral ground for trade with both parties. But this has not realized yet. Similar, theoretically, Nepal has huge potential for hydrophone but due to the government reluctance of giving the hydro projects to the foreign investor, this potential is also not being realized and is going in to vein and the nations power woes continues.

The first thing the government can do to attract FED is to get economic and political stability in the nation. Without stability no one would want to risk huge sums of money in volatile nation. Other thing that need to be done is to start substantial economic projects with in the county by home investors. Investing huge sums of none on projects will help in getting the investors’ confidence and overtime they will invest in Nepal.

We need FED (especially from India) to undo the constraints to Export Promotion, Import Substitution and Freedom to set Interest Rates arising from the fixed exchange regime. FED is also needed to develop our townships and cities as local and regional centers of modernization and social change and to create a bigger middle class much faster. So that we can depend and sustain our pluralistic democracy with much higher per capita income. Thus one thing is what is well known s that foreign direct investment is essential element when it comes to the growth of a nation.

No country can achieve a growth without help from foreign investors as it will need capital to produce output. Thus foreign direct investment should be encouraged in Nepal and policy which will help in getting the foreign investors need it be clearly and properly devised.

Sources

1. http://www. Undermined. Com/facts/Nepal/foreign-direct-investment
2. http:// www. Investments. Gob. NP/portal/index. PH? Up=content&p2=9#. Pseudonym-LLC
3. http:// http://www. Slideshows. Net/Lordship/fed-economic-growth

The impact on global business is now widely recognized and generally assumed to be inevitable because of the increasing scope of trade. Corporations adapt research, production, marketing and service strategies in an effort to “think global, act local” (Kline, 2005, p. 1). National governments have come to accept growing constraints on their sovereign scope for unilateral action even as they maneuver for competitive gains from global commerce. These changes supply both the building blocks and much of the driving force behind the emergence of “globalization” as a contemporary phenomenon.

 When operating internationally, a company should consider its mission (what it will seek to do and become over the long term), its objectives (specific performance targets to fulfill its mission), and strategy (the means to fulfill its objectives). Daniels, Radebaugh & Sullivan (2004) suggested that the three major operating objectives that may induce companies to engage in international business. They are

• To expand sales.
• To acquire resources.
• To minimize risk.

With the globalization of business, the issue of global ethics had become vital because “[g]lobal ethics emerge from the degree of agreement among societies, corporations and other organizations regarding the appropriate ethical frameworks and behaviors in a given situation” (Buller, Kohls & Anderson ,1991). Furthermore, Buller, Kohls & Anderson (1991) had explained that global business ethics take into account both moral attitudes and moral reasoning. However, the relationship between these two elements is unclear. How do reasons and attitudes diffuse in the development of a global business ethics? Recent studies in business ethics have shown both remarkable similarities and differences across cultures with respect to attitudes toward questionable business practices. During the decades of the 1980s and 1990s business ethics was predominately a subject taught at business schools and debated by academics. It had little impact in the international business world, where the prevailing attitude was that anything goes and everyone is paid to cut a deal. Many governments (including France, Japan and Germany), recognizing the reality of doing business in certain parts of the world, actually allowed businesses to write off bribe payments on their corporate income tax (Mitchell 2003, p. 7).

Recently, business leaders and CEOs already have realized the repercussions of not having solid global ethics guidelines. Corporations of all sizes, especially multinationals, are more attuned to the bottom-line value of being a good corporate citizen and playing by the rules. Individual business people are seeking to do “what is right” (though this is often prodded by corporate ethics standards and local laws) rather than maintaining an attitude of “anything to close the deal.” For example, Royal Caribbean Cruise Lines was indicted for criminal violation of the Clean Water Act. The company acquired much costs as it put together an all-star defense team including two former federal prosecutors and two former United States attorneys general to defend itself (Sorkin 2004, p. A1).

 According to Steiner & Steiner (2006), there are strong forces in organizations that could shape ethical behavior within their organizations. Depending on how they are managed, these forces elevate or depress standards of conduct. Four prominent and interrelated forces that shape conduct are leadership, strategies and policies, organization culture, and individual characteristics.

Leadership

The example of company leaders is perhaps the strongest influence on integrity. Not only do leaders set formal rules, but by their example they can reinforce or undermine right behavior. Subordinates are keen observers and quickly notice if standards are, in practice, upheld or evaded. Exemplary behavior is a powerful tool available to all managers.However, a common failing is for managers to show by their actions that ethical duties may be compromised. For example, when managers give themselves expensive perks, they display an irreverence for the stewardship of money that rightly belongs to investors as owners, not to management. Betsy Bernard, president of AT&T had described how arrogant behavior sends the wrong signals:

Too often through my career I’ve been at management dinners—no customers—and I see $600 bottles of wine being ordered. Think about the message that sends out through the whole organization. And don’t ever think such attitudes don’t spread and infect the whole firm. Leadership, after all, is about communicating values. And deeds trump words any day. The message in that bottle is this: Some sales representative and a couple of technicians, supported by others, busted their butts to get that $600 to the bottom line. And their work, as evaluated by the guy who bought the wine, was worth a couple of tasty swallows.

If money is the way we keep track of the good things our employees accomplish for our customers, then who do we think we are spilling it? (Bernard 2002, p. 155). Also, many employees are prone to cynicism. Diverting blame for mistakes, breaking small promises, showing favoritism, and diversion of even trivial company resources for personal use are ill-advised—because if the leader does it, an opportunistic employee can rationalize his or her entitlement to do it also.

Strategies and Policies

Another critical function of managers is to create strong competitive strategies that enable the company to meet financial goals without encouraging ethical compromise. In companies that aim for global trade, managers have great difficulty meeting performance targets and may feel pressure to compromise ethical standards. Even excellent overall strategies need to be carried out with policies that support honest achievement. Unrealistic performance goals can pressure those who must make them work. Also, reward and compensation systems can also expose employees to ethical compromises. When companies adopt policies that put employees under pressure, they should build in strong ethical rules too. Otherwise, the repetitive message to achieve profit goals drowns out the principles in the ethics code framed on the wall.

Corporate Culture

Corporate culture is defined to be “a set of values, norms, rituals, formal rules, and physical artifacts that characterize a company” (Steiner ; Steiner, 2006). Every corporate culture has an ethical dimension reinforced not primarily by formal policies but by daily habit and shared beliefs about which behaviors are rewarded and which are penalized. One factor that contributes to lowered ethical climates in corporations is the inability to raise and discuss ethical issues between managers. At one oil company, an employee requested time to raise an ethical problem during a meeting of division presidents. They refused saying, “If he wants to talk ethics, let him talk to a priest or a psychiatrist.” This phenomenon, which was studied by Bird and Waters and labeled “moral muteness,” is widespread. In their study, Bird and Waters (1989) found that “managers seldom discuss with their colleagues the ethical problems they routinely encounter.” Indeed, of 300 cases of ethical issues their interviews uncovered, only 12 percent were ever openly discussed (Steiner ; Steiner, 2006). There are reasons for this restraint. Some managers think that verbalizing an ethical judgment is confrontational; it involves placing blame and creates anger or grudges. In organizations where formal standards are not followed and deceit is rewarded, ethical arguments lack legitimacy or force. In addition, many managers have a rich vocabulary and logic for parsing business issues but lack these assets in the moral realm. Thus, they tend to reframe ethical issues as business matters. For example, if someone lays out a deceitful ad in a meeting, others will not accuse the person of dishonesty. Instead, they will discuss possible sales and revenue losses if the misrepresentation is discovered—even if their primary motive for opposing the ad is a desire to be honest. This tendency toward moral muteness is probably present to some degree in every company.

Individual Characteristics

Individual behavior is motivated by a mixture of internal disposition and situational incentives. In a corporation with a dreary ethical climate, corrupt leaders, and high pressure to achieve numbers, otherwise honest individuals may be pushed to compromise. However, all things being equal, having employees who are internally disposed to right action is best.

Researchers have tried to discover what personal qualities are associated with ethical behavior. However, strong relationships are elusive. There are indications that higher ethics come with advancing age and longer work experience. Some studies show that women are more ethical than men, but results are mixed. No studies find men to be more ethically sensitive than women, but some show no difference. A few studies suggest that people with more education are more ethical, but others do not. Similarly, some studies find that religious belief leads to more ethical attitudes, but many others fail to discover any relationship. There is considerable evidence that the company environment influences conduct. Individuals seem to act less ethically as corporations increase in size, but they tend to be more ethical where companies have codes of conduct .

Conclusion

The growth of a global political economy facilitates but does not dictate the emergence of a global society and culture. Ethical analysis can assist in examining how globalization affects existing cultures and clarify potential choices regarding whether an evolving world community could or should develop a common global culture. We are living in an era when global managers have become somewhat hailed to high heavens, gracing the covers of news and business magazines and appearing as larger than life icons meant to inspire us lesser mortals to success. Considering historical attitudes towards the ethics of business people, this amounts to a major comeback for the profession of business. Regardless, there are many business analysts who will argue that this celebrity status has actually proven to be a major distraction to many CEOs who are more concerned about their personal image than their company’s bottom-line and long term performance.

Knowing how to work with factors like leadership, strategies and policies, organizational culture, and individual characteristics, managers should base the foundation of their global business ethics policies to work within these areas. However, it is also encouraged that managers explore other factors. Managers can use a range of methods to discourage transgression and encourage high ethics. Likewise, individuals have a range of principles with which to enrich their ethical thinking and powerful methods with which to make ethical decisions. Although all managers face difficult ethical conflicts within their organizations, applying clear guidelines resolves these problems and eventually help their organizations to advance their companies to improve for the better.

References

1. Bird, F.B. and Waters, J.A. (1989, Fall). The Moral Muteness of Managers, California Management Review, p. 74.
2. Buller, P.F., Kohls, J.J. and Anderson, K.S. (1991). The Challenge of Global Ethics. Journal of Business Ethics, 10: 766-75.
3. Daniels, J.D., Radebaugh, L.H. and Sullivan, D.P. (2004). International Business: Environments And Operations, 10th ed. New York: Prentice-Hall-Pearson Education Company.
4. Kline, J. M. (2005). Ethics for International Business: Decision Making in a Global Political Economy. London: Routledge.
5. Mitchell, Charles. (2003). A Short Course in International Business Ethics. Novato, CA, USA: World Trade Press.
6. Sorkin, A.R. (2004, September 9). Ex-Banking Star Given 18 Months for Obstruction. New York Times, p. A1.
7. Steiner, G.A. and Steiner, J.F. (2006). Chapter 7: Business Ethics. Business, Government, and Society: A Managerial Perspective Text and Cases, 11th ed. NJ: The McGraw-Hill Companies, Inc

As globalization has strengthened its root in every country and around the World it is becoming more and more important for different businesses to operate with maximum efficiency and effectiveness. This makes it obvious to have a strong and large customer base to attain larger profits. As the geographical distances vanish due to different drivers of globalization companies have now found ways to expand globally. Global expansion has many benefits apart from the complexities it brings along with it. Companies not only expand to increase their market share but also focus on reducing costs through various strategies.

These strategies can be different for different companies no single strategy is suitable for every organization. We have seen in the past and present that different successful companies have poised themselves with different strategies which have worked for them effectively and efficiently. Every organization tends to have a unique competitive aspect that differentiates them from others. This enables the organization or business to position itself at a unique position in the industry that it belongs to. The same is the case for Starbucks, as they have positioned themselves uniquely from other companies in the industry.? Read about

This company originated from the United States of America in Seattle, Washington. The company is basically an international Coffee and Coffeehouse chain which is the biggest currently present in the World. Starbucks has a total of 16120 stores in a total of 48 countries. The largest share of stores present in United States of America, Canada and Japan. Starbucks has focused greatly on global expansion and have carried it out successfully in most of the global sites they have moved to. In this paper we would examine the global expansion of Starbucks focusing on China.

In 1996 Starbucks opened their first location outside North America which was in Tokyo, Japan. Starbucks bought the United Kingdom based Seattle Coffee Company in 1998 in order to enter the market at that time 60 outlets operated in UK the stores were renamed as Starbucks. By November 2005 Starbucks had become an international brand as the number of outlets in London exceeded that of Manhattan. In April 2003, Starbucks bought Seattle’s Best Coffee and Torrefazione Italia from AFC Enterprises in April 2003 to increase the number of total stores of Starbucks to more than 6400 around the globe.

Four Seasons

During the September of 2006 Diedrich Coffee which was a major competitor of Starbucks also sold most of its company owned stores to Starbucks. This also included the purchasing of the locations of the Oregon based Coffee People chain by Starbucks. All these locations and stores were converted to Starbucks style and renamed Starbucks. Many of the currently operating bookstores in US and UK have Starbucks outlets within them. During the year 2008, Starbucks sustained its growth, expanding to Portugal, Argentina, and Bulgaria. Starbucks plan to open new stores in Hungary, Algeria, Poland and Colombia during 2009.

Starbucks entered China in 1999 right after it entered Japan China is still seen as a place having great growth opportunities by the Starbucks. The have expanded rapidly inside China after entering. Starbucks faces stiff competition by some major competitors in China as it is the country where tea and coffee have a strong bonding with their cultural values. Starbucks have gone in to some major contracts and relationships with partners in China helping them in meeting the standards of Starbucks. Starbucks is currently pursuing an aggressive expansion strategy in China focusing on the 1^st and 2^nd tier cities of China.

The company sees China as one of the major markets after United States of America and does not hesitate in buying local equity to establish firm holds in the country. They see China as a potential market by the fact that the younger generation is adopting the American way of living their lives. Starbucks still has fewer numbers of stores in China as compared to Japan but they see this as an opportunity to grow in China. Starbucks plan to expand their operations in China further as they have only 200 stores operating their which is very less compared to the 600 in Japan. The Chinese population on the other hand likes the coffee that is being sold by Starbucks, and the likeness has given a morale boost to Starbucks for their expansion.

It is simple and very obvious by the facts and figures that Starbucks expansion in China has been slow as compared to their expansion rate in other foreign markets. This is due to the fact that they have faced stiff competition by the local industry players and some cultural extremists, but this does not affect the confidence and morale of Starbucks. Starbucks plan to continue with its slow progress as they see China as a strategically important component of their long term plans. They have diagnosed a change in the living styles of the Chinese population and its direction towards the American way of life which is a positive sign for Starbucks.

Bibliography

Anonymous. Starbucks Calls China Its Top Growth Focus, Wall Street Journal, 2006.

Economist.com/ Global Agenda.The forbidden latte Business view. 2007, p.1.

Financial Times. Starbucks aims for new tier in China Cafes, February 14, 2006

Inkpen A., Ramaswamy K. Global Strategy: Creating and Sustaining Advantage across Borders, Oxford University Press, 2005

Michelli J. The Starbucks Experience: 5 Principles for Turning Ordinary into Extraordinary, McGraw-Hill, 2006.

Reuters. STARBUCKS IN CHINA. September 5, 2007.March 20, 2009. ;lt http://www.nypost.com/seven/09052007/business/starbucks_in_china.htm;gt

Inkpen A., Ramaswamy K. Global Strategy: Creating and Sustaining Advantage across Borders, Oxford University Press,2005

Reuters. STARBUCKS IN CHINA. September 5, 2007.March 20, 2009. ;lt http://www.nypost.com/seven/09052007/business/starbucks_in_china.htm;gt

Economist.com/ Global Agenda.The forbidden latte Business view. 2007, p.1.

Anonymous. Starbucks Calls China Its Top Growth Focus, Wall Street Journal, 2006.

Michelli J. The Starbucks Experience: 5 Principles for Turning Ordinary Into Extraordinary, McGraw-Hill.2006

“,”Company Strategies|Essays on Countries;Essay about China|Companies in an Essay;Essay on Starbucks|Essays on Economics;Globalization essay|Samples”

Globalization The liberal economic theory Is based on the fact that not all state’s territories include the blessing of various natural resources. Therefore, state economies over the years have established several laws that make economic global trade a rather fair transaction. In its core trading was created to facilitate the gaining of products for territories in which producing a specific good might be limited due to their natural resources from those with comparative or absolute advantage.

Economic liberalizes believe that governments should not interfere in the markets, because international elate Is maximized when states practice comparative advantage and specialize in certain products. It makes more sense for a country with easier and cheaper ways to produce a specific product do so in abundance and share it through global trade with the world, rather than it be extremely difficult and costly for a single state to do it alone.

Through foreign direct investment, multinational corporations are able to invest in other countries by establishing their own facilities in foreign territories. This is the base of globalization. Through FED and Mans companies are locating closer to customers and Introducing themselves In the same area as competitors, meanwhile they hire local manufacturers and employees to assist the production of their product. By doing so, they not only fuel the international economy by creating a larger amount of production for trade, but they also are creating Jobs for people where they are most needed.

They usually establish foreign facilities and plants in countries where wage is extremely cheap- indicating that these countries are probably home to extremely poor human beings, who would have trouble finding a Job In the first place. Yet they also search to Invest In states that have attractive resources. FED Is good for developing countries because they make their economies stronger. By paying taxes and training personnel, they enrich their host territories economy and development.

Economic liberalizes believe that Mans can serve as a peace keeping potential during trying times between two countries. That interdependence globally would cause powers to be more understanding and hesitant before creating a war. However stating that underdeveloped nations cannot Lully control the Mans because of lack of proper enforcement of human right laws, there is a chance that the workers may be exploited, but through safety and health standards, this situation is usually controlled. I strongly believe that developing states should allow Mans to house facilities in their territories.

It’s clear that for development, you must establish a strong economy, and FED and Mans without a doubt assist lesser-developed countries in reaching development. They create Jobs for those who are uneducated and therefore disqualified from many Job technological advancement of local companies. I do, however, support that specific tariffs and laws should be set against the Mans goods being sold in that state’s market, because local producers could not stand a chance next to mass productions.

Also, the dangers of human rights being violated are possible when establishing an NC in a state with an unrecognized government and must be highly investigated for proper activity. In regards to those issues I believe that as long as the General Agreement on Tariffs and Trade (GAIT) enforce and practice their trade principals the global trade market will be a safe place. The prevarication and liberalizing of trade and foreign direct investment are the best way to go about developing a state.