The competition is increased globally since companies look for the best suppliers offering high quality at low prices, search for international human talents and acquire the best possible know-how in order to satisfy better their customers' needs. As a result of the above mentioned the cooperation of countries is expanded. The countries understood that may gain reciprocal advantages, they can react to problems better when they work together with other countries rather than trying to solve the problems alone. Lastly, the countries with globalization main deal with issues e.g. environmental issues that are not in their territory. 2. After summarizing the positive and negative aspects of offshoring, state whether you support or are against offshoring and why. Include any experiences you or someone you know has had in which offshoring is affected. "improvements in technology will have as a result the need for fewer employees to accomplish the same task/work, particularly for the less skilled jobs that are easiest to offshore". (Hackos, 2004). The technology improvements will help companies to reduce their costs and thus reduce prices or invest the saved money in Research and Development. As a result, companies will grow and therefore will raise their employment rate and at the same time, they will increase highly paid positions in their countries. Another positive aspect of offshoring is that the poverty level in poor countries has been decreased. This allowed them to decrease their unemployment rate and consequently, people have more income to dispose of thus imports from rich countries have been increased i.e. the decrease of the poverty level in poor countries is beneficial both for the poor and the rich countries. The negative aspects are the following: the product prices are not reduced although the production costs are diminished. Jobs are replaced and working conditions are deteriorated. Jobs in poor countries are low paid. When a country asks for more then the Multinational Companies move to somewhere else, somewhere cheaper. Countries that have benefited from offshoring are China and India whereas the rest of the other underdeveloped countries remain in poverty. According to Joseph Stiglitz, during the last yeast of the last century, the number of people living in poverty conditions has increased by 100 million.(Daniels, Radebaugh & Sullivan, 2007) A personal experience that I have is a person I know in Greece. He had been working for the local cotton industry which was blooming in the country fifteen years ago producing excellent cotton.
A paper "International business and International Trade" outlines that consumers since they have to access to products from different countries they exercise pressure to the local companies in terms of offering more modern and cheaper products or simply of importing foreign products…
Corporate governance is the collection of procedures, civilization, rules, regulation and institution influencing the method a business is expressed, managed Controlled. Corporate governance is mainly analyzed as equally the arrangement and the relations which decide corporate way and presentation.
This era of globalization has lead to countries coming closer to each other, this has happened in all aspects including trade. International trade is the exchange of goods or services between economies. It is calculated in the current account of the balance of payment of the economy.
A member of the organization can restrict the importation of a product for a short period of time, with an aim of preventing a serious injury to the domestic industry that produces similar products. According to Brown (2008), such a step is called a safeguard action.
This paper discusses some of the cultural problems a multinational company is likely to face in other countries and also gives some solutions to these problems that can be used by the multinational company to undertake a successful venture.
Consumers demand is also determined by taste and preferences, in difference countries the demand structure of consumers is very different and this is one problem that the multinational companies face, an example is where consumers may prefer a cheap good and in some countries the consumers are more concerned about the quality and not the price.
The primary reason for this is the increased globalization over the past 20 years.
The business culture might be entirely different. In some cultures relationships are much more important than the actual contract and in others it is the opposite. For example; Americans tend to focus a lot on the contract and pay only a little attention to the development of the relationship between the people involved.
Why do they peruse government tariffs and how do they justify, highlighting what they done and why for this case study, looking also at the strengths).
Key issues highlighted by the case study are the various Governments' interest in the economy of the country and its relation to the health of the private and governmental organizations, how the government supports the organisations particularly the civil aviation industry in developing new technologies and giving sops as an encouragement to this industry.
However in doing so, corporations are drawn into certain traps that could lead to tremendous fall of their performance and, consequently, massive decrease in their profits. The mobile communications in the United Kingdom, as portrayed in the article, is one good example to illustrate the domino effect that is prevalent in business operations today.
The world’s economy is persistently taking a more global shape and this paper takes a close look at the issues regarding the international trade (Fernald and Greenfield, 2001). A well researched attempt has been made to evaluate the term