Before buying a foreign company, the management (Natural Detergent Inc) has to heed its genuine concern to various advantages and disadvantages of international investing. It is an exceedingly significant business issue that requires the support of well designed strategies…
Reduced Manufacturing cost: As the company enlarges its coverage, large amount of production will subsequently reduce the company’s manufacturing cost. Once the manufacturing cost is reduced, it can sell the product at a cheaper rate and win the market.
Reduced HR cost; As Sindell K (2005, p.266) states, international investing would ensure diversification rather than concentrating in a single product or service. If Natural Detergent Inc buys another profitable foreign company, it can easily acquire a pool of diverse workforce. It would help HR management to be cost effective and creative in a foreign business environment. It is always good for a company to retain its experienced employees who are accustomed to the firm’s natural and technological environment.
Easy Marketing; Natural Detergent Inc can easily introduce its products to public by adding them to the foreign company’s products in local markets. It will avoid the initial difficulties of establishing a new plant in a foreign country.
Increases uncertainty; Foreign market is always a challenge to an American organization. Natural Detergent Inc has to exceedingly rely on the hired individuals in order to meet numerous organizational and legal requirements. In the same way, the company has to invest a good amount in advertising the product though the result is uncertain.
Cultural Disparities; when a company buys a foreign firm of different organizational structure and culture, it would lead to disputes and conflicts of interest among the labors and staff. To an American organization there is an increased chance of cultural conflict because US firms traditionally maintain a high degree of managerial autonomy. Therefore, major HR decision regarding recruitment, retention, and termination, is vested in management (Fenton-OCreevy, Gooderham P. & Nordhang O., 2005). In contrast, organizational decisions in many other countries, are subjected to various external constrains like trade ...
Cite this document
(“Pro/cons of International Investing Essay Example | Topics and Well Written Essays - 500 words”, n.d.)
Retrieved from https://studentshare.net/miscellaneous/390525-procons-of-international-investing
(Pro/Cons of International Investing Essay Example | Topics and Well Written Essays - 500 Words)
“Pro/Cons of International Investing Essay Example | Topics and Well Written Essays - 500 Words”, n.d. https://studentshare.net/miscellaneous/390525-procons-of-international-investing.
Notably, in most cases business mergers involve former competitors with an aim of combining market shares to enable them control market forces and offer quality products to the customers and majority shareholders to approve a merger. Nevertheless, specific monopoly laws pose a legal challenge for two dominant market players to merge.
To maximize the benefits of diversifying investments one must be more selective in the process of portfolio diversification. The goal of diversification is to maximize the chances of a positive return and by investing in diverse areas where their reactions would be different for the same event or news.
A major con of this strategy is that the profitability for the companies is lower because there are intermediaries in the exporting game that are taking away a large chuck of the profits. An alternative market strategy that Mr. Swanson should consider is foreign direct investment.
. . ]
The DOJ accused Microsoft of an abuse of monopoly power in the way in which it bundled its operating system and web browser. This made it impossible for other web browsers to compete as they had to either be downloaded from the Internet or purchased.
Here in light of this article, the topic in debate is death penalty or in other words capital punishment. Here the argument revolves around whether it is capital punishment is ethical or not. Here ethics of capital punishment is being discussed firstly and the basic idea that is being discussed is that 'physicians who are meant to aid people and treat their illness instead are being used as executioners'.
The impetus towards affirmative action is twofold: to maximize diversity in all levels of society, along with its presumed benefits, and to redress perceived disadvantages due to overt, institutional, or involuntary discrimination. By
Because of its high resolution and various rich colors which are sharp and detailed, it gives users a positively stunning reaction to what they are watching. A Mac book pro has the latest storage technology
The process leads to the development of foods that grow in shorter periods compared to natural foods, and they lead to increased yields.
Genetically modified foods play a critical role in the global world. Their invention brought a lot of
s to do will morality.2 Often, when an issue such as surveillance in the society is raised, a theory-practice dilemma seems to be experienced as the question of whether people must be allowed to engage in morally unacceptable conduct in the enjoyment of their privacy is raised.3
3 Pages(750 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Pro/cons of International Investing for FREE!