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Critical Thinking and Discussion Question
Describe the shifts in the world economy over the past 30 years. What are the implications of these shifts for international businesses based in Britain? North America? Hong Kong?
After World War II, America used to be the number one leader in the world while Britain and China have less role. For the rich industrial countries like the UK, US, Denmark and New Zealand is declining of the FDI. Conversely, the developing countries like China has become more influential in the world economic over the last 30 years and expected to be the first leader in the world.
Especially, exporting of china has a significant blooming.
“The study of international business is fine if you are going to work in a large multinational enterprise, but it has no relevance for individuals who are going to work in small firms.” Evaluate this statement.
International business or globalization is talk about the trend towards a more integrated global economic system. I’m disagree with that there is no relevance for individual who are going to work in small business because every business should consider about economic and the economic depend on the would situation.
So, not only a big enterprise must study international business but small business should understand the role of global business also.
How have changes in technology contributed to the globalization of markets and production? Would the globalization of production and markets have been possible without these technological changes?
For the globalization of markets and production, they have changed with lower cost communications networks and lower transportation cost.
Both lead to easier to enable firm s to create global markets and allow firms to better respond to customer demands. For example; The Internet has facilitated the creation of a 24/7/365 marketplace where information is available in real time. So that make sense that the globalization of production and markets have been possible without these technological changes.
“Ultimately, the study of international business is no different from the study of domestic business. Thus, there is no point in having a separate course on international business.” Evaluate this statement.
The international business differs from the domestic business because: Countries are different in economic, political, legal and culture. The range of problem confronted by a manager in an international business is wider and the problems themselves more complex than those confronted by a manager in a domestic business. International transactions involve converting money into different currencies.
How might the Internet and the associated World Wide Web affect international business activity and the globalization of the world economy?
Over the last 20 years, internet static has increase sharply. Most business have a website that kind of another advertising. Customer around the world can access your business 24 hrs. Real location is not necessary because of power of internet. Some business only has in online and they can make more profit than existing business.
If current trends continue, China may emerge as the world’s largest economy by 2020. Discuss the possible implications for such a development for
The world trading system:
Many countries try to sign a contract with China for trade because its market is big and very interesting. In the future China economic could be larger than the US and other countries. The world monetary system:
China’s currency, Yuan, might be powerful than U.S. dollar or equal or more than other world currency. The business strategy of today’s European and US-based global corporations: They will invest in China or more corporate will shift to China. In term of exporting, they try to reduce tariff. In addition, they will co-business with Chinese and learn chinese also. global commodity prices:
The goods that is made in China is cheaper than other countries. Most global commodities will import from China.
Reread the Management Focus on Vizio and the market for flat-panel TVs and answer the following questions:
Why is the manufacturing of flat panel TV’s migrating to different locations around the world? Because they concern about cost of production, comparing between cost and profit in different countries.
Who benefits from the globalization of the flat panel display industry? Who are the losers? Vizio company: lower production cost
Vizio customer: high-quality with low price
labor: get job
host country: higher pollute environment
What would happen if The US government required that flat-panel displays sold in the United States had to also be made in the US? On balance, would this be a good or a bad thing? It will be a bad thing. In the short run, if the flat panel displays must be made in the United States, the total cost of the products will increase and become less competitive with other brands.
What does the example of Vizio tell you about the future of production in an increasingly integrated global economy? What does it tell you about the strategies that enterprises must adopt to thrive in highly competitive global markets? This is an example of benefit-cost analysis. The way to reduce production cost through the integrated global economy. They looking for out sourcing suppliers that cheaper than their country.Date: Oct 12,2021