Doing Business Globally and Internationally - Wilmer International Limited - Essay Example

Doing Business Globally and Internationally Affiliation Executive Summary International business entails the concept of cross-border trade activities between different countries and organizations. The paper examines various aspects of international business by evaluating the partnership between Kellogg and Wilmar International. The essay examines the environmental factors and trends that contributed to the partnership. Moreover, there is a comparative analysis of the first and second entry attempt by Kellogg Company into the Chinese market. The national and organization cultures highlighted in the case study are examined critically in the essay. In addition, the effects of the exchange rates movements on the partnership are highlighted in the paper. Finally, an analysis of the various aspects of international business is identified in the paper. Contents Running Head: DOING BUSINESS GLOBALLY AND INTERNATIONALLY 1 1 Doing Business Globally and Internationally 1 Name 1 Institution Affiliation 1 Executive Summary 2 DOING BUSINESS GLOBALLY AND INTERNATIONALLY 2 2 International business entails the concept of cross-border trade activities between different countries and organizations. The paper examines various aspects of international business by evaluating the partnership between Kellogg and Wilmar International. The essay examines the environmental factors and trends that contributed to the partnership. Moreover, there is a comparative analysis of the first and second entry attempt by Kellogg Company into the Chinese market. The national and organization cultures highlighted in the case study are examined critically in the essay. In addition, the effects of the exchange rates movements on the partnership are highlighted in the paper. Finally, an analysis of the various aspects of international business is identified in the paper. 2 DOING BUSINESS GLOBALLY AND INTERNATIONALLY 19 3 Environmental factors and trends 4 Wilmer International Limited refers to an investment company that operates in various business segments in different parts of the world. The company business activities encompass different parts such as processing and merchandising of lauric and palm oil as well as refining and processing soybean. The company also operates in other segments, which include sales, packaging of various products such as edible oils, flour, grains and rice (Aswathappa 27). The company also engages in the cultivation and milling of palm oil and sugar (Wilmar-international.com 2015). The Chinese economy ranks among the fastest expanding economies in the world. In addition, the authorities in the countries have diversified their political and economic approaches in order to cater for the emergence of globalization of trade (Alon 32). 4 The Chinese government has liberalized the criteria of using the internet that is crucial for marketing activities. Initially, the government controlled most of the online activities, which limited internet marketing (Yan &Luo 20). The government has enacted various legislations that promote the use of social media among the population. This use of the internet enables the organizations in the venture to advertise their products to the online community. The companies can interact with the consumers through social media and their respective websites (Campbell &Netzer 38). In this context, Wilmer can inform the customers regarding the location of their stores in different parts of the country while Kellogg can provide information regarding various aspects of their products (Campbell &Netzer 31). 4 The taxing system in China has been revised to accommodate direct foreign investments. The revised taxing criterion enables the companies to operate effectively in the Chinese market, which facilitates profitability and sales (Aswathappa 39). Furthermore, the tax incurred on food products in the country has reduced which creates a right atmosphere for the operations of the Joint Venture (Zhou & Jin 41). 5 Multinationals had trouble to operate in an environmentally unfriendly environment that limited their activities (Zhou & Jin 45). In addition, the Chinese population engaged in the consumption of traditional meals, which hindered the sales, and profits of multinationals in the food sector (Zhou & Jin, 2013 28). Presently, the Chinese government has enacted various laws that government the environment hence creating a favorable environment for food processing organizations (Campbell &Netzer 33). 5 The Chinese economy is stable due to effective governance and political stability that reduces the occurrence of skirmishes (Devonshire-Ellis, Scott &Woollard 36). The Chinas economy stability, as well as reduction of the regulations in the food industry, is the prime political factors resulting to a joint venture. The other political factor is the enactment of the food safety act in the country. This concept of monitoring the production process of food product promotes the availability of quality products in the market and minimizes unfair competition in the market (Zhou & Jin 48). 5 Ethical factors contribute to the initiation of the joint venture of Kellogg and Wilmer companies. Wilmer has a good reputation in the processing and distribution of various food products in the country. On the other hand, Kellogg Company has a reputation for the manufacture of the breakfast snacks. In this context, Kellogg capitalizes on the reputation of Wilmer to avail their products to the consumers. Wilmer also relies on the reputation of Kellogg’s snacks to attract more consumers to their products (Wu & Zhu 35). 5 Hofstedes Cultural Dimensions Theory 6 The theory highlights on the concept that value depends on the various dimension of cultures such as inequality versus equality and individualism versus collectivism. Also, uncertainty tolerance versus uncertainty avoidance, femininity versus masculinity, temporal orientation, and restraint versus indulgence are other aspects of the theory. According to the theory, Kellogg and Wilmar should have empathy and knowledge of the Chinese scene. In addition, the reaction of the China’s populace regarding the products offered by the partnership differs from that of the consumers in United States (Wu & Zhu 35). 6 Kellogg Entry into Chinese Market 6 Kelloggs entry into the Chinese market is based on joint ventures with the existing organizations in the country. The first attempt by Kellogg to enter the Chinese market encompassed a complete acquisition of the assets and personnel of navigable Foods Company. The acquisition was geared towards facilitating the company’s growth in the Chinese market. Kellogg Company would use the assets and infrastructure of Navigable Foods to manufacture and distribute their biscuits to various parts of the country (Devonshire-Ellis, Scott &Woollard, 2011 39). Moreover, the company would also use the human personnel of Navigable foods in its operations in order to optimize the brand name in China. On the contrary, the joint venture between Kellogg and Wilmer benefits both companies at various levels of trade. Kellogg Company uses the distribution network and assets of Wilmer International Company to manufacture and distribute their products in China. The sales earnings of the products in China are shared equally between the companies (Dlabay& Scott 30). 6 The drivers of the acquisition of the Navigable Foods Company include the need to expand operations to Chinese market and increase the profits, as well as market share. On the other hand, the drivers of the joint venture between Wilmar and Kellogg entail the elements of the external environment in the Chinese food industry. There are differences in the driving factors of Kelloggs entry into the Chinese market in the two cases (Dlabay& Scott 30). First, the entry criteria for acquiring the assets of Navigable Foods involved minimal research on various aspects of the market (Hladik 37). In this case, the analysts at Kellogg Company failed to evaluate the business environment of the food industry in China. Contrarily, the second entry attempt involved adequate research on different environmental factors in the Chinese market. Secondly, acquisition of the Navigable Foods Company aimed at expanding the operations of the company to the Chinese market in order to promote sales and profitability. The second entry attempt into the Chinese market aspires to enhance the market share and brand the products in the Chinese market. In addition, a third party undertakes most of the distribution and marketing activities of the company’s products, which is a crucial initiative from branding (Dlabay& Scott 50). 7 In the first entry scenario, Kellogg risked encountering an increase in the losses due to failure to evaluate Chinas food industry adequately. Furthermore, the driving factors focused on the growth of the company in the Chinese food industry. On the other hand, the second market entry criterion has various risk factors (Kelloggs.com 2015). Competition in the food industry in China is currently high due to the increase in multinational companies in the market. The introduction of Kellogg’s products in the market might fail to compete effectively with the established firms in the country. The partnership with Wilmer would succeed because of various reasons (Kelloggs.com 2015). First, Wilmar International Company is an agribusiness organization with a large number of manufacturing plants worldwide. The distribution and manufacturing strength of Wilmar is an essential driver of the success of the joint venture. Additionally, the company’s strong network for distribution in three major cities in China provides an adequate and reliable avenue for the flow of Kellogg’s products to the consumers (Hladik 27). 8 Secondly, the broad command of Wilmar in the Chinese market is crucial for enabling Kellogg to serve more markets in the country. Wilmar has established various plants and distribution facilities in China for its agronomy and food processing business. In this case, the companys brand is established among the population, which is an important factor in facilitating the growth of Kellogg in the market (Kelloggs.com 2015). Wilmar International can utilize its reputation in the world market to enhance the entry of Kellogg’s products in China. Thirdly, the economy of China as well as its population provides an adequate market for the success of Kellogg. China is home for the largest population in the world. In addition, the country accounts for the second largest economy in the world. The two aspects of China provide a reliable avenue for the consumption of Kellogg’s products (Kelloggs.com 2015). Wilmar and Kellogg cannot ignore the breakfast snacks in China because of the availability of adequate market and resources. In this case, the joint venture between Kellogg and Wilmar will be successful (Nguyen 31). 8 National and Corporate Cultures 9 Corporate Culture 9 Quality 9 Kellogg mainly operates in the American and European markets. The culture of the company is based on various aspects of the American culture. The culture of the organization encompasses the aspect of quality (Stahl &Björkman 32). Quality is among the most sensitive elements of various products in the food industry. Kellogg and Wilmar Companies promote the quality of their product adopting reliable production techniques. Moreover, Kellogg’s joint venture with Wilmar is driven by the need to produce quality products for the consumers (Pearson 44). 9 Environment 9 The culture of Kellogg Company emphasizes on the concepts of promoting sustainable production and distribution channels. The company adopts Wilmar’s production and distribution lines because of their sustainability (Taylor 21). The idea of developing environmental friendly activities in their production is essential in enhancing the companys brand and public relations. The culture of promoting sustainability reflects on the companys packaging criteria (Mitchell 20). 9 Safety 10 Safety refers to an aspect of enhancing the ability of the food to sustain the health of the consumers. The products provided by the company promote various aspects of because of the safe production process. The company monitors different aspects of the product during the production process in order to facilitate its safety (Neelankavil 43). Moreover, the safety of the products is enhanced by ensuring that they comply with the specified government regulations. 10 Health 10 The food industry is among the most sensitive sectors in the economy because it is directly related to the health of the consumers (Wei 26). The company evaluates the ingredients of its products in order to promote the health of its consumers. The breakfast snacks provided by the company are monitored appropriately to minimize the levels of sugar (Prescott & Swartz 29). 10 National Cultures 10 The culture of the government of China regarding the food industry focuses on the safety and health of the citizens. The authorities monitor the products of the company to establish different aspects of safety and dietary (Stahl &Björkman 32). Furthermore, the Chinese society appreciates food products that reflect on their tradition. In this case, the companies targeting China’s market should embrace their culture in order to enhance sales and profitability (Pearson 31). 10 Exchange rates Movements 11 The partnership between Kellogg and Wilmar is market oriented in that the former sets up a subsidiary to manufacture and sell products for the Chinese market. In this case, Kellogg and Wilmar remit the profits of the partnership to United States and Singapore respectively. The raw materials are obtained from the United States and states where Wilmar operates (Rugman 33). The movement in the exchange rate affects the operations of the partnership in various ways. First, a decrease in the value of the U.S dollar compare to the Chinese Yuan tends to increase the cost of importing raw materials (Tihanyi, Devinney& Pedersen 33). Consequently, the cost of the breakfast snack in China increases which limits the competitiveness of the partnership (Shurtleff, Huang & Aoyagi 43). However, a rise in the United States dollar value and a reduction in the value of the Chinese Yuan reduce the cost of raw materials. Consequently, the production cost decreases leading a low market price for the products (Silkenat, Aresty&Klosek 57). 11 Transaction Exposure Theory 12 Aspects of International Business 13 Marketing International marketing entails appreciation of people that they have various needs. Companies like Coca-Cola, Gillette, BIC or Cadbury Schweppes they have brands, which are widely recognized worldwide. The audience at global scale targets the products of the companies. It is also worth to note the influence of the regional differences in order to recognize the importance of the global marketing. Companies should accept the differences of the customs, values, currencies and the languages (Vaidya 38). Thus, some products may only suit specific countries and fail to the others. For instance, when marketing the products like Razor of Gillette in countries like China or India the language is imperative to focus. To get the relevant information, it takes some time before getting to comprehend the new languages and familiarizing with the new locations (Wall, Minocha& Rees 42). When am planning my global business I would first research to get the probable response to my customers. Again when I understand the effectiveness of the marketing strategy I am going to use, it will help to counteract the competition that my products can come across in the market. The tourism course that I will pursue will enable me understand different languages, which is essential in the global marketing. Finally, tourism course knowledge will help me to strategize properly when venturing into the global business in future since I will understand different cultures (Riahi-Belkaoui 25). Political environment The political atmosphere is very crucial in the international marketing. There are political factors that affect the legal and political differences. Legal and political differences influence the type of products, which are sold in a given country. There are various types of the government system with different political systems (Webb 38). These political systems govern different institutions, regulations, attitudes, and rules. There are some rules, which are supported by different government systems, which hamper globalization. Other government policies limit the scope of the country’s business. It is always good to understand the country’s laws before marketing any product in the country. Some countries have political systems, which bars some goods (Webb 21). The knowledge of the political environment will help me to locate the conducive business environment, where my business can do well. Again, if I understand the political atmosphere of a place that will mean that in future I will be able to start my global business in an environment that suits my business growth. The tourism and marketing master’s course that I intend to pursue will facilitate understanding different movements of people across the word, which will be very essential in designing marketing strategy at global scale (Wall, Minocha& Rees 23). Technology Currently, there are many changes, which have occurred in the international marketing strategies. This policy influences the sale of products and the promotion of the same. The reason as why the changes have occurred is due the explosive and dramatic growth of technology (Wall, Minocha& Rees 31). The multinational companies would venture to the ways that would give rise to the rapid growth of the technology to aid the marketing of their goods. An advanced technology offers a different surrounding for international marketing (Wall, Minocha& Rees 28). Many companies and organizations have considerable freedom to establish a product or service to know where it can be best suited for the new technology. The face of the international marketing has been changed by the new technology (Webb 32). Advancement technology has turned the face of international marketing and made the marketing sector to be more efficient. The aspect of technology can help me when am designing my global business in areas of marketing and promoting my products. When I use the new technology in global business the marketing can be efficient and target a greater population, which is an important aspect of any business. Again, if in future I would wish to venture to a global business technology will help me to strategize correctly and understand the market trends and the commodities which are in greater demand on the global scale (Wall, Minocha& Rees 58). Tourism and marketing knowledge that I will gain after schooling together with the technology awareness will greatly assist me in researching for the goods markets for my products at global scale. 13 Conclusion 15 Environmental factors and trends Wilmer International Limited refers to an investment company that operates in various business segments in different parts of the world. The company business activities encompass different parts such as processing and merchandising of lauric and palm oil as well as refining and processing soybean. The company also operates in other segments, which include sales, packaging of various products such as edible oils, flour, grains and rice (Aswathappa 27). The company also engages in the cultivation and milling of palm oil and sugar (Wilmar-international.com 2015). The Chinese economy ranks among the fastest expanding economies in the world. In addition, the authorities in the countries have diversified their political and economic approaches in order to cater for the emergence of globalization of trade (Alon 32). The Chinese government has liberalized the criteria of using the internet that is crucial for marketing activities. Initially, the government controlled most of the online activities, which limited internet marketing (Yan &Luo 20). The government has enacted various legislations that promote the use of social media among the population. This use of the internet enables the organizations in the venture to advertise their products to the online community. The companies can interact with the consumers through social media and their respective websites (Campbell &Netzer 38). In this context, Wilmer can inform the customers regarding the location of their stores in different parts of the country while Kellogg can provide information regarding various aspects of their products (Campbell &Netzer 31). The taxing system in China has been revised to accommodate direct foreign investments. The revised taxing criterion enables the companies to operate effectively in the Chinese market, which facilitates profitability and sales (Aswathappa 39). Furthermore, the tax incurred on food products in the country has reduced which creates a right atmosphere for the operations of the Joint Venture (Zhou & Jin 41). Multinationals had trouble to operate in an environmentally unfriendly environment that limited their activities (Zhou & Jin 45). In addition, the Chinese population engaged in the consumption of traditional meals, which hindered the sales, and profits of multinationals in the food sector (Zhou & Jin, 2013 28). Presently, the Chinese government has enacted various laws that government the environment hence creating a favorable environment for food processing organizations (Campbell &Netzer 33). The Chinese economy is stable due to effective governance and political stability that reduces the occurrence of skirmishes (Devonshire-Ellis, Scott &Woollard 36). The Chinas economy stability, as well as reduction of the regulations in the food industry, is the prime political factors resulting to a joint venture. The other political factor is the enactment of the food safety act in the country. This concept of monitoring the production process of food product promotes the availability of quality products in the market and minimizes unfair competition in the market (Zhou & Jin 48). Ethical factors contribute to the initiation of the joint venture of Kellogg and Wilmer companies. Wilmer has a good reputation in the processing and distribution of various food products in the country. On the other hand, Kellogg Company has a reputation for the manufacture of the breakfast snacks. In this context, Kellogg capitalizes on the reputation of Wilmer to avail their products to the consumers. Wilmer also relies on the reputation of Kellogg’s snacks to attract more consumers to their products (Wu & Zhu 35). Hofstedes Cultural Dimensions Theory The theory highlights on the concept that value depends on the various dimension of cultures such as inequality versus equality and individualism versus collectivism. Also, uncertainty tolerance versus uncertainty avoidance, femininity versus masculinity, temporal orientation, and restraint versus indulgence are other aspects of the theory. According to the theory, Kellogg and Wilmar should have empathy and knowledge of the Chinese scene. In addition, the reaction of the China’s populace regarding the products offered by the partnership differs from that of the consumers in United States (Wu & Zhu 35). In this case, both companies should undertake adequate market research to establish the needs of the local population regarding the raw materials and production criteria of the food. Kellogg utilized the assets and distribution channel of Wilmar International which was integrated adequately into the Chinese society. The Channels of Wilmar International enables Kellogg to establish an effective market for its food in the Chinese market. Kellogg Entry into Chinese Market Kelloggs entry into the Chinese market is based on joint ventures with the existing organizations in the country. The first attempt by Kellogg to enter the Chinese market encompassed a complete acquisition of the assets and personnel of navigable Foods Company. The acquisition was geared towards facilitating the company’s growth in the Chinese market. Kellogg Company would use the assets and infrastructure of Navigable Foods to manufacture and distribute their biscuits to various parts of the country (Devonshire-Ellis, Scott &Woollard, 2011 39). Moreover, the company would also use the human personnel of Navigable foods in its operations in order to optimize the brand name in China. On the contrary, the joint venture between Kellogg and Wilmer benefits both companies at various levels of trade. Kellogg Company uses the distribution network and assets of Wilmer International Company to manufacture and distribute their products in China. The sales earnings of the products in China are shared equally between the companies (Dlabay& Scott 30). The drivers of the acquisition of the Navigable Foods Company include the need to expand operations to Chinese market and increase the profits, as well as market share. On the other hand, the drivers of the joint venture between Wilmar and Kellogg entail the elements of the external environment in the Chinese food industry. There are differences in the driving factors of Kelloggs entry into the Chinese market in the two cases (Dlabay& Scott 30). First, the entry criteria for acquiring the assets of Navigable Foods involved minimal research on various aspects of the market (Hladik 37). In this case, the analysts at Kellogg Company failed to evaluate the business environment of the food industry in China. Contrarily, the second entry attempt involved adequate research on different environmental factors in the Chinese market. Secondly, acquisition of the Navigable Foods Company aimed at expanding the operations of the company to the Chinese market in order to promote sales and profitability. The second entry attempt into the Chinese market aspires to enhance the market share and brand the products in the Chinese market. In addition, a third party undertakes most of the distribution and marketing activities of the company’s products, which is a crucial initiative from branding (Dlabay& Scott 50). In the first entry scenario, Kellogg risked encountering an increase in the losses due to failure to evaluate Chinas food industry adequately. Furthermore, the driving factors focused on the growth of the company in the Chinese food industry. On the other hand, the second market entry criterion has various risk factors (Kelloggs.com 2015). Competition in the food industry in China is currently high due to the increase in multinational companies in the market. The introduction of Kellogg’s products in the market might fail to compete effectively with the established firms in the country. The partnership with Wilmer would succeed because of various reasons (Kelloggs.com 2015). First, Wilmar International Company is an agribusiness organization with a large number of manufacturing plants worldwide. The distribution and manufacturing strength of Wilmar is an essential driver of the success of the joint venture. Additionally, the company’s strong network for distribution in three major cities in China provides an adequate and reliable avenue for the flow of Kellogg’s products to the consumers (Hladik 27). Secondly, the broad command of Wilmar in the Chinese market is crucial for enabling Kellogg to serve more markets in the country. Wilmar has established various plants and distribution facilities in China for its agronomy and food processing business. In this case, the companys brand is established among the population, which is an important factor in facilitating the growth of Kellogg in the market (Kelloggs.com 2015). Wilmar International can utilize its reputation in the world market to enhance the entry of Kellogg’s products in China. Thirdly, the economy of China as well as its population provides an adequate market for the success of Kellogg. China is home for the largest population in the world. In addition, the country accounts for the second largest economy in the world. The two aspects of China provide a reliable avenue for the consumption of Kellogg’s products (Kelloggs.com 2015). Wilmar and Kellogg cannot ignore the breakfast snacks in China because of the availability of adequate market and resources. In this case, the joint venture between Kellogg and Wilmar will be successful (Nguyen 31). National and Corporate Cultures Corporate Culture Quality Kellogg mainly operates in the American and European markets. The culture of the company is based on various aspects of the American culture. The culture of the organization encompasses the aspect of quality (Stahl &Björkman 32). Quality is among the most sensitive elements of various products in the food industry. Kellogg and Wilmar Companies promote the quality of their product adopting reliable production techniques. Moreover, Kellogg’s joint venture with Wilmar is driven by the need to produce quality products for the consumers (Pearson 44). Environment The culture of Kellogg Company emphasizes on the concepts of promoting sustainable production and distribution channels. The company adopts Wilmar’s production and distribution lines because of their sustainability (Taylor 21). The idea of developing environmental friendly activities in their production is essential in enhancing the companys brand and public relations. The culture of promoting sustainability reflects on the companys packaging criteria (Mitchell 20). Safety Safety refers to an aspect of enhancing the ability of the food to sustain the health of the consumers. The products provided by the company promote various aspects of because of the safe production process. The company monitors different aspects of the product during the production process in order to facilitate its safety (Neelankavil 43). Moreover, the safety of the products is enhanced by ensuring that they comply with the specified government regulations. Health The food industry is among the most sensitive sectors in the economy because it is directly related to the health of the consumers (Wei 26). The company evaluates the ingredients of its products in order to promote the health of its consumers. The breakfast snacks provided by the company are monitored appropriately to minimize the levels of sugar (Prescott & Swartz 29). National Cultures The culture of the government of China regarding the food industry focuses on the safety and health of the citizens. The authorities monitor the products of the company to establish different aspects of safety and dietary (Stahl &Björkman 32). Furthermore, the Chinese society appreciates food products that reflect on their tradition. In this case, the companies targeting China’s market should embrace their culture in order to enhance sales and profitability (Pearson 31). Exchange rates Movements The partnership between Kellogg and Wilmar is market oriented in that the former sets up a subsidiary to manufacture and sell products for the Chinese market. In this case, Kellogg and Wilmar remit the profits of the partnership to United States and Singapore respectively. The raw materials are obtained from the United States and states where Wilmar operates (Rugman 33). The movement in the exchange rate affects the operations of the partnership in various ways. First, a decrease in the value of the U.S dollar compare to the Chinese Yuan tends to increase the cost of importing raw materials (Tihanyi, Devinney& Pedersen 33). Consequently, the cost of the breakfast snack in China increases which limits the competitiveness of the partnership (Shurtleff, Huang & Aoyagi 43). However, a rise in the United States dollar value and a reduction in the value of the Chinese Yuan reduce the cost of raw materials. Consequently, the production cost decreases leading a low market price for the products (Silkenat, Aresty&Klosek 57). The partnership between Kellogg and Wilmar International leads is affected positively by the movements in the exchange rates. Both companies are multinationals operating in a foreign country. In this case, the companies rely on the home currencies in most of their operations in order to enhance the standards and accuracy of their accounting processes (Riahi-Belkaoui 36). The organizations obtain their raw materials from their respective countries as well China. Various changes in the in the exchange rates in the Chinese market affects the companys operations in various ways. A rise in the Chinese Yuan value affects the profitability of the company. Increased value of the Yuan in comparison with the United States dollar influences the cost of the raw materials and the companys sales (Stahl &Björkman 39). The consumers of the breakfast snacks purchase their products in the local currency and the company converts the earnings to American dollars in order to evaluate their profits in a standard manner. The increase in the value of the Yuan in comparison to the dollar facilitates the companys profits in dollars. However, the company incurs high costs in purchasing the raw materials in the Chinese market (Riahi-Belkaoui 46). On the other hand, an increase in the value of the United States dollar in comparison with the Yuan affects the profits and costs of raw materials negatively and positively respectively. A more valuable U.S dollar enables the company to purchase raw materials locally at lower prices which minimizes the operations costs and consequently maximizing the profits (Riahi-Belkaoui 20). Furthermore, consumers purchase the products in Chinese Yuan which increases the company’s profits and revenue after conversion into dollars. Transaction Exposure Theory The transaction exposure theory highlights the risks of a company operating in a foreign market on the changes in the exchange rates. Kellogg Company agreed to use the facilities of Wilmar International their distribution and production processes (Riahi-Belkaoui 40). In this case, Kellogg has a transaction exposure that the U.S. dollar will depreciate with respect to the Chinese Yuan. Consequently, Kellogg will be forced to spend additional dollars to purchase the same amount of Yuan to complete a particular transaction (Riahi-Belkaoui 32). Aspects of International Business Marketing International marketing entails appreciation of people that they have various needs. Companies like Coca-Cola, Gillette, BIC or Cadbury Schweppes they have brands, which are widely recognized worldwide. The audience at global scale targets the products of the companies. It is also worth to note the influence of the regional differences in order to recognize the importance of the global marketing. Companies should accept the differences of the customs, values, currencies and the languages (Vaidya 38). Thus, some products may only suit specific countries and fail to the others. For instance, when marketing the products like Razor of Gillette in countries like China or India the language is imperative to focus. To get the relevant information, it takes some time before getting to comprehend the new languages and familiarizing with the new locations (Wall, Minocha& Rees 42). When am planning my global business I would first research to get the probable response to my customers. Again when I understand the effectiveness of the marketing strategy I am going to use, it will help to counteract the competition that my products can come across in the market. The tourism course that I will pursue will enable me understand different languages, which is essential in the global marketing. Finally, tourism course knowledge will help me to strategize properly when venturing into the global business in future since I will understand different cultures (Riahi-Belkaoui 25). Political environment The political atmosphere is very crucial in the international marketing. There are political factors that affect the legal and political differences. Legal and political differences influence the type of products, which are sold in a given country. There are various types of the government system with different political systems (Webb 38). These political systems govern different institutions, regulations, attitudes, and rules. There are some rules, which are supported by different government systems, which hamper globalization. Other government policies limit the scope of the country’s business. It is always good to understand the country’s laws before marketing any product in the country. Some countries have political systems, which bars some goods (Webb 21). The knowledge of the political environment will help me to locate the conducive business environment, where my business can do well. Again, if I understand the political atmosphere of a place that will mean that in future I will be able to start my global business in an environment that suits my business growth. The tourism and marketing master’s course that I intend to pursue will facilitate understanding different movements of people across the word, which will be very essential in designing marketing strategy at global scale (Wall, Minocha& Rees 23). Technology Currently, there are many changes, which have occurred in the international marketing strategies. This policy influences the sale of products and the promotion of the same. The reason as why the changes have occurred is due the explosive and dramatic growth of technology (Wall, Minocha& Rees 31). The multinational companies would venture to the ways that would give rise to the rapid growth of the technology to aid the marketing of their goods. An advanced technology offers a different surrounding for international marketing (Wall, Minocha& Rees 28). Many companies and organizations have considerable freedom to establish a product or service to know where it can be best suited for the new technology. The face of the international marketing has been changed by the new technology (Webb 32). Advancement technology has turned the face of international marketing and made the marketing sector to be more efficient. The aspect of technology can help me when am designing my global business in areas of marketing and promoting my products. When I use the new technology in global business the marketing can be efficient and target a greater population, which is an important aspect of any business. Again, if in future I would wish to venture to a global business technology will help me to strategize correctly and understand the market trends and the commodities which are in greater demand on the global scale (Wall, Minocha& Rees 58). Tourism and marketing knowledge that I will gain after schooling together with the technology awareness will greatly assist me in researching for the goods markets for my products at global scale. Conclusion International business entails various aspects of doing business on the global platform. The criteria for entering a particular global market vary depending on the operations of a multinational company. Furthermore, the cultural dimensions of the host country influence the success of multinationals in a particular market. American companies operating in the food industry have trouble to establish effectively in the Asian market. The culture of the populace of the host nation affects the consumer attitude towards a particular product. Kellogg initial attempt to enter the Chinese food industry failed because of the lack of enough information regarding the culture of the local market. The theory of Hofstedes on Cultural Dimensions is applicable in enhancing the success of the current partnership between Wilmar International and Kellogg. The changes in the exchange rates also influence the revenue and profits of the partnership. In addition, the national and organizational cultures affect the operations of the partnership in the Chinese food industry. There are various aspects of international business that are essential for enhancing career development in tourism and marketing such as technology, marketing and political environment. References Alon, I. (2013). Chinese economic transition and international marketing strategy. Westport, Conn.: Praeger. Aswathappa, K. (2010). International business. New Delhi: Tata McGraw-Hill Education. Baran, R., Pan, Y., &Kaynak, E. (2012).International joint ventures in East Asia. New York: International Business Press. Campbell, D., &Netzer, A. (2009).International joint ventures. 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