International Business - Essay Example

The perspective of the uncle in regards to other nations taking jobs away from the American workers seems to be very truthful based on the effects of off-shoring. Companies in a lot of non-technological industries that require manual labor have left the United States in search of lower labor costs. It is impossible for the United States to compete in terms of labor cost with places such as China which pays its manufacturing workers less than 50 cents an hour. Products that are produced in Mexico such as Corona Extra beer have lower production costs than American made products.

These products are flooding the US marketplace with cheaper goods which is hurting the competitiveness of the domestic industries. The jobs in America depend on the success of companies that produce in the United States. International trade has different costs and benefits. One of the most important benefits of international trade is that it lowers the prices of goods in the marketplace. Some countries have competitive advantages in certain industries which enables them to produce certain goods at lower prices.

International trade protects countries against protectionism from elsewhere (Southerncenter). Another advantage of international trade is that it fosters international growth. . The use of outsourcing helps companies stay in business which is protecting jobs in America. Lower prices are achieved in the consumer markets due to the use of international trade. Countries are able to establish political ties with other countries by becoming trading partners. The use of international trade helps the global economy achieve growth.

Overall the perspective of the uncle is too one sided. The uncle is looking at the problem from only one dimension. International trade can have an adverse effect in the job creation in America, but only in certain industries. From a social perspective international trade is helping a lot of poor countries improve the state of their economies. A transnational model is used to characterize MNEs that attempt to achieve high global integration with high local responsiveness (Aboy). These companies utilize a network business structure instead of company divisions.

The use of the transnational model can provide companies with competitive advantages in a variety of business functions. The strategic plans of a company should focus on finding ways to become more efficient by adapting to the needs of the marketplace. Transnational companies realize that the domestic market in which they participate represents an important market opportunity. The marketing function of transnational corporations is not standardized. These companies have to customize their marketing efforts based on the unique attributes of the market in which they participate.

Depending on the location these firms must utilize bilingual marketing campaigns. To achieve the goal of obtaining high local responsiveness transnational firms must perform recurrent market research to learn about the tendencies and changing taste of the customers