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t varies from one place to the other, for instance some regions witness high rates of poverty, hence low purchasing power and this undermines international trade. There are also economic barriers to international trade for example the famous global financial crisis which has led to high inflation and bailouts (Shah, 2011). Finally political barriers for example formation of trade bodies like world trade organization, (WTO). It is mandated to promote free and fair global trade but it has been criticized for serving the interests of rich countries therefore exploiting the poor ones (Shah, 2011). Political barriers are the most significant since politics involves power and allocation of resources and it dominates social, economic and cultural issues of trade. To curb the barriers, many businesses employ earned value technique to measure their progress. Earn value is a monitoring tool used to find out whether the budget and the planned time frame tallies with the actual work done to establish if the project is on track. There are barriers to smart earned value like cost, performance and quality. Opponents of the technique say that its implementation cost and efforts are enormous yet the derived benefits of implementation are limited (Tammo, 1999). This means that a business may spend a great deal to implement this project management tool but there may be low quality output. Cost barrier is the most difficult one to overcome since a business always need money to expand and operate. If more money is used to implement earned value technique then the business may run at squeezed profits or even at a loss due to high cost of
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One of the concerns facing the management is satisfying all involved stakeholders, including shareholders, customers, vendors, and to a lesser extend the society-at-large. Satisfying this diverse group is arduous at the best of times, but it gets close to impossible during an economic downturn or an industry-wide recession.
However, the stakeholders enjoy more when a business is a success, especially when it is recording inclining profits (Berends, 2004:12). Therefore, the stakeholders of a firm will ensure a firm is making profits. In making this achievement, they will bank on the management which is concerned with the business operations of the firm.
The drivers and recent economic trends include increased demand for specialized goods and globalization of technology, rapid technological advancement, international transportation systems, an openness of economic policies among a significant number of countries, and enhanced supply of necessary resources for internationalization.
The company was developed a one-car garage in Palo Alto by Dave Packard and William Hewlett. For such a reason, HP has become a world’s leading Personal Computer manufacturer since 2007 fending off stiff challenge of Chinese manufacturer Lenovo (Reading, 2004).
The author states that the potential costs, and possible solutions to such problems, must be weighed against the benefits in order to determine whether short-term capital should be allowed to flow, without restriction. Basically capital account transactions are classified into portfolio investment and direct investment.
Michael Porter presented a model (popularly known as Porter's Diamond) on influencing factors that make an Industry in a Country more competitive at a Global scale. This model presents a very practical perspective of the positioning and competence of an Organization in a Country that enables a Global Recognition of the Organization (Porter, 1990; Recklies Management Project GmbH, 2001).
Free trade proponents assure the public that the elimination or reduction of existing trade barriers among nations will enhance consumer choice, increase global wealth, secure peaceful international relations, and spread new technologies around the world.
The rise of new generations brings a change also in the consumer's needs. Saturated by products, today's marketplace suffers from a shortage of customers, and quality and a learning mentality is the key to maintain happy clients. It plays an essential role in obtaining a competitive advantage, leading to commercial success.
The infant industry argument claims that in certain circumstances government support for an industry may be justified on a temporary basis. The gist of the argument is that the present protection cost is accepted for the sake of future benefits where the infant will experience productivity growth and could compete in the domestic and world market.
Others may choose to go international. For example Jollibee Foods in Philippines and Cemex in Mexico have started operating globally.
Multinational corporations belong to various parts of the world and people in these
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