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International Business and operations Management - Essay Example

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The region selected for our company’s global market expansion through investments, sales, and production is Asia with China is the focal entry point before further spreading out to other countries in the region including India, Pakistan and Korea. As the sales director, I will…
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International Business and operations Management
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International Business and operations Management

Download file to see previous pages... In China there are many existing domestic firms (over 8,000) engaged in the production and sale of agricultural equipment while a substantial number of international reputable firms have made major inroads into the Chinese farm machinery market. To understand international business ventures, Peng et al (2009) through their unified international business framework suggest two approaches in understanding international business frameworks. These are the institution-based view whereby the foreign venture firms aims at developing an understanding of the local business environment; and the resource-based view in which the firm utilizes its competitive advantage like superior technology or products to gain a foothold in the local markets.
China as one of the fastest developing emerging markets provide a highly developed potential market for agricultural equipment due to its large population and lowly mechanized farming methods hence is a viable entry point into the Asian region market. International strategic management mainly encompasses firms engaged in cross-border trade globally that usually take advantage of local resources in diverse geographical locations to enhance their productivity and returns. Lessard (2003) has identified four strategic frameworks that distinguish these international firms: geographic span of the particular industry; the pull of the specific locations including the markets, resources, and the competitive edge; upholding of the international strategy; and the extent of global incorporation including the localized spread.
The western and northern parts of China however have not greatly enjoyed the rapid growth experienced in other regions of the country. The government has therefore consequently provided incentives to foreign firms interested in expanding in these regions in form of lowered statutory requirements and other inducements as well as providing a high-quality communication and ...Download file to see next pagesRead More
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