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Strategic Management - Outline Example

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Name Institution Course Instructor Date Strategic Management Globalisation Globalisation leads to a reduction in the segments of various markets, which emanates from an increase in the homogenisation of consumer’s preferences and taste. The process of globalisation increases interdependency within the national markets…
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Strategic Management
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Strategic Management

Download file to see previous pages... Barriers against International Trade Critics believe that factors that influence international trade undermine globalisation (Haberberg and Rieple, 2007:8). The factors include tariffs, licenses, embargos, and investment and exchange control with a view of protecting trade in the international market. The above factors influence the entry behaviour into the international market. Economic analysts have identified reasons behind the resistance to globalisation. These reasons are environmental influences that emanate due to international trade, employment abuses, and perceived inequality of benefits derived from globalisation. Many countries show concern about the treatment that their citizens get whenever they operate in the international scene. Conflicts that arise due to poor treatment may justify resistance to efforts towards globalisation. Benefits derived from the global market are very crucial to globalisation. The players in the international scene bring low-income countries and the developed countries. The transactions between these two groups usually differ. Economists have demonstrated that the benefits that developed nations acquire in the international market are higher when compared to low income countries. This situation tends to justify rejection of globalisation. The international Environment The trade in the international market usually take place within and between Europe, USA, and Japan. This trade depend on political and legal issues, which influence the relationship between these countries, cultural and social issues; shapes the products consumed by these nations, and the infrastructure within these countries. Infrastructure is very crucial because it dictates the operation of factors, which influence the international scene. For instance, transport network and communication determines the ability to deliver products in the international market. The international politics define the environment within which the international players would present their items. The political system dictates policies, which influence globalisation. The legal system of a country would derive its policies from the nation’s political system. These policies would influence the economic climate because they regulate business operations in the international scene. Critics believe that political intervention may affect taxes levied against products in the international market. The interventional by various political systems are evident through inflation and currency rate control. Social and cultural issues are very instrumental to globalisation. The beliefs and values in the international environment would influence practices such as consumer behaviour, expectation of the employees. The understanding of dynamism in the international culture would influence the approach applied by firms in the international market. Critics believe that cultural attributes observed in the international market depend on infrastructural development in a country (Haberberg and Rieple, 2007:12). For instance, employee’s skill would depend on education system of that country. On the other hand, telephone, electricity or transport system would dictate the behaviour adopted by various firms. Organisation Location in the International Environment The decision to introduce a product in the internatio ...Download file to see next pagesRead More
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