Introduction to International Business- myassignmenthelp.com

Question: Discuss about theIntroduction to International Business for Global Strategy. Answer: A Review of Global Strategy: An Organizing Framework This article written by Sumantra Ghoshal aims at providing a conceptual framework relating to the different issues relevant to the global strategies. This article shall assist the managers working in multinationals corporations, in analyzing and reviewing the issues that are associated with the global strategies of such multinational corporations. The author discusses about the changing and developing concepts of global strategy, portraying the significance of an organization framework within a company. In his attempt to analyze the distinct views and concepts relating to global strategy, the author discusses about the theories asserted by Hout, Hamel, Prahalad and Levitt. In their opinion, the term global strategy encompasses international flow of human resources, development of values and advancement in technology. It is often observed that the corporate objectives contradict with each other owing to the multidimensional aspect that characterizes such corporate objectives. In the words of Ghoshal, Actions to achieve a particular objective often impede another equally important objective. The significance of this article lies on the fact that it acts as guidelines that would enable the managers of multinational companies to review their strategies that already exists instead of developing new ones for the purpose of achieving more global strategies (Ghoshal 1987). The article commences with several perspectives and prescriptions that have been developed by other writers and the author differentiates between his own perceptions with that of the other writers on global strategy. He precisely discussed the views of the four writers and entailed how their perceptions may contradict with each other. He further explains the difference between the integrated analysis of different means and ends are more useful as compared to the simple categorizing approach that merely differentiates between multi-domestic strategies. The author, Sumanta Ghoshal further advises the readers that in order to be successful, the firms must distinguish the management system of the firm so that the managerial activities fall under the internal consistencies within the firm and the external consistencies within its own environment. The author opines that this simply serves as a starting point for planning the overall strategies of the corporation (Ghoshal 1987). The author asserts that managers working in multinationals must have knowledge about the most effective global strategy and has provided theories that would assist the managers to understand the meaning and significance of global strategy in a corporation. On the other hand, the author states that the present literature contains certain confused and ambiguous findings that would hinder the implementation of the global strategies so recognized, in practice. This implies that although the author has provided several theories and concepts to understand the concept of global strategy and its importance for any corporation, but at the same time, the author did not clearly mention about any particular theory, which could be used in practice. Ghoshal asserts that the fundamental nature of an organizing framework and the means to a successful global strategy is to maintain the interaction between the various means and goals. The MNCs may be in a beneficial position with the implementation of the organizational framework, as the framework would outline the inconsistency between the various goals and means, focusing more on the strategic dilemmas (Ghoshal 1987). The author supports his argument with the presentation of a table that demonstrates the relationships between the strategies objectives and the sources of the advantage and the means of realizing the goals with the use of such sources. Ghoshal further combines the new-resource based theory with the traditional industrial organization-based theory with a view to form a stringent theoretical foundation (Ghoshal 1987). He also takes the internal industrial performance and the external international factors into account. He is of the view that in global trading, business performance can be enhanced if it is capable of adopting an appropriate and effective strategy that would make the maximum optimization of the internal resources and would be sufficiently competent to respond to any external challenges. Ghoshal further states that since the multinational companies set up its subsidiaries in various countries might be affected by contradictory values, conflicting cultures, geography, economic condition etc. In order to maximize the earnings of the company from the internal capabilities o the corporation, it is imperative for a multinational company to adopt and implement the innovative actions, adaptation and learning as they are considered as fundamental instruments to bring the corporation in an advantageous position (Ghoshal 1987). This argument presented by the author implies the fact that learning, innovation and adaptation which is known as the fundamental instrument of optimizing the internal capabilities of the multinationals, shall enable the corporation to survive the competitive performance and possibility of the company in the globalization economy. The author emphasis on the fact that for the purpose of making optimum use of potential for learning, the international organizations must also consider earning as a precise and specific objective. In this article, the author did not provide any further research on validity and reliability. The article did not provide any clear idea about the learning model to be build so as to enable the learning goals to attain the objectives in practice. This review has summarized as well as analyzed the article Global Strategy: An Organizing Framework written by Sumanta Ghoshal. The article acknowledged the complex nature of the issues in various ways, For instance, the author explained how the managers of multinational companies may contradict with each other while determining the appropriate strategic advantage for the companies. The article further explained the adverse effect that might arise with the globalization of the companies owing to the lack of knowledge and awareness among the managers with respect to the concept of global strategy and adoption of the type of global strategy that should be adopted for maximum optimization of the resources of the organizations. The information provided in this article is accurate, credible and easily accessible. The article has provided with a better understanding amongst the business community with respect to the advantage and the disadvantages that are associated with the globalization of the multinational companies. Reference Ghoshal, S., 1987. Global strategy: An organizing framework.Strategic management journal,8(5), pp.425-440. Introduction to International Business- MyAssignmenthelp.com Question: Write about theIntroduction to International Business. Answer: Introduction: Globalization represents a process by which national economies become interdependent and integrated with one another. It is transforming the conventional way of conducting business across globe. Current globalization wave has also created impact on the way different industries are focusing on conducting business in Australian market. The globalization concept was started from the human civilization process. Adam Smith has argued against the mercantilist theory and advocated trade practices so that countries can able to produce their best product at cheaper price. In the current business structure, globalization has allowed businesses to reach beyond the geographical boundaries for achieving continues success (Papastergiadis, 2013). However, it has also increased the challenges for businesses related to the differences in culture, linguistic, education, values, oral and ethics among the people living in different geographical region. In 1980, Australia has opened up its economy as it was suffering with high unemployment rate and declining economy. Introduction of globalization in Australia has allowed foreign business entities to enter into the market, which has created positive impact on the GDP growth rate (Lingard Sellar, 2013). Moreover, inclusion of foreign businesses has provided more job opportunity for the Australia people. Globalization has primarily influenced for prime Australian business sector including service, manufacturing, mining and agriculture. End of Protectionism: Zero sum game concept of trade was very much in practice in Australian economy from the beginning. Historically, the management of Australia has believed on the mercantilist concept of selling more and purchasing less from other economies. Moreover, Australian government has maintained restriction on foreign direct investment (FDI) as well (Glatzer, 2012). In fact, it has focused on trading its vast gold reserve and other natural resources. However, it has increased the rate of inflation and unemployment rate in Australian market significantly. In order to boost up the economical enhancement procedure, Australian government has no other option than utilize globalization phenomenon. As a result, the economy has withdrawn all the rules and restriction regarding the entering of foreign businesses within the economy. It has directly increased the standard of life of Australia domestic people. On the other hand, globalization has allowed foreign investors to invest more on Australia for g rabbing the major section of potential market. It has also created positive impact on the employment opportunity for the domestic people of Australia, as companies do not have to face too much restriction in including different advance process or technologies within countries. Thus, end of protectionism has allowed Australia to improve present condition of the economy in an effective manner. Shift in the Manufacturing Sector: As per the article by Dwyer et al. (2013), globalization has allowed economies to create labor-intensive jobs in the manufacturing process. Moreover, it has induced organizations to follow minimum pay guidelines in the manufacturing units, which reduced the adverse impact of low wage manufacturing processes. Over the past two decades, conventional labor-intensive sectors have undergone massive changes that displaced different industrialized economies gradually. Hence, it is reducing the advantage level of industrialized countries. Globalization has provided businesses the opportunity to transfer their production units in different countries where the cost of labor and other raw materials is relatively low. Therefore, most of the prime Australian organization has outsourced the production activities in different countries. The Australian organizations have used contract with low wage counties and FDI for retaining their competitive advantage in the global platform. As per Heckscher-Oh lin factor endowment theory, globalization has provided Australian economy the opportunity to import more labor-intensive products like footwear, textiles and paper from the countries like India, China, Indonesia, Thailand and Malaysia. This outsourcing practice has allowed Australian economy to minimize their human resources for more productive activities. As illustrated by Papastergiadis (2013) globalization has increased the popularity of high technology based manufacturing sector in Australian market. As a result, it has induced Australian people to focus on enhancing present level of knowledge and skills. Comparative advantage theory has described that international trade compel an economy to focus on specific production of products so that it can allow import of required amount of goods in an effective manner. Now, Australia has focused on developing knowledge based economy by producing and designing specific high tech products, which is likely to create positive impact on the manufacturing sector. For instance, outside USA, Australia has the largest Boeing operation and it is growing at a rapid rate in both sales and RD sector (Dwyer et al., 2013). Globalization has also allowed businesses to perform decentralized manufacturing activities for achieving success in the market. For instance, decentralization has allowed General Moto rs Holden to utilize Australian economy as a center of excellence for producing and designing Rear Wheel Drive (RWD) cars. According to QIU, YE SUN (2012) globalization has also provided the opportunity of using flexible accumulation technique in their production procedure. Now, flexible accumulation reflects subcontracting, downsizing, increasing use of temporary workers, decreasing weight of industrial sector that is minimizing the power of trade union and government regulations. Introduction of globalization has induced Australian economy to become more lean and flexible. As a result, it has allowed businesses more opportunity to reach to its niche market with the appropriate fulfillment of customers needs and wants. Therefore, it has allowed Australia to achieve continues growth in the production volume, which has eventually increased the rate of growth of the economy. Growth in the Service Sector: Globalization has also revolutionized the way service sector conducted their business activities. Presently, Australia represents one of the biggest mixed market economies across the globe. Service sector represents around 50% of the total Australian GDP, which is accounted close to 80 billion (Chan, He Wang, 2012). Australian service sector includes financial institutes, trade, wholesale, education, tourism and healthcare. Globalization has allowed Australian economy to achieve consistent growth that has also created positive impact on the businesses of the financial institution. Forbes has mentioned that 6 out of 10 biggest organizations in Australia are financial service providers or banks. Increasing use of financial services has allowed strong showing of the economy, which eventually created boom in the property market, strengthen consumer confidence and investment over the past two decades. Geographical position of Australia along with highly advanced financial sector has allo wed Australian firms to focus on different other Asian and European market for business purposes. Globalization has induced majority of the economies to relax most of the regulations related to international businesses. As a result, it has increased the mobility of capital across the countries in an effective manner. It has enhanced the growth rate of Australian financial institutions in a major way. For instance, Australian GDP has increased on an average of around 7% per year during the time 1970 to 1997. On the other hand, FDI increased by 31% and international trade increase by around 12% per year (Graves Shan, 2014). Global investment opportunity has enlarged the potential market for Australian financial institutions. In addition, it also reduces the risk associated with fluctuation in market rates and exchange rates. Globalization has allowed financial services to segregate the risk into different markets for achieving success in the market. In addition, globalization has allowed organizations to focus on enhancing their present IT infrastructure for providing higher quali ty of services (McDonald, Mayes Pini, 2012). Australian economy is very advanced and maintains close proximity with higher growth markets in Europe and Asia. Therefore, it has allowed Australian economy to include different advance tools in medical and healthcare facilities, which has created direct positive impact on the quality of living in the Australian market. Globalization has increased the growth of tourism sector significantly. Globalization has allowed foreign visitors to come in the country freely. It has allowed Australia to emerge as one of the biggest tourist destination of the entire world. Presently, estimated value of tourism industry is around 63.3 billion, which represent around 3% of total Australian GDP. Moreover, it has provided job to around 580,000 Australian people that reflects 5% of the total workforce (Jungmittag, Reger Reiss, 2013). Impact on Agricultural Sector: Traditionally, agriculture represents a prime major export element of Australia, as it endowed with favorable climate and large land area. Australian tariffs and subsidies have also contributed to the enhancement of agricultural sector. Now, increasing workforce in the knowledge and skill based sector has induced farmers to focus on developing more efficient agricultural for fulfilling the needs of the economy. As a result, it increases the demand for high quality seeds and other supplementary products associated with agricultural sector. Now, farming often requires bigger labor force, which has induced different developed countries to focus on import products for fulfilling their food needs. Globalization has provided Australia the opportunity to target those economies for conducting their export activities effectively. Moreover, it has allowed Australian government to invest more on RD of agricultural, which is necessary for maintaining competitive advantage in the market. Australi an government also has not protected the agricultural activities like Europe or UK market, as it can create challenges in exporting products consistently. Therefore, globalization has enhances the demand of Australian firms product significantly. Presently, Australian agricultural industry value is around $155 billion, which is close to 12% of the entire GDP (Schandl West, 2012). For that reason, several research institute and organizations has been formulated in Australia for achieving production efficiency even further. Therefore, the agricultural sector in Australia is likely to achieve consistent growth due constant increase in the production efficiencies. Improvement of Mining Sector: As per the article by Simas et al. (2014), globalization has also created massive impact on the business activities associated with the mining sector. The present usage of energy is not likely to slow down in near future. In fact, US Energy Information Administrator (EIA) has projected around 35% increase in the energy consumption by 2035 (McIntosh, 2012). Now, Australias global mineral resources possess relatively high supply concentration due to the favorable location. It is increasing the present level of prices for the mineral products. It has increased the needs of Australian mineral resources, which eventually increases the market potential significantly. However, mineral resources also create major environmental issues that Australian economy has accounted for achieving success in the global market. Moreover, the world is moving towards the coal-generated electricity. Therefore, it has increased the demand for Australian coal in the global market. Globalization has allowed Aus tralian Coal Association to target different foreign market for enhancing the revenue level of the industry (Alexeeva Anger, 2016). Presently, Australia is the biggest coal exporting country that has its presence in almost all across the globe. Now, increasing reach in the global market has induced Australian energy or mining sector to become technology dependent and high capital intensive (Ridoutt et al., 2014). Moreover, globalization has also allowed Australia to emerge as the major exporter of liquefied natural gas in the entire Asia Pacific region. Globalization has allowed this sector to achieve consistent growth in the global market activities. It has allowed all the prime energy organizations of Australia to operate all across the globe for enhancing the revenue level even further. For instance, globalization has allowed energy organizations like BHP Billiton to establish its presence in all parts of the globe (Reeson, Measham Hosking, 2012). Conclusion: The above illustration has highlighted the fact that globalization has completely transformed the way entire business activities are conducted in the market. It has created impact across sectors that allowed Australia to achieve continues economic growth in the market. Before introduction of globalization, Australian economy was struggling to provide desired life to all the citizens. However, globalization has allowed Australia to emerge itself as one of the strong economy in the entire market. It has allowed manufacturing sector to enhance their quality of production, which has reduced the requirements of energy sources. On the other hand, it has revolutionized the tourism and medical services in a massive way. In addition, it has also helped energy and mining sector of Australia to grow consistently. To conclude, it can be mentioned that globalization phenomenon has completely transformed the economical condition of Australia. References: Alexeeva, V., Anger, N. 2016. 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