Monday, September 29, 2008

International Business (1)

Economic cycle (GDP): -> capital -> business ->job, wage, product -> consumption -> profit ->capital
Interference: corruption, military/government expenditive, low productivity, low wage, protectionism

PEST
political issues, legal. -- stability, risk, laws
economic issues -- GDP,GNP, growth trend, per capita GDP, income, infrastructure, inflation, exchange rate
social issues -- culture
technology

Motives for globalization
global imperative, strategy imperative
--to leverage core competencies
--to acquire supplies and resources
--to seek new market
--to better compete rivals (economic of scale, standard for industry)
Environment change
--changes in politics of the world
--technology changes

Concept of Free Trade Association
--remove barriers
--weak perish
--strong get stronger
--overall productivity goes up
--consumer win
--country becomes a global competitor

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