Lecture 6: The Global marketplace The Competition Far east Japan -fully integrated products and services China with Hong Kong increase gdp by 23% Korea-autos. steel. electronics laiwan -electronics
Lecture 6: The Global Marketplace • The Competition – Far East • Japan - fully integrated products and services • China with Hong Kong – increase GDP by 23% • Korea - autos, steel, electronics • Taiwan - electronics
The Global Marketplace(cont The Competition(cont South-East asia Singapore- fully integrated products and services Major developing nations Thailand, malaysia, Indonesia Africa · South africa Major develoing nations Mauritius. Botswana
The Global Marketplace (cont.) • The Competition (cont.) – South-East Asia • Singapore - fully integrated products and services • Major developing nations – Thailand, Malaysia, Indonesia – Africa • South Africa • Major develoing nations – Mauritius, Botswana
The Global Marketplace(cont The Competition(cont Western Hemisphere Major developing nations Mexico, Costa Rica, Chile, Brazil, argentina El urope Traditional developed countries England, France, Germany, Sweden, Italy, pain, etc Newly emerging countries: Hungry poland etc
The Global Marketplace (cont.) • The Competition (cont.) – Western Hemisphere • Major developing nations – Mexico, Costa Rica, Chile, Brazil, Argentina – Europe • Traditional developed countries: – England, France, Germany, Sweden, Italy, Spain, etc. • Newly emerging countries: Hungry, Poland, etc
The Global Marketplace(cont The Trade Partnerships North American Free Trade Association (NAFTA) Latin American Free Trade Association (LaFTA South american Free Trade Association(MERCOSUL European Union (Eu) Association of South-East Asian NationS (ASEAN)
The Global Marketplace (cont.) • The Trade Partnerships – North American Free Trade Association (NAFTA) – Latin American Free Trade Association (LAFTA) – South American Free Trade Association (MERCOSUL) – European Union (EU) – Association of South-East Asian Nations (ASEAN)
The Global Marketplace(cont Global Planning Significant external issues international companies have to confront in planning global operations political instability and risk currency instability competition from state-owned enterprises pressures from national governments accusations of disrupting national economic plans accusations of inappropriate technology transfer
The Global Marketplace (cont.) • Global Planning – Significant external issues international companies have to confront in planning global operations. • political instability and risk • currency instability • competition from state-owned enterprises • pressures from national governments – accusations of disrupting national economic plans – accusations of inappropriate technology transfer
The Global Marketplace(cont Significant external issues(continued) nationalism imposed restrictive policies against foreign owned companies Import controls local equity requirements limitations on repatriation of profits and di IvIdends
The Global Marketplace (cont.) – Significant external issues (continued) • nationalism – imposed restrictive policies against foreignowned companies • import controls • local equity requirements • limitations on repatriation of profits and dividends
The Global Marketplace(cont Significant external issues(continued) patent and trade protection intense competition from non usa global corporations
The Global Marketplace (cont.) – Significant external issues (continued) • patent and trade protection • intense competition from non USA global corporations
The Global Marketplace(cont) Global Strategy -Glocalization: think globally and act locally with an optimal mix of parental control when necessary and local initiative where required Glocalization of management giving regional and subsidiary managers the freedom to develop their own plans consistent with local cultural, political, economic, and legal demands
The Global Marketplace (cont.) • Global Strategy - Glocalization: think globally and act locally with an optimal mix of parental control when necessary and local initiative where required. – Glocalization of management • giving regional and subsidiary managers the freedom to develop their own plans consistent with local cultural, political, economic, and legal demands
The global Marketplace(cont Global Strategy -Glocalization(cont Glocalization of foreign affiliates strong presence in a foreign market requires the hysical presence of manufacturing facilities in the market itself Glocalization of exports using foreign production plants as export bases to regional markets is another way to become a focal t ompany in a foreign country(s)
The Global Marketplace (cont.) • Global Strategy - Glocalization (cont.) – Glocalization of foreign affiliates • strong presence in a foreign market requires the physical presence of manufacturing facilities in the market itself. – Glocalization of exports • using foreign production plants as export bases to regional markets is another way to become a 搇ocal 攃ompany in a foreign country(s)
The Global Marketplace(cont Global Strategy -Glocalization(cont Glocalization of products to the extent that standardization is possible Glocalization of production companies are splitting up the production process and farming out parts of it to different countries in order to take advantage of lower costs, international specialization, and proximity to ultimate markets
The Global Marketplace (cont.) • Global Strategy - Glocalization (cont.) – Glocalization of products • to the extent that standardization is possible – Glocalization of production • companies are splitting up the production process and farming out parts of it to different countries in order to take advantage of lower costs, international specialization, and proximity to ultimate markets
