review_for_ib_test_4

review_for_ib_test_4 - Review for test 4 Videos: Honda- 80%...

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Review for test 4 Videos : Honda- 80% cars sold in USA are made in the USA. Plant in Ohio. 1 st Japan manufacture in USA. Model of FDI, Horizontal FDI Volvo in Brazil - Swedish based company. Why?- government policy restrictions on imports. Trying to decentralize manufacturing from Rio Degenerio to Curituba. Incentives- tax incentives cheap land well developed infrastructure, skilled qualified labor, airport, port. Manufacture trucks busses and yellow machinery (heavy construction). 1 st bus system in the world took place of subway, set a business model for public transportation systems. Created new opportunities for Brazil. McDonalds video - 115 countries most popular/ successful in world. Same quality every where you go, become a part in local life in a new country. India Challenges- no beef on menu had to adapt to local culture. Serves fish chicken lamb, veggie nuggets/burgers. Lack of technology and infrastructure in India. Used local suppliers, labor, and advertising. This bypassed tariffs by localization. Also gained national support, increased quality of farmers, boosted local economy, kept production local. What’s it worth-Dollar - 1920’s dollar had gold value. Cuts system out because of lack of flexibility, moved away from gold devaluation of dollar. 1 st time didn’t work, 2 nd time it did. Gretten Woods conference, talked about gold standard, beginning of new strategies. FDI-
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review_for_ib_test_4 - Review for test 4 Videos: Honda- 80%...

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