Global Business

Global Business - * * * Competing in Global Competing...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: * * * Competing in Global Competing Markets Markets * * * The Dynamic Global Market World Population by continent: ** The U.S. is the largest importing nation in the World! 3-2 * * * Growing World Population 12 10.8 10 In Billions 8 6 5.3 8.5 6.0 6.5 1998 2010 4 2 0 1990 2030 2060 Source: Population Reference Bureau Source: 3-3 * * * Why Trade With Other Nations? Other No • No nation can produce all its needs its Mutually • Mutually beneficial exchange exchange Natural • Natural Resources or Technology- Produce or Buy? Buy? 3-4 * * * Global Competitiveness Country Strengths United States Technology, R & D Spending Finland Univ. Enrollment, Efficient Legal Univ. System, Business Ethics System, Taiwan Cell-phone Ownership, Cell-phone Tech. Innovation, Tech. Local Firms Competitiveness Singapore Savings Rate, Math/Science Savings Education, Political Trust Education, Sweden H.S. Enrollment, Press Freedom, H.S. Phone Access Phone 3-5 * * * Leading Goods Exporters/Importers Exporters/Importers In Billions $ Country United States Germany Japan France United Kingdom World Total Source: Wikipedia, 2005 Exports 928 928 1016 1016 539 539 443 443 374 374 9,099 Imports 1,476 717 402 420 439 8,823 3-6 * * * Strategies for Reaching Global Markets Reaching • Licensing • Exporting • Franchising • Contract Contract Manufacturing Manufacturing • • Joint Ventures & Joint Strategic Alliances Strategic • Foreign Direct Foreign Investment Investment Joint Ventures 3-7 * * * Most Spoken Languages 1% 4% 3% English 11% Spanish Other IndoEuropean Asian and Pacific Island Other Most Spoken Languages in the U.S. 81% 22% Most Spoken Languages in the World Mandarin Chinese Spanish English 7% Hindi 8% Portuguese 13% Source: 2005 CIA World Factbook 37% 13% Other 3-8 * * * Foreign Direct Investments in the U.S. Investments 1200000 1000000 800000 600000 400000 200000 0 Europe Latin America Asia Canada Source: Bureau of Economic Analysis, 2004 3-9 * * * World’s Largest MNCs 1) Wal-Mart Stores Wal-Mart 2) Exxon Mobil Exxon 3) General Motors General 4) BP BP 5) Ford Motor Ford 6) Daimler Chrysler Daimler 7) Royal Dutch/Shell Royal 8) General Electric General 9) Toyota Motor Toyota 10)Mitsubishi Source: Business Week; Morgan Stanley Capital International; and S&P Compustat Revenue ($Billions) Revenue 217 217 213 213 175 175 174 174 162 162 136 136 135 135 125 125 121 121 112 3-10 * * * What’s On Your Pizza • • • • • • • Costa Rica - Coconut France - Bacon, onion and fresh cream India - Pickled ginger, minced mutton and tofu Australia - Shrimp and pineapple Pakistan - Curry Brazil - Green peas Japan - Squid and mayo jaga Source: World Features Syndicate 3-11 * * * Forces Affecting Trading in Global Markets in • Socio-cultural • Economic & Financial • Legal & Regulatory • Physical & Environmental 3-12 * * * Cultural Differences Cultural in Global Markets in • • • Language Language Social • Social Religion Religion • Aesthetics Values & Attitudes Attitudes Structure Structure Personal • Personal Communication Communication 3-13 * * * Did You Know? • In Turkey it’s rude to cross your arms In rude while you are facing someone. while • In the Arab world the left hand is In considered unclean; don’t eat with it! don’t n • IIn India never pat someone’s head, it’s the seat of the soul. seat The • The Chinese associate gifts such as straw sandals, clocks and handkerchiefs with funerals. funerals. 3-14 * * * U.S. Oil Imports Canada 18% 33% Mexico Venezuela 15% 12% 12% 10% Nigeria Saudi Arabia Other Source: Gibson Consulting 2005 3-15 * * * Legal & Regulatory Forces 1. IInconsistent Laws & nconsistent Regulations Regulations 2. Foreign Corrupt Foreign Practices Act of 1978 Practices 3. Local Business Contact Local Required Required 3-16 * * * Developing Countries Need Infrastructure Need 1.2 • 1.2 billion people lack clean drinking water drinking • 2 billion people lack electricity lack billion • 3 billion people lack adequate sanitation adequate 3-17 * * * Pro’s & Con’s of Pro’s Offshore Outsourcing Offshore Pro’s Con’s • More focus on areas More where they can excel and grow grow • Jobs lost/wages fall • Reduces product quality • Outsourced work creates Outsourced efficiencies, resulting in hiring more workers hiring • Communication Communication becomes much more difficult difficult • Fuels global market Fuels growth growth 3-18 ...
View Full Document

This note was uploaded on 02/01/2012 for the course BUS 10 taught by Professor Rajsingh during the Spring '11 term at UC Riverside.

Ask a homework question - tutors are online