Friday, February 10, 2012

International business

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globalization of market is very important to our study of international business. for instance, consumer preferences for some products are converging around the world. SONY, NIKE, The GAP, CALVI KLEIN, COCA-COLA, and Mc Donalds are just a few companies that sell so-called global products-products marketed in all countries essentially without any changes. sometimes they make small modifications to suit local tstes. in southern Japan, for example, COCA-COLA sweetened its traditional formula to compete with sweeter-tasting Pepsi. in India, were cows are sacred and the comsuption of beef taboo, Mc Donalds markets the Maharaja Mac-two allmutton patties on a sesame-seed bun with all the usual topping.

GLOBALIZED PRODUCT ACTIVITIES. Today, many production activities are also becoming global. technology allows any products to be made practically anywhere it is cheapest to do so. Local, regonal,and national governments offer firms various incentives to construct factories, but can bring unemployment to another if, as a consequence, a factory in that location is closed.

For example, competing business hubs in Asia-such as Kuala Lumpur(Malaysia),Singapore, Shangai, and the Philippines Subic Bay-routinely entice global companies with favorable tax deals and subsidized rents and worker training.

The philippine government, once notorious for tying up investors from other countries in reams of red tape, recently paved the way for Federal Express and three other carrier to transform the former U.S naval base at Subic Bay into an Asia hub.

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The local government explains one FedEx official, wanted to make us a tenatant at Subic Bat. that have a big influence on the decision.

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