Managers have to consider the relative advantages of globalization and regionalism when developing strategies for global businesses. They must formulate and implement appropriate strategies to ensure that operations are successful. Write a concept paper in which you formulate a strategy for going global within two different regions of the world. Select two larger geographic regions and specify certain countries within each. Discuss the following important issues:
* Benefits of investing in the chosen countries
* Impact of any bilateral relationships, multilateral arrangements, and regional agreements between the two countries
* Entry strategies (Exporting, licensing, franchising, contract manufacturing, turnkey operations, management contracts, joint ventures, and fully owned subsidiaries)
* Implementation of strategy in the new subsidiaries
* Concept of equality in the workplace
* Behavioral expectations from minority members in these regions
* Impact of technology on minorities in these regions
* Influence of individualism and collectivism on workers' behaviors in these regions
For the purpose of this assignment, I will chose two emerging regions of the world, Latin America and South Asia. The South Asian region comprises primarily of countries in the Indian subcontinent, including India, Pakistan, Sri Lanka, etc. The Latin American region comprises primarily of countries like Brazil, Venezuela, etc. The two regions are one of the most attractive investment destinations across the world.
-Benefits of investing in the chosen countries:
As we know that both Brazil and India are considered to be one of the fastest growing and largest emerging markets across the world, the major opportunity due to investing in these countries is access to a huge, growing population in these countries with rising disposal income and buoyant economy, favorable government policies, increasing foreign direct investment and booming capital markets. Both India and Brazil have emerged as a strong recipient of FDI in several industries.
The outsourcing boom has really given a strong boost to the Indian economy in the last decade and has establish the nation as a lucrative investment destination for companies that not only wish to sell their products, but establish their manufacturing or service operations. The country offers English speak, highly skilled labor at lower costs and thus, companies find it lucrative to establish their back office, R&D or even manufacturing operations in India. The case of Brazil is also similar. The country has emerged as one of the hottest emerging markets and companies are running to this nation to set up their operations and take advantage of the growing economy.
Further, these two nations offer strategic base for companies looking to spread their operations in the entire region. Organizations can set up their strategic manufacturing or distribution base in these two nations to spread their wings in nearby countries in the region.
Many global companies are taking advantage of the outsourcing benefits offered by these two countries. For North American firms, India offers lower costs and act as a perfect offshoring destinations whereas Brazil act as a perfect nearshoring destination by offering cost advantages along with proximity to US time zones.
-Impact of any bilateral relationships, multilateral arrangements, and regional agreements between the two countries
Several bilateral trade agreements have been signed between Brazil and India to boost trade relationships between the two countries. As both countries have emerged as strong emerging markets, it has become imperative for these two nations to collaborate in different areas for boosting bilateral trade. The leaders of two nations have recently entered into agreements for collaboration in trade as well other areas such as knowledge sharing, public heath and education, defense of democracy, etc.
The efforts made by the leaders of these two nations is a positive signal for the future bilateral trade between two nations. Hence, the bilateral trade between the ...
Managers have to consider the relative advantages of globalization and regionalism when developing strategies for global businesses. They must formulate and implement appropriate strategies to ensure that operations are successful. Write a concept paper in which you formulate a strategy for going global within two different regions of the world. Select two larger geographic regions and specify certain countries within each.