International Business Task
There is no doubt that our expansion to Asia could be one of the most successful decisions made by the company. American market is already divided among top companies in the care products industry, and the only solution for our company is to move production to markets which are not completely explored yet. Many experts currently mark that centres of power and currently shifting to Asia, and our company can greatly benefit from globalization.
Zelade (1996) states that in the following years Shanghai, Hong Kong and Beijing are going to become the top city attractions for multinationals, leaving current top cities, such as London and Paris, far behind. According to Chang et al. (2001), Drobis (1996); Nair (1996); Shaw, Woetzel (1992); Wu (2002); Zelade (1996), Asia is becoming one of the most attractive destinations for foreign investments due to its rapidly increasing population, high rates of annual GDP growth, entrance of WTO by most countries, positive changes in the legislation in the past years.
It is true that to some extent, the poorest nations do not have a chance to enjoy the benefits of globalization because they are exploited by multinationals. However, poor countries do benefit from globalization greatly. For example, they get new employment opportunities which would not appear otherwise. Most of the companies expanding globally use resources of the country in which they locate their plants and thus local suppliers can benefit from that greatly.
For instance, UK’s largest supermarket Tesco is well-known for widely using products of local suppliers in its international locations. Globalization does not destroy the cultures of different countries; it only helps to develop them. When Tesco expanded to Thailand, all of its stores were breathing with Thai culture. Even though Tesco’s managers applied Western management principles in the stores, they were proud to reflect Thai traditions in their stores.
In our company, it would be very wise to follow the example of Tesco which expanded globally in order to increase its market share. By expanding to Asia and buying stakes in European companies, we are going to become much more competitive in the world market. Globalization is going to have a positive impact on the performance of the company.
Bibliography. 1. Chang Ludwig M. K. , Hiu Alice S. Y. , Siu Noel Y. M. , Wang Charlie C. L. An Investigation of Decision-Making Styles of Consumers in China. Journal of Consumer Affairs. Volume: 35. Issue: 2. 2001.
2. Drobis David. Chinese Consumers: The Riches beyond the Wall. Public Relations Quarterly. Volume: 41. Issue: 1. 1996. 3. Nair S. R. Doing Business in China: It’s Far from Easy. USA Today. Volume: 124. Issue: 2608. 1996. 4. Shaw Stephen M. , Woetzel Jonathan R. A Fresh Look at China. The McKinsey Quarterly. Issue: 3. 1992. 5. Wu Xu. Doing PR in China: A 2001 Version- Concepts, Practices and Some Misperceptions. Public Relations Quarterly. Volume: 47. Issue: 2. 2002. 6. Zelade R. Information Security Market Booms. International Business. October 1996.