Bangladesh University Of Professionals
Assignment
Course: International Management
Submitted To Submitted By
D. Sumaya Begum Dewan Ashikul Alam
Assistant professor ID- 18241101
Department of Management Sec- A
Faculty of Business studies
Bangladesh University of Professional
How has globalization affected different world regions? What are some of the benefits and
costs of globalization for different sectors of society (companies, workers, communities)?
Globalization implies growing commerce on a world-wide level, particularly presently with
the web and exchange alternatives. It is much less demanding presently for companies to have
competition on an worldwide scale. Globalization is additionally making
companies increment their competitive advantage and lower their working costs, making
them deliver more different items and expanding their advertise share in numerous areas. A
few financial specialists say that globalization is useful for companies, others say it as it
were benefits the more grounded businesses and nations and clears out the littler and
poorer nations behind, making their commerce and exchange indeed less than some time
recently. It has a negative point also that it puts domestic industries in some country in danger
due to advantages of the same industry in other countries, because small companies are not able
to compete with the bigger ones and usually fail when they try. Globalization has many benefits,
some of them are increasing communication and transport improvement by reducing the barriers
between countries, increased free trade, movement of labours, growth of multinational
companies, and many more. Globalization urges organizations to adjust to various systems in
light of new ideological patterns that attempt to adjust rights and interests of both the individual
and the group overall. This change empowers organizations to contend worldwide and
furthermore means a sensational change for business pioneers, work and administration by
authentically tolerating the support of specialists and government in creating and executing
organization approaches and systems. Hazard lessening by means of broadening can be
proficient through organization association with global money related foundations and banding
together with both neighbourhood and multinational organizations. Creation is progressively
specific. Globalization empowers merchandise to be delivered in various parts of the world. This
more noteworthy specialization empowers bring down normal expenses and lower costs for
customers.
2. How has NAFTA affected the economies of North America and the EU affected Europe?
What importance do these economic pacts have for international managers in North
America, Europe, and Asia?
Answer: NAFTA so far seem to be both bad news and good news. There is evidence that it has
caused a number of jobs and capital to shift from the more economically advanced nations
(particularly the U.S.) to Mexico. On the other hand, once Mexico gets back on its feet after its
economic woes of recent years, there is evidence that, in the long run, the agreement will benefit
all North American nations because it will create increased efficiencies, more purchasing power,
and overall a more economically powerful North America. The EU has made significant progress
over the past decade in becoming a unified market. In 2003, the EU consisted of 15 nations and
has since, gained 13 additional nations. Not only have most trade barriers between members been
removed, but a subset of European countries has adopted a unified currency called the euro.
These economic pacts will force international managers to stay current on all trade regulations,
economic activity, and status. Different economic systems characterize different countries and
regions.
3. Why are Russia and Eastern Europe of interest to international managers? Identify and
describe some reasons for such interest.
Answer: Russia and Eastern Europe are of interest to international managers because they
present an opportunity to get in on the "ground floor." Even though these countries have
struggled with the transition to a market economy for several years, MNCs that are willing to
take the substantial risks involved with operating in these countries may find substantial rewards
in years to come. However, investment in Russia and Eastern Europe may not produce
immediate returns. It may be years, perhaps even decades, before some investments become
profitable.
4. Many MNCs have secured a foothold in Asia, and many more are looking to develop
business relations there. Why does this region of the world hold such interest for
international management? Identify and describe some reasons for such interest.
Answer: Asia has been of interest to MNCs because of the tremendous growth in this region in
the last decade. Although the growth has been uneven, Japan, Hong Kong, Taiwan, Singapore,
South Korea, emerging Southeastern Asian countries such as Malaysia, the Philippines,
Singapore, Brunei, Thailand, Cambodia, Myanmar, Vietnam, and especially China, continue to
present numerous investment opportunities. A large population base, relatively inexpensive
labor, and natural resources have been the important reasons for investments in this region.
5. Why would MNCs be interested in South America, India, the Middle East and Central
Asia, Africa, and the less developed and emerging countries of the world? Would MNCs be
better off focusing their efforts on more industrialized regions? Explain.
Answer: Each of these regions has its own characteristics, which may be attractive to certain
multinational corporations. South America has a trading bloc (Mercosur), India has a huge
population base and considerable untapped potential, the Middle East has enormous oil wealth,
and Africa has a tremendous supply of natural resources. Of course, all these regions are beset by
some significant problems. Multinationals considering investment in the less-developed and
emerging countries must carefully weigh the risks and benefits of operating in these regions.
6. MNCs from emerging markets (India, China, Brazil) are beginning to challenge the
dominance of developed MNCs. How might MNCs from North America, Europe, and
Japan respond to these challenges?
Answer: Many obstacles are faced by multinationals when attempting to enter emerging markets
such as India, China, or Brazil. MNCs must be persistent when dealing with these governments.
One response is to help these countries realize that foreign investments have a positive effect on
the economy. Another alternative would be to threaten to invest the money in another economy.
