International Business Essay

Q.2 a) Evaluate the assorted shipway in which Bata has interacted with foreign policy-making systems in its investments and trading operations abroad. autonomic nervous system Multi dry landal enterprises (MNEs) same Bata must ope commit in countries with diametrical semi governmental and legal conditions, so the political re deep on the foreign investments is very(prenominal) meaning(a). This paper explains this issue based on the Bata case in three take leaves. The runner part evaluates the contrasting ways in which Bata has interacted with foreign political systems in its investments and operations aboard. In the assist part, the advantages and disadvantages, which MNEs bring to their accompany and the host-country when doing foreign direct investment, be examine relating to the Bata case. And the last part gives a small analysis of the complex political impact on international traffic with quality to the political environment in habitual also supply the way of formulating in force(p) political system.* Batas effective organisational structure and managing style With activities in 60 countries, Canada-based Bata Shoe Organization has much working(a) experience both in genuine countries and create countries and jakes deal with distinguishable political systems. It has an effective arrangement structure, which consists of Bata special located in Toronto, Canada, acts as plate of the operating companies. Regional offices exist in Toronto, Mexico City, Singapore, Paris, Cal come downta and Harare. The International structure a de primevalised organization, where operating companies are independent businesses, swear by a global direction team. Private Ownership Bata shoe organization companies have also entered into a numeral of joint ventures, retail franchising and brand licensing agreements 1. By and cosmic Batas operations are independent units established in all(prenominal) country where the firm does business. As such , Bata is equal to(p) to decentralize control of its political strategygiving subsidiaries signifi give the bouncet autonomy in managing relations with their obeisanceive government. b) Should pizza pie chanty put much of its efforts in expanding in brazil- freak tree or nighwhere in S protrudeh East Asia? Why? ANS Pizza chanty, one and only(a) of the most common sustenance chains, opened their 10000Th shops in the Brazilian merchandise in 1994. Pizza army huts parent company is PepsiCo. PepsiCo was toil whatever to penetrate in Brazilian commercialize in various ways. However, the path was non as easy as assumed. Pizza shanty faced decline in the Brazilian market. Experts said that there were dickens probable reasons for this. One is Pizza huts little successful macrocosm of new products and the second is the low equipment casualty strategy of the competitors.However, Pizza Hut had a extravagantly hope to make Brazils their second or third study market becau se Brazil had many location special(prenominal) advantages corresponding urbanization, size, macrocosm, Gross National increase etc. Brazil endured erratic political situations since 1964. After a long force dictatorship, a stable political reclamation was done by the year 1997.Economically Brazil has a mixed history as come up. It has a very good sparing potential. It has access to several natural resources and well knit infrastructures. However, inflation affected the thriftiness very badly. Pizza Hut entered in Brazil in 1988, during the period of high inflation.It followed the practice of corporate franchise. Later, Pizza Hut bought some of the franchises. But still different problems arose like- difference in burnishs, cost of maintaining large pool of employees and of course inflation. Gradually, the inflation rate of Brazil normalized. People made more informed decisions and Pizza Hut began to flourish. However, in 1995, sales of Pizza Hut dropped. As a mean of count erattack, Pizza Hut took two different strategies. One was to cut the price by 25% and different(a) was to announce various sales connect decisions by mingling with local cultures like Samba dance. But both of the plans failed miserably. In these ways, Pizza Hut struggled to succeed in the Brazilian market.Q.3 a) what factors threaten Indias future tense combative positions in cashew addict productions? ANS Since the opening of chinawares doors to military man trade in the late 90s, it has become an emerging topnotch power. Hence, China whitethorn be a threat to Indias accepted competitive position in the cashew junkie production because it is also capable to support cashew processing with its abundance of tender-hearted resources, low-wage rates, and affirmable training in the manual adroitness required in the subsidy cashew glass production. China is soon benignant in new markets and providing barefaced manual labor to other manufacturing.With this, China can see that the increasing paid cashew nut industry and steady down to enter it because it has the capability to do so. Moreover, the current formulation of the European Union (EU) provides that its members pass up trade barriers for imports and exports between each other may be a possible threat to Indias United soil market. Since the UK can virtually import anything from its populate countries without any cost, it might affect the affect of cashew nuts the Europeans may detach their attention from cashew nuts to other products popular in its neighboring countries. Indias competitiveness could also be endanger by the increased Research and discipline improvement that countries worldwide are engaging in nowadays. Brazilians (Indias most owing(p) competitor in the cashew nut industry) may possibly find machinery that can be substituted for the needed hand dexterity for the flavor that Indias cashew nut has.b) Should the United States render to tighten the scotch grip on cube? If so, how should it be done? ANS U.S. should not seek to tighten economic grip on Cuba as it is already a lame economy as compared to U.S. cod to the political environment of the country for the past a few(prenominal) decades. For U.S. industries and companies Cuba is a very potential market. alike the workforce is efficient, so there is a possibility of efficient labor at lower cost for U.S. industries. Also, other countries of the world started favoring Cuba and also doubted the rationale of U.S. on elevated the embargo.1. Attitude An billet may be defined as a intimate disposition to behave in a consistently favourable or admonishing way with respect to a precondition object (Schiffman and Kanuk, 2000). Stated differently, it positions people into a frame of mind of liking or disliking things, of moving toward or away from them (Kolter and Armstrong, 2008 p144). It is admit that people have military strengths toward almost everything religion, politics, clothes, mus ic, food (Kotler, 2003).For instance The demand for behavior amends in a country may be affected by the unique(p) culture of the country to the extent that it affects the populations risk aversion (Douglas and Wildavski, 1982). Henderson and Milhouse (1987) deliberate that an individuals religion can provide an insight into the individuals behaviour and understanding religion is an important component of understanding a nations unique culture. Also, Zelizer (1979) notes that religion historically has provided a strong source of social opposition to life redress as many religious people opine that a reliance on life restitution results from a distrust of gods protecting care. But historically, some form of friendly amends existed in Nigerian and Africa society long earlier the introduction of the modern insurance in Nigeria (Osoka, 1992).These accessible schemes evolved through the existence of encompassing family system and social associations such as age grades, and other unions. The simplest form of the social insurance was practiced by agency of providing cash donations, materials or sometimes make collective labour to assist members of broad family and members of social or communal associations who match a mishap.2. Lack of Knowledge of restitution Culture In a late(a) study of quality of life in developing countries with reference to South Africa (Moller, 2004), income and social security (own wages, ability to provide for family, insurance against illness/death and income in obsolete age) have been treated as one of the major(ip) indicators of quality of life. This standpoint stresses the conditional relation of insurance to human life. Ironically, insurance run seem not to have been so accepted enthusiastically in developing countries. The abysmal level of insurance culture in developing economies has attracted relative interests among researchers and practitioners alike. happen has been identified as a central fact of life in th e plain areas of less-developed countries (Udry, 1994). Some of the problems associated with this have been marketing. For example, Omar (2005) assesses consumersattitudes towards life insurance patronage in Nigeria and found out that there is pretermit of trust and assumption in the insurance companies. Other major reason for this attitude is insufficiency of association about life insurance product.3. measly Level of Education Educational stead of Nigerians has crucial influence on their attitude towards insurance. Educated people have more positive attitude to insurance than less educated ones. In a recent insurance conducted in Lagos, Nigeria. The choice of Lagos is due to its nature as a metropolitan city where most Nigerian ethnic groups are largely represented. Fact shows that respondents with high(prenominal) education outperformed others even though no statistical real difference was spy with vocational education.4. Unemployment Issue Employees working status h as a significance effect on Nigerians attitude towards insurance. Retired and Employed Nigerians with means attitude scores of 28.50 and 28.14 respectively outperformed their competitors. No significant difference was observed between retired, industrious and Self-employed respondents. On the other hand, freelance people have significantly higher attitude towards insurance than unemployed, student and part time workers. This result is quite comparable to findings in most developed world.In Conclusion, The findings of this study suggest some major implications for marketing of insurances service in Nigerian businesses environment which is a big market. habituated that attitude is strongly linked to behaviour, marketers of insurance services targeting Nigerians are confronted with the challenge of boost people to embrace insurance innovation and its associated benefits. Based on the findings, this article confirms veto attitudes of Nigerians to insurance services further.But as under from this broad finding in respect of the negative attitudes to this line of business, this study suggests some circumstantial findings based on different demographical factors of the respondents. The findings serve as inputs to marketers of insurance services on how they formulate and implement applicable marketing strategies towards addressing the nonchalant attitude of Nigerians to insurance. For instance, specific marketing strategies are required to come along the young generation below 46 years of age, the divorced/separated, and the less-educated to embrace and think the role of insurance. Since, the basic issue associated with this lack of interest rests mainly in their lack of appreciation of the roles of benefits of insurance services it is recommended that significant marketing communication activities with instant wages to both marketers be targeted more at this set of people highlighted. This will armed service to kindle their interest in the business and br ings the insurance institution to the highly luxurious position it belongs in their perception.