Adaptation, aggregation, and arbitrage strategy are used to create value globally. Adaption strategy is the most used global strategy. Adaptation strategy refers to a company meeting local requirements or preferences. Considering the variety of all parts of the world, adaptation is essential globally.
Tag Archive 'globalization'
Industry clustering occurs because of geographical natural advantages such as a certain climate or an abundance of a certain resource. However, industry clustering also occurs because of relative advantages, which the industry itself creates organically through economic forces. Interdependencies develop between facilities, customers, suppliers, technology, and labor markets.
The Penn State Center for Global Business Studies has identified 12 global trends that are shaping the business environment. These trends are far-ranging and impact every facet of life on Earth, whether that be social, technological, or environmental. These “global tectonics” — so named for their slow, unyielding progress — are large enough to affect not just individual companies, but entire industries. Although the center identified these 12 trends as challenges facing businesses over the next 30 years, the companies that turn these challenges into opportunities will be the most successful.
Culture Shock is a very real dilemma and can impact expatriates in any country. Cultural training should be the number one priority for any employee planning to live overseas. Even cultures that share similarities can be shockingly different when the unwary are fully emerged. Cultural training should focus not only on making the expatriate aware of cultural differences, but also train them how to navigate the differences. Additionally, language training is very important for anyone working in a company where the language is different. Even if the company uses English (in the case of a US company) as a primary language, if the rest of the country uses something different, the future expatriate must be ready.
Back-to-back loans are a way for new international subsidiaries to gain access to loans that they may not have established the credit for yet. In this situation, the parent company uses a bank that has locations in both the home country and the country of the new subsidiary. The parent company places money with the bank in the home country. Subsequently the foreign branch of the bank then loans money to the international subsidiary, using the money on deposit with the home branch as collateral.