Mark 462

Mark 462
IBUS/MARK 462 SECOND EXAM – WINTER 2013 STUDY QUESTIONS A. Definitions–four will be chosen for the exam Transaction exposure:
The extent to which income from individual transactions is affected by fluctuations in foreign exchange values. Balance–of–trade equilibrium: Reached
when the income a nation's residents earn from exports equals money paid for imports. Spot exchange rate: The exchange rate at which a foreign
exchange dealer will convert one currency into another that particular day. Carry trade: A kind of speculation that involves borrowing in one currency
where interest rates are low, and then using the proceeds to invest in another currency where interest rates are high. Forward exchange: when two
parties agree to...show more content...
The EU is not an optimal currency area, with different country economies. Thus, countries may react differently to external economic shocks, seeing
as Europe is not fiscally integrated. Also, a change in the euro exchange rate that helps one country may hurt another country. Furthermore, the strong
Euro makes it harder for the Euro zone exporters to sell their goods. Why is it in difficulty now? In 2010, the financial crisis in Greece rocked the
value of the euro. This was brought on by a decade of free spending by the Greek government, which ran up high level of debt to finance extensive
spending in the public sector. They misled the international community about the level of its indebtedness, shattering any faith that international
investors had in Greek economy. The main concern at that point was that the Greek government would not be able to refinance their 20 billion euro
debt. There was further concern that they did not have the political willpower to make the large cuts in public spending necessary to bring down the
deficit to restore investor confidence. Moreover, Spain, Portugal and Ireland also had large debt loads, with soaring interest rates on their bonds as
investors sold out. 2 possible outcomes 1) Default and devalue: any euro–zone country that hinted at leaving the currency would trigger a devastating
run on its banks as depositors rushed to more their funds to safer locales. 2) Deeper integration: stronger countries
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International Trade Midterm Study Guide
Part I – Midterm
Ch 1 1.Does exposure to competition with the world leader in a particular industry improve a firm's productivity? Discuss in detail by providing
sound arguments to support your choice of response. A world leader is ac company which can own the maximum market shares or which can have a
market position because of the part of the services or the products. Now if the new comer or any other company bench mark itself against the work
leader consequently it will try to improve the efficiency and productivity in comparison to principal company which ultimately enhances the company's
performance. 2.What are the essential arguments in favor of free trade and against free trade? Favor Free Trade
–Law of comparative...show more content...
Which is cost difference determines the patterns of international trade. Absolute advantage is trade benefits when each country is at least cost
producer of one of the goods being traded. In the 1800s, David Ricardo developed the theory of comparative advantage to measure gains from trades.
This theory is based on comparative advantage and it states each nation should specialize in production of those goods for which its relatively more
efficient with a lower opportunity cost.
I believe comparative advantage is the most consistent way of measuring gains from international trade. The reason is both countries can gain from
trade if both country work toward an equilibrium. Ch 3 4.Explain how immigration and trade may worsen wage inequality, and how college education
may mitigate against that.
Increased trade could worsen income distribution across the world. When you bring in immigrants into countries the low–skill labor force grows and if
Trade tends to increase the demand for skilled workers relative to unskilled workers, thus worsening wage inequality. Immigration of unskilled
workers decreases the supply of skilled workers relative to unskilled workers, thus worsening wage inequality. Alternatively, college education
increases the supply of skilled workers relative to unskilled workers, thus reducing wage inequality 5.How does Staffan Linder explain world trade
patterns? To what extent is his concept applicable to

International Business Essay
International Business
1.International Business is a transaction between two or more countries and is primarily based in a single country, but acquires some meaningful
share of its resources or revenues (or both) from other countries. It comprises a large growing portion of the world's total business. Although it's
riskier and more expensive it allows for greater variety on different products and services at lower prices.
Domestic Business is a transaction within the home country; it acquires all of its resources and sales, and all of its products or services within a single
country. A well functioning domestic economy will allow for smooth operations for International Business.
The difference between international and domestic...show more content...
Imports and exports are a form of international business that can affect a countries purchasing power.
When a company engages in international business to acquire resources they search for raw materials, products, and services that are not available in
the home country. A finished product that a company produces may have a combination of products shipped from several countries. For example,
diamonds shipped from Sierra Leone are made into the finished product of high priced earrings, rings or bracelets. However, some countries aren't
aware of the acts, behaviors, and practices that take place in an underdeveloped country to acquire a resource for them. Where as domestic operations
are monitored by the home country.
When a company wants to minimize risk it seeks foreign markets to take advantage of the fluctuating business cycle. For example, the product life
cycle displays the rise and fall of a product. The stages are birth, growth, maturity, and decline. This cycle may take place for a particular product
during different times and different locations. Therefore, if a product dies or a country goes into recession, profits can be recouped in another market.
Exporting means to make a product in a company's domestic marketplace and selling it in another country. To increase revenues is the number one
reason companies export goods, it's also less risky than foreign direct investment. Exporting is good for a countries economy moreover; it

Strategy and Structure of International Business (Part 2), summary Firms expand on international level to increase their profitability. In order to
maximize that profitability they must adapt their strategy to the structure and business environment. During this unity, I lean haw a firm can be
organized and how it can choose the appropriate strategy according to its structure and environment. Also, I lean the different possibility of expansion
which a firm can take and the advantages and risks of each possibility. In the paragraphs bellow, I present what I understand about organization of
international business, the entry strategy in a foreign market and the exportation and countertrade. The Organization of International Business
Organizational architecture is the structure of the organization, which include organizational structure, control systems and incentives and processes,
organizational culture and people. An international business can be organized in three different dimension. A vertical differentiation, which
emphasizes on where decision are made, a horizontal differentiation, which concerns the formal division of the organization and in the integrating
mechanisms which focuses on the coordination of subunits. Based on the way a firm it organizes, a manager should identify which strategy is
appropriate to its organizational structure. For instance a manager could choose a decentralization with core competency more centralized for a vertical
differentiation

International business contains all business transactions private and governmental, sales, investments, logistics, and transportation that happen between
two or more regions, nations and countries beyond their political limits. Generally, private companies undertake such transactions for profit
governments undertake them for profit and for political reasons. It refers to all those business activities which involve cross border transactions of
goods, services, resources between two or more nations. Transaction of economic resources includes capital, skills, and people. for international
production of physical goods and services such as finance, banking, insurance, and construction. A multinational enterprise (MNE) is an organization
that...show more content...
After that came the British East India Organization in 1600 and afterward the Dutch East India Organization, established Walk 20, 1602, which
might turn into the biggest organization on the planet for almost 200 years. In the United States, for example, almost 90 percent of firms that
export employ fewer than 100 people. They also account for more than 20 percent of U.S. exports. If the small firm is actively involved in
international trade as are most little firms in specific areas in Europe, case in point then worldwide business is an extremely important subject to
study particularly if consolidated with cutting edge European dialects. One of the enormous brakes on the advancement of little firms is the way
that a large portion of those that could stretch globally neglect to do so in light of the fact that they fail to offer any staff at administration level with
the abilities to help them grow abroad. But obviously, if the small firm is a local service company, for example a store or a graphic services company,
then it has little scope for international development, and an international business capability is of little esteem. Small medium sized enterprises and
small and medium sized businesses are often referred to as SMEs. These are companies whose number of employees or turnover falls underneath
certain limits. The EU defines companies with fewer than 50 employees as small, and those

Table of the content
Introduction....................................................................3
What is Globalization....................................................4
The engines for Globalizations.............................5
Globalization's impacts on international business.....7
The road ahead for international business..............9
Summary......................................................11
Reference.....................................................12
Introduction
Every day we hear it on the news, read it in the papers, overhear people talking about it... and in every single instance the word globalization seems to
have a different meaning. So, what is globalization? What are its main drivers? Why and how does globalization impact international business? What's
the future of...show more content...
This is linked to technological changes, innovation and invention in many different markets. If the MES is rising this means that the domestic market
may be regarded as too small to satisfy the selling needs of these industries. Overseas sales become essential.
Globalization's impacts on international business
The trend towards globalization and internationalization, together with the nature of competition, means that an increasing number of firms need to

deal with business issues in an international context. Why does this trend toward a global economy mean for managers with an international business?
Let's exam the global business environment and see how globalization environments impacts on international business. Generally, the global

International business Essays
Protectionism in the global economy
The global economy has seen a dramatic increase in services trade between countries. The regulation and monitoring of service trade between countries
has become much harder. As highlighted by Johnson, trading in services was the fastest growing constituent of global trade during the 80's and 90's.
Cross border transactions include anything from banking to software. When services are offered to another country, theprovider has to interact with the
customer through either, cross border communications, movement of the provider or the consumer moving to the supplier's state of residence.
Technology has made international trade much easier and more feasible; this has lead countries to boost services being...show more content...
A good example can be telecommunication services, which are regulated by some governments. This has been a burden on the service market, and
organizations like the WTO has tried to interfere with some countries' policies in order to reform domestic telecommunications and lift protection
efforts. On the other hand, when we speak of services in general, there are several ways of implementing forms of protection on services coming in,
such as,
Quotas and Prohibitions:
This form of protectionism imposes a quota on the service provider. Protection methods like this are most likely put on service monopolies which can
affect the domestic economy. There are also prohibitions in some countries' because some service providers may provide services harmful to the
countries moral and cultural values. Such services like the internet need to be regulated by the government because of the pornographic content which
can be found online.
Price Based Instruments:
Some monopolies may charge or implement unfair prices to consumers, this can also affect the country when there are unfair prices. The state can
then interfere and control high prices set by companies. The state will try to ensure that services can be used by most people at an affordable price.
Standards and Licensing:
Service providers looking to set up at some countries' may need to present a certain level of standards. This highlights the importance of

The Language Of International Business Essay
At the beginning of all times civilization stared to move to other countries in order to trade, and time passed they understood that in other villages
they did not have the same language. When speakers started to trade, they communicate using their own language and adopting some words from the
others as a result of the mix of this two "languages" it is known as a "pidgin". Currently the society needs a language that acts as a universal language
or "lingua franca" it means it is the language that plays a fundamental role sharing knowledge in a certain period of time.
A Lingua Franca is a language that is used universally outside from the country where it is spoken as a native language. For example French,
Portuguese and Latin has been a dominant lingua franca at some point in history. The most current lingua franca of international business is English. It
is estimated, for example, that more than 80% of the global interactions occur between speakers whose native tongue this language. (Weil & Weil,
2011).
Nowadays, the global society is facing problems they require an answer which involves a good interaction and communication. In order to complete this
process, dwellers needs to do it efficiently. English in the last century has become in one of the most international languages that allows the interaction
in the world. The English language is widely spread throughout the world and has develop the mainly language in many regions.
A big among of nations use it for

International Business Essay Questions
International Business – Essay Questions 1. Gini Coefficient: The gini index is a measure of statistical dispersion, a measure of the inequality of a
distribution, 0 being total equality and a value of 1 maximal inequality. It is most commonly used in economics to assess the inequality of wealth or
income, but is also used in other fields such as health, science, ecology, chemistry and engineering. Gini coefficients range from 0.23 (Sweden) to 0.70
(Namibia), but not every country has been assessed. The index is defined through the Lorenz curve, by plotting the proportion of the total income of the
population (y–axis) by the bottom x% of the population): The 45 degree line represents the total inequality line. The Gini coefficient is...show more
content...
It is defined as a forum for the countries committed to democracy and the market economy, where discussions revolve around policy experiences,
common problems, identifying good practices and coordinating domestic and international policies of its members. Initially, the organization began in
Europe in 1948 (OEEC) in France to help administer the Marshal Plan for reconstructing Europe after WWII. Its membership was extended to
non–European states in 1961, when it was renamed the OECD. Most members are high–income economies with a high HDI index, and are regarded as
developed nations (Chile being the exception). Headquarters are in Paris. In the 1950's, the OEEC provided the framework for negotiations to
created a European free trade area to bring members together on a multilateral basis. The OECD was founded consisting of all European memberships
as well as the USA and Canada, Japan joining three years later. In the next 12 years, Finland, Australia and New Zealand would join the organization.
Following the fall of communism throughout Eastern Europe in 1989, the organization helped countries in preparing the market economy reforms.
Programs such as "Partners in Transitions" were created with the cooperation of Czechoslovakia, Hungary and Poland. In 2003, the OECD established
a working group headed by Japan's Ambassador to the OECD to work out a strategy for the enlargement of cooperation with non–members. Objectives
and Activities: Mandate of

Ethics and International Business Essays
Ethics and International Business:
Finding the Lesser Evil
At the beginning of this course it was made apparent that the class was not meant to be a monologue by the instructor but a discussion. From the
numerous discussions held in class, I have come to the belief that ethics in international business was the most significant topic discussed in this course.
Ethics in international business and the outsourcing of labor is a prevalent issue that affects not only the United States and our nation's economy, but
also the economy of other countries. In a world where technology has made the whole world accessible, the global economy has become more and
more important. The labor standard of the outsourcing companies also gets down to...show more content...
The standard of living in the developing countries as a whole is drastically lower than that of countries such as the United States, that one must expect
the wages to be proportionally as low. On the other hand, an adversary of sweatshops could at the same time fight back in saying that it is the ethical
responsibility of the multinational corporations to promote the positive development of the international economies. If the wages merely cover the cost
of living, then growth cannot be expected. The issue of the positive growth of the economies also plays into the other arguments against sweatshops.
Some would argue that sweatshops not only fail to promote positive growth but also cause negative growth and the reduction of living standards. The
negative growth can be brought about by the depression of wages and increased repression to make countries appealing to multinational corporations.
To counter the above additional accusations of economic decline, it can be said while the repression does exist in these countries, that economic growth
that is brought about by sweatshops leads to decreased repression. However, if it is evident that repression does occur in these countries, the originally
posed ethical question in international business as to whether our companies should conduct business in countries that do not uphold our ethical
standards is brought about again. Of

A Business Growth and Strategy Project
On
INFLUENTIAL FACTORS OF INTERNATIONAL BUSINESS AND INTERNATIONAL BUSINESS ENVIRONMENT
By: Ankit D Jethani 6937
Business Environment consist of every factors influential to the business operations. These factors are classified into two broad categories. These are:
a) External or Uncontrollable factors of Business environment. b) Internal or Controllable factors of Business environment.
External Factors: The factors those are not controllable at any cost but have to adopt for success of business are external or uncontrollable...show more
content...
However, spending on clothing and footwear, cars and entertainment would reduce.
The report cited that investment in retirement villages and aged care accommodation, in particular, would continue to grow, with construction of aged
care facilities topping $1.4 billion in 2007, up 38 per cent on the previous year, with the strongest activity in Tasmania and South Australia.
Businesses involved with health care are likely also to be winners from an ageing population, with older Australians expected to line the pockets of the
health industry. New technologies and medical procedures provide clear areas of opportunity for businesses operating in these sectors. Significant
investments in health care technology are required to meet the demands of the aged, who wish to maintain quality of life into their senior years and
are generally prepared to pay to get it.
The Impact of the Mini 'Baby Boom' and Growing Migration
It's not only the ageing population that will cause a seismic shift in Australia's demographics. The large intake of skilled migrants from overseas and a

mini 'baby boom' have helped drive population growth, which in turn has pushed the Australian economy along. This, of course, has already provided
businesses with enormous opportunities.
According to PKF's Business & Population Monitor, population

With the passage of time there will be many changes globally that would affect the economy of many countries. Globalization was one of the major
changes that the world witnessed recently, and similar to this kind of major make over, there are expected to be more isolated yet more effective
changes made. In the last 10–15 years trade has seen major changes. These changes are ones that directly affect the lives of the working class, and
have raised a great deal of concern for millions of people. This is because of the fact that democratic principles might well be overwhelmed by
capitalist endeavors. However, from a governmental perspective it appears that these strategies are ones that would not interfere with democracy. It
seems that the...show more content...
It aims to prevent crises in the system by encouraging countries to adopt sound economic policies; it is also–as its name suggests–a fund that can be
tapped by members needing temporary financing to address balance of payments problems. By uniting several economies in the North Western
hemisphere the alliances believe it can establish conditions in which trade would be most efficient. In order to implement such a strategy in the North
Western hemisphere it must be realized that there are quite a good number of companies required to make it all possible (Lucas, 2003). Protestors
believe that some of the biggest business owners want more and more autonomy from the government, and have in fact succeeded in blackmailing them
into allowing them to implement the free trade. By implementing free trade, it is said that businesses that establish liberty to trade with whomever they
want gain both power and profit. This kind of situation is something that is extremely dangerous to the 800 million people living in North, Central and
South America. These same people produce an estimated CDN $15 trillion even though more than half of them live in poverty. It is feared that the
alliances might have an immense influence on their lives and worsen their already pathetic standard of living. Though these kinds of fears still prevail
with the existence of the

Essay on International Business
Today's world of rapid increase in and expansion of technology is the reasons for recent International Business growth. The rapid growth in international
business makes an understanding of organizational behavior all the more important for contemporary managers. Businesses have expanded
internationally to increase their market share, as the domestic markets were too small to sustain growth. Business transactions are also becoming
increasing blurred across national boundaries.
Companies engage in international business to expand sales, acquire resources, diversify their sources of sales and supplies, and minimize competitive
risk. When operating abroad, companies may have to adjust their usual methods of carrying on business. This is...show more content...
When dealing with international finance, risk is calculated in many different areas. Here, I will discuss the financial risks associated with international
business, with an emphasis on the risk of foreign exchange rates. Country Risk When a business decides to become an international trader, one type of
risk that must be examined is the country risk. When a company accepts or approves credit to a foreign customer, they are not only assuming the
foreign company's risk, but also the country's risk. Country risk analysis means determining the country credit–worthiness. In terms of the ability and
willingness of a foreign government to make available to local companies foreign exchange necessary to service their foreign currency denominated
obligations or debts to foreign suppliers. (www.bcfm.com/financial_manager/szabo%20internationalfm98.htm)
Mitigation of Country Risk
One way a company can help to mitigate country risk is by fully researching the foreign country they wish to do business with. This is accomplished
by conducting a country risk assessment. This assessment takes into consideration the probability of credit loss or delayed payment, and uses the
results to determine if the corporation will extend credit with the foreign business. Foreign Exchange Risks Foreign exchange risks are often the result
of country risks. Foreign exchange risks can be defined as the ability and willingness of the

International business has many aspects that you need to be aware of before doing business in another country, whether you are a small business or a
fortune 500 company. There are many different cultures and ways of doing business around the world. I choose to focus in on doing business in Italy.
They have many different ways of doing things than we do here in the United States. There are certain topics of conversation that are welcome, there
are certain ways of dressing, certain ways to make a deal with them and many more. Italy also belongs to many International organizations.
In Italy when you are doing business with them, Italians would rather do business with a superficial acquaintance than a complete stranger. In Italian
...show more content...
When doing business in Italy dressing well is a priority. Italians perceive how you dress as a reflection of your social standing and relative success, as
well as your competence as a businessperson. The dress tends to be on the formal side whether for business or for social situations. You should do your
best to make clothing choices that are both tasteful and stylish. Italians would never wear scuffed, unshined or unfashionable shoes. Men should wear
expensive sophisticated, ties and well–cut dark suits. Men often wear accessories such as cuff links, tie clips, and stylish watches. Women are advised
to dress simply and with elegance. Italian businesswomen usually wear more makeup and jewelry than American women do. Women do not wear
stockings in the summer. Both men and women use perfumes and colognes.
When getting ready to make a deal with an Italian businessperson you should have a translator close by because many Italians do not speak English
very well. When you are selecting your negotiating team, Italians prefer to do business with the most important people in an organization. Use business
cards that are translated into Italian on the back; make sure to included any advanced educational degrees you hold and your full title or position.
Italians like to know whether they are dealing with an important person. Very senior Italianbusinesspeople have less information on their business cards.
In

Essay about Ethics in International Business
Ethics in International Business
Abstract
International business ethics challenges the corporate world to deal with questions of what to do in situations where ethical standards come into
conflict as a result of the different cultural practices in the nation. Since, there is this dilemma that has progressively troubled the large multinational
corporations, international business ethics has arisen to help address these adhesive subject matters. There are several international business ethics
discussions on the question of how to act in the home country as opposed to the host country is at the central point of most international corporations.
The argument in question is how companies should practice their business according...show more content...
The values and culture have reflective impact on ethical climate in organizations which inhabits on the ethical measurements changing in the structure
of an organization. All these concepts facilitate the motivation of both employers and employees that would lead positive effects for organizations.
Motivation is a psychological trait that would lead an individual or related party to a desired action on a definite goal. Motivation in an organization is
considerable to sustain an employee with occupational pleasure, individual satisfaction, and positive contribution to the work place and its environment.
Ethical Management, Impact on Individual and Organizational Performance Companies are supposed to be able to achieve and demonstrate an ever
increasing performance showing improvement on leading in their industries to acquire competitive advantages. Having a high level of performance
could be greatest achieved with competent and motivated employees. The conduct of business in an organization with an ethical manner is of great
importance to secure an increasing performance as well. Organizations functioning towards ethical standards should ensure unbiased applications of
business and recall a sense of justice to stimulate motivation among their employees. Employees that are motivated through a positive ethical
organizational climate and leadership do much better than a less motivated employee. This promotes the organizational achievement that causes

How does international business achieve its internationalization objectives in the contemporary context?
Introduction
In today's prosperous modern society, Multinational Corporation and international organisation becomes a common key factor in increasing economic
and social interconnection. Globalization grows mobility of goods and services, and expands business in all dimensions. To enterprise an international
business is indeed a complex level of soaring towards the international trade. In order to up keep the business standards and objective, Silkenat, Aresty
& klosek (2009) believes that trust is a fundamental matter in business trade. It gives reliability and a continuation business relationship.
Veghefi, Paulson &...show more content...
Therefore, with the partnership of ILO which is a specialize agency under United Nations and IFC under World Bank Group the programme brings a
strong credibility and exposure (Better Work 2012).
Another value added program with ILO is Green Jobs, it was established 2007. The nation saw the unpredictable change in climate and want to
promote awareness to create decent jobs in favour to the environmental policies and challenges affecting climate changes (ILO 2012).
Green jobs held social dialogue conference with ministers providing them knowledge how green jobs like reducing consumption of energy, raw
materials, minimizing waste pollution and protecting resources to attain a sustainable growth, hence reduce poverty (ILO 2012). ILO (2011) reported
that countries with greener economies provide potential job creations; it deals better with the coming structural changes and reconstruction of existing
jobs as a global.
Combining value added programs and the number of countries participating geographic, ILO has a higher advantage to support the members with
better economic growth, higher standard of living and improving labour rights. Kutscher & Baurle (1997) mentioned that organization with more
value added aboard is able to internationalize and activities can be widely spread and disperse among countries.
Integration
Another reason was integration use for internationalize ILO. Integration was used to

International Business Communications Essay
In the past five decades, changes and advancements in economic relationships, political systems and technological options began to break down state
boundaries. Business transformed from one country activity to part of an interdependent international network. As Damen writes "One cannot live very
long and remain totally monocultural in the modern world" (1990, 56). However, international business communications do not effective every time.
A wide range of business firms found that their employees were ill equipped for overseas work in the globalizing market. In this case study, Molly
and Daniel found that there was a problem in communication between two multinational companies. This essay will analyse this problem of intercultural
...show more content...
In spite of those businesspersons tried to make successful communications, they still felt uncomfortable with people from other countries.
There are some solutions that lead to success in communicating business with people who have backgrounds which unlike each other. The most
important aspect is to learn another culture. Molly and Daniel may not be conducting a comprehensive training program about the cross–cultural
awareness because they do not have plenty of time. Still, they can give those businesspersons who belong to multinational companies a presentation
about intercultural awareness or a consultation to enhance people's awareness of cross–cultural. In addition, language and language behaviour,
especially non–verbal communication has a very significant role in the intercultural communication, such as clothing, eye–contact, proximity and
touching. Molly and Daniel should pay attention to this aspect. Mere knowledge about the language will not be important to sort out the differences
and misunderstandings in communication. However, the non–verbal communication is very essential in the process of cross–cultural communication.
Lack of experience in expressing language behaviour properly reduces the self confidence among the people and develops a poor interpersonal
relationship.
To sum up, the best solution for Molly and Daniel is that introduce cross–cultural awareness to those businesspersons. In short–term, this solution will

The Impact Of International Business On Business
The impact of International Business
International business, defined as commercial transactions that take place between two or more countries. International business grew over the last half
of the twentieth century, partly because of liberalization of both trade and investment, and partly because doing business internationally had become
easier. International business is different than domestic business, because of environmental changes a company faces when crossing international
borders. A company normally has a better understanding of its domestic environment than with the environment in other countries. When a company
enters a new country they must invest more time and resources into understanding the new environment. (Punnett, n.d.)...show more content...
Companies using this strategy set themselves apart from the competition. An example of a company using this strategy is Starbucks. Their differences
can be seen in the design of their coffee shops, the music they play and the products they sell, such as coffee–brewing equipment and CDs. Starbuck
also makes sure to keep the technology current, Starbucks was one of the first companies to implement location–based promotions and mobile
payments. Going to Starbucks for a cup of coffee you will pay a premium price, however, due to the fact that Starbucks offers high quality products,
people feel like they are getting a good deal. One of the main goals of a business is to gain advantage on their competition. One way to gain advantage
is to conduct a value chain analysis, which studies what an organization can do in order to generate a competitive advantage, while providing the
greatest value to their consumers. The analysis involves identifying each part of the chain and seeing where improvements can be made from a
production standpoint or a cost perspective, to guarantee that consumers get the most bang for their buck. It can benefit a business in the long run,
when consumers are getting the most out of a product for the cheapest cost value to consumers. "The value chain analysis looks at each of the activities
in the value chain to determine what steps are necessary and which are not in an attempt to boost the company's bottom line." (Brooks,

Doing business overseas requires the company to adapt to local laws and conditions in every country in which it operates. There are two steps that the
organization should follow in order to prepare for doing business around the world. The first is that the company needs to have a set of guidelines for
conduct that is consistent throughout the entire company. This would include a code of ethics that sets a minimum standard for behavior, regardless of
what laws the company is subject to. Standardizing conduct and ethics throughout the organization helps to insulate against differences in laws and
codes of conduct around the world.
The other strategy is to work with people who are familiar with the laws of the foreign markets. There is little hope that a domestic company can
become expert in the laws and ways of doing business in dozens of foreign countries. Thus, it is necessary to employ a local team, accounting team
and perhaps even local teams for management and for human resources consulting. Many firms seek to reduce the risk associated with foreign markets
by utilizing joint venture partners, as those partners have a much high degree of local market expertise than the American company could possibly
have. Such an arrangement allows the American company to focus on its strengths marketing, brand building, and product development while leaving
many of the operational issues like hiring, legal and accounting to the local partner (Clark, 2012).
There are many issues

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