Business Ideas Centre

ECONOMIC  (OR) INTERNATIONAL TRADE THEORIES IN INTERNATIONAL BUSINESS

Trade theory mainly focuses on the following questions:

-          What products to import and export?

-          How much to trade?

-          With whom to trade?

There are various theories for international business. These are,

01.  Mercantilism

According to mercantilist theory, countries should export more than they import and if successful, would receive the value of their trade surpluses in the form of gold from the country.

Balance of trade = Total Export of goods and services – Total import of goods and services

02.  Neo Mercantilism

Recently, the term neo-mercantilism has been used to describe the approach of countries that apparently try to run favourable balances of trade in an attempt to achieve some social or political objectives.

03.  Absolute advantage

It means “A country has an absolute advantage in the production of a product when it is more efficient than any other country in producing it”.

04.  Theory of country size

The theory of country size holds that countries with large land areas are more adopt to have varied climates and natural resources, and therefore they generally are more nearly self-sufficient than are smaller countries.

05.  Comparative advantage

It makes sense for a country to specialize in the production of these goods that it produces most efficiently and to buy the goods that it produces less efficiently from other countries, even, if this means buying goods from other countries that it could produce more efficiently itself.

06.  Factor-Proportions theory

According to the factor proportions theory, factors in relative abundance are cheaper than factors in relative scarcity.

Factors are:

07.   Product Life Cycle theory (PLC):

According to PLC theory, the production location for many products moves from one country to another depending on the stage in the product’s life cycle.

It consists,

08.  Competitive advantage:

This theory is also known as Portor’s diamond. It consists 4 broad attributes,

09.  Country similarity theory:

The theory that a producer, having developed a new product in response to observed market conditions in the home market, will turn to markets that are most similar to these at home.

It is based on the distance among countries, competitive capabilities, cultural similarity, and relations between countries.

10.  New trade theory:

New trade theory argues that if the output required to realize significant scale economies represents a substantial proportion of total world demand for the product, the world market may be able to support only a limited number of firms based in a limited number of countries producing the product.

Jun 01, 2009 03:37 ET

Wyndham Hotel Group Appoints International Business Leaders

Highlighted Links

 

Wyndham Worldwide

LONDON–(Marketwire – June 1, 2009) – Wyndham Hotel Group (NYSE: WYN), the world’s largest hotel company with approximately 7,000 hotels around the world, today announced the appointments of hospitality industry leaders Ken Greene and Michael Poynter to oversee the company’s efforts outside of the Americas, further exemplifying the Hotel Group’s commitment to its portfolio in Europe, the Middle East and Africa (EMEA) and Asia Pacific (APAC).

As of March 31st, 2009, the company had a combined total of nearly 500 hotels across both regions. In the past year, Wyndham Hotel Group opened 78 additional hotels, including 23 hotels in EMEA and 55 hotels in the APAC region.

“Strategic global growth and operational excellence are top priorities for Wyndham Hotel Group and therefore, we are committed to appointing the best and most talented leaders who will continue to build our business and help ensure that our stakeholders want to be with us and stay with us,” said Eric Danziger, Wyndham Hotel Group president and chief executive officer. “The experience, dedication and passion that Ken and Michael bring to our global operations are what our company and brands need to flourish.”

Greene will serve as president and managing director for the APAC region and will be based in Wyndham Hotel Group’s Hong Kong office. Poynter will be senior vice president and managing director for the EMEA region and will be based in the company’s London office.

Both will oversee the Wyndham Hotel Group’s operations functions and manage the communication, coordination and execution of cross-functional, brand initiatives in their respective regions.

Greene previously served as group president for Wyndham Hotel Group, responsible for the operations, development, and marketing of the company’s Ramada®, Days Inn®, Howard Johnson® and Travelodge® brands. Prior to that, he served in key executive positions, including president of the Days Inn, Howard Johnson and Travelodge brands and chief financial officer. He joined the company’s predecessor in 1993 as director of franchise development for Coldwell Banker.

Poynter, who has over 25 years of hotel operations experience, previously was chief operating officer for Elegant Hotels Group, a London-based hotel operations company specializing in upscale and luxury Caribbean resorts. He has served in various operations roles with Carlson Hotels Worldwide and the former Wyndham International where he served as managing director of the Wyndham Elbow Beach hotel in Bermuda and opened the Wyndham brand’s first offshore casino hotel in Puerto Rico.

Wyndham Hotel Group, one of three principal components of Wyndham Worldwide Corporation (NYSE: WYN), encompasses approximately 7,000 hotels and 588,500 rooms in 66 countries under the hotel brands: Wyndham Hotels and Resorts®, Ramada, Days Inn, Super 8®, Wingate® by Wyndham, Baymont Inn & Suites®, Microtel Inn & Suites®, Hawthorn Suites®, Howard Johnson, Travelodge and Knights Inn®.

All hotels are independently owned and operated excluding certain Wyndham and international Ramada hotels which are managed by our affiliate or through a joint venture partner. Wyndham Hotel Group is based in Parsippany, N.J. Additional information is available at www.wyndhamworldwide.com.

You’re going to give some presents from time to time if you’re in any type of business. Be it Christmas or an important client’s birthday, gift-giving is one of the most effective ways of establishing stronger ties to those who matter to you and your business. This may not be totally true but even as this, it is the most common perception. Yes, there are cases when gift-giving can be one of the worst things you can do, especially if you are involved in international business. Mostly, that’s one of the reasons why differences in the insights towards business presents have a lot to do with race or nationally.Other countries can actually take the act to be completely not acceptable while some may be very open to giving presents. For instance, in Czech Republic, Columbia, Indonesia and some others, giving presents is a warm symbol between business people. This can be misunderstood as bribing when you’re on other countries like Australia, Denmark or Uruguay.It can be critical for you to take time to research on the gift-giving customs of the people you deal with if you’re involved in international business. Sometimes, it can be easy to conclude that a gift on a client’s birthday is going to make your ties stronger. But sometimes, it will not work this way. It can still make negative vibes that may be considered to affect the business relationship. Hence, it is important to always know the background of the people you consider gifting.The issues around gift giving may not even be purely cultural but religious as well. Even when working for a company, it will be a wise idea to research on the culture of the people you might plan giving a gift to. For example, you might think of giving your boss a little token on his birthday. Perhaps you cannot give him anything made of cowhide as in India, cows are considered sacred if this person is Indian.There will be rituals or “rules” that have to be pursued as giving gifts is not really discouraged in some cases. The Chinese, for instance, consider red a lucky color. The monetary value of a gift may also affect its meaning in almost all cases. Whatever thing that is costly can make the receiver feel uncomfortable or even embarrassed. In other cases, a gift should fit the level of relationship that the giver has with the receiver.There are more differences among nationalities in terms of their gift-giving customs and it is important to consider these before you give anything, no matter how well-meant.

Those who are involved in any type of business know that they can never avoid giving gifts once in a while. Businessmen would like to improve their business ties and relationships and gift giving is the perfect way to do so regardless of the occasion. Although this is the common belief for most people, this does not necessarily translate to the reality. You might not believe this but there are times when giving gifts can be the worst thing that you can do. This is especially true when you are invovled in an international business. Mostly, that’s one of the reasons why differences in the insights towards business presents have a lot to do with race or nationally.Other countries can actually take the act to be completely not acceptable while some may be very open to giving presents. For example, in the Czech Republic, Columbia, Indonesia and some others, giving gifts is a warm gesture between corporate people. But in other countries such as Australia, Uruguay and Denmark, this can be misconstrued as bribing.Other countries can actually take the act to be completely not acceptable while some may be very open to giving presents. Of course, there are countries that find this act to be very warm and friendly. However, there are other countries like Australia and many others that find this act offensive because they think that this is like a bribe.If you’re involved in international business, it can be crucial for you to take time to research on the gift-giving customs of the people you deal with. Sometimes, it can be easy to conclude that a gift on a client’s birthday is going to make your ties stronger. The effect can be otherwise. It can still make negative vibes that may be considered to affect the business relationship. Hence, it is important to always know the background of the people you consider gifting.The topic about giving presents may not only be cultural but also religious. It will be a good idea to research on people’s cultures you are planning to give presents even when working for a company. You might think, for instance, giving your boss a gift on his birthday. Perhaps you cannot give him anything made of cowhide as in India, cows are considered sacred if this person is Indian.There will be rituals or “rules” that have to be pursued as giving gifts is not really discouraged in some cases. For example, the Chinese considered red a lucky color. The monetary value of a gift may also affect its meaning in almost all cases. Whatever thing that is costly can make the receiver feel uncomfortable or even embarrassed. A present should fit the level of relationship that the one who gives the gift has with the receiver in other cases.There are more dissimilarity among nationalities when it comes to customs of giving gifts and it is significant in considering these before you give something, no matter how well meant.

Remote Control Software, also known as Remote Desktop Software or PC Remote Access software, has been rapidly growing in popularity over the last several years. These programs enable direct connections among multiple computers from any location in the world. This means that a computer in America can quickly and easily connect to a computer in China, and the American user can have full access and control over the China based machine (the connections afforded by this software allow either use this level of control). In this scenario, the America based user would have a full visual representation of the accessed machine on their display, and would be able to control that machine as if they were sitting directly in front of it. These connections are often used to enable a more efficient delivery of technical support, as they allow tech support specialists to take over a user’s machine and directly address their issues. There are also applications involving media delivery and surveillance options, among many others. However, in this article we will focus on the ability of Remote Control Software to enable companies to more easily conduct international business.

 

 

 

Virtualization – Virtualization through the use of remote control software has become a fairly widespread application of the software. With virtualization there is no longer a need for the user or worker to have an incredibly high powered machine in order to be productive. Instead, the user can use what is known as a thin client solution. ‘Thin client’ is a term that refers to a computer which has very little installed software, and only the required hardware. Rather than loading up this system with a litany of programs, the thin client has remote control software installed. Once installed and configured, the Remote Desktop Software is used to connect to a central server or machine that holds all the required programs for that user. In this set-up the CPU load falls on the main machine, while the accessing system needs only an internet connection and the bare minimum of hardware specs in order to function at a high level.

 

 

This virtualization can be of great help when companies are seeking to employ international talent. Rather than deal with potential issues arising from incompatible software versions, the lack of installed programs, missing proprietary applications or other technical problems, the new employee can simply connect to the server of their new employer using PC Remote Access software and immediately be up to speed with the rest of the company. This can save incredible amounts of energy and money, and can also help the new employee to begin contributing to the workforce in much less time. The money saved can be seen in several contexts. First off, since the employee will be able to start contributing almost immediately, there will be a much shorter adjustment period. Also, the company will not have to furnish the employee with any new hardware, and if they do, it can be a very affordable thin client instead of an expensive, high-end machine. In the next entry in this series, we will examine another way in which remote desktop software can help a company conduct international business.

Hong Kong has been an international business centre. Located at the heart of Hong Kong, HIBC is providing a full range of services covering virtually all the needs of office users including virtual office, business registration of companies, accounting and tax as well as trade mark registration. Apart from basic business centre services, they also take care of the needs of office users ranging from office set-up to business admin services. Please visit Other Business Centre Services for more detailAn environmental friendly business centre – strive to build a better future for the generations to come. Local competition may be superior with enclosed parking or uncovered outdoor parking but it may just be an open parking space.  For example, self storage. Before you decide on whether to offer boat storage and rv storage services to your existing location, research the pros and cons of the business and make sure that before you make the invesment or decision that you are more likely to win than lose.By offering such storage units, you can attract a larger customer base.If you are hesitant about offering climate controlled self storage units, evaluate and research your competitors use and their success with renting those type of storage units.  The advantages of offering climate controlled self storage will far outweigh any additional cost associated with them.When you refer to climate controlled self storage, it pertains to storage units that are equipped with heating and air conditioning.  Clients rent self storage for many reason’s but one of the most important is they do not want to dispose of their posessions or belongings.  Not all items need climate controlled self storage but you must be sure to offer it in the event your customers demand it.  Not only is it a great selling feature, it generally cost more than non climate controlled.Business Identity Plan – A most popular option for the business person not yet ready to occupy an office. This Hong Kong virtual office plan provides immediate access to all the services at a fraction of the cost of space crystal oscillators.A company or individual is entitled to use Harbour International’s Hong Kong office address, switchboard telephone and fax number, as their business address. We will forward all mail and messages to the subscriber’s designated address. This virtual office plan also comes with a dedicated telephone number option. The Business Community is well aware of the importance of Hong Kong as an international business centre. Setting up shop in Hong Kong places your business not only at Asia’s very hub, but at the paramount gateway to China. Business centre itself is environmental friendly by nature. It saves people from renovating offices and buying new furniture and equipment only to demolish and dumb them in the future. VP Business Centre has, in particular, taken the initiative of facilitating the re-use of second hand office furniture in the hope of reducing wastage.To do business in Hong Kong, one can set up a sole proprietorship, a partnership or register one’s own company incorporated elsewhere as an overseas company in Hong Kong. Another form of business entity in Hong Kong – is the virtual office of private limited company, which limits the liability of the shareholders to the capital subscribed. The incorporation of a tailor-made company business registration in Hong Kong takes around 10 working days but one can buy a “shelf company” and almost immediately start business.

Remote Control Software, also known as Remote Desktop Software or PC Remote Access software, has been rapidly growing in popularity over the last several years. These programs enable direct connections among multiple computers from any location in the world. This means that a computer in America can quickly and easily connect to a computer in China, and the American user can have full access and control over the China based machine (the connections afforded by this software allow either use this level of control). In this scenario, the America based user would have a full visual representation of the accessed machine on their display, and would be able to control that machine as if they were sitting directly in front of it. These connections are often used to enable a more efficient delivery of technical support, as they allow tech support specialists to take over a user’s machine and directly address their issues. There are also applications involving media delivery and surveillance options, among many others. However, in this article we will focus on the ability of Remote Desktop Software to enable companies to more easily conduct international business.

 

Meetings – One of the most financially demanding aspects of conducting international business involves the costs of travel. For a small business trying to dip their feet in international waters, the costs can be prohibitive. For the larger company that often deals in international business travel, cutting costs is an attractive option. For each situation, help can be found in the form of Remote Control Software.

 

These programs are being used by more and more businesses every day due to their incredible flexibility and the increased productivity they afford. One of the most popular applications involves the use of meetings and collaborations. Often times, an international trip will be planned so one company can present their business plan to another. With the intricacy of today’s presentations, these simply cannot be emailed and left for the other party to digest. They must be presented by an individual who worked closely on the project, and understand the goals and objectives of the presentation. Using remote desktop software, a company can deliver this same presentation, but without the time and money spent on international travel. All that is required is for the two companies to connect with remote control software. Once connected, the presenting company can deliver their presentation along with a full narration.

Delivering a presentation in this manner offers several advantages to both sides. Beyond the saved travel costs, there are time considerations. An international trip can often keep a worker out of the office for several days. This downtime can be completely avoided through the use of this software. For the company receiving the presentation, there exists an opportunity for a more interactive presentation. Rather than being sat around a table while the company presents their work, remote desktop software allows both companies to participate. This setting allows for dynamic input and corrections to be made, while keeping the communications flowing in two directions. Finally, this functionality extends beyond presentations, as face-to-face meetings can instantly be held, project progress can more easily be monitored, and expert input can instantly be received – all through the use of PC Remote Access software.

INFORMATION TECHNOLOGY AND INTERNATIONAL BUSINESS

By

Miss. P. PIRAKATHEESWARI, Lecturer in Commerce,

Sri Sarada College for Women (Autonomous), Salem – 16.

Introduction

           Computerization has changed the way business is conducted the world over. No aspect of business has remained untouched by the information technology (IT) revolution. This is especially true of international business where people located in different parts of the world conduct transactions with each other. The activities of international business include manufacturing, in-land transportation, customs and excise matters, port operation, shipping, clearing and forwarding, etc.  During the course of these transactions, a large number of documents are created and exchanged, many of these documents or the information contained therein is repeated, while creating and mailing these documents before the advent of IT., hundreds of man-hours would be lost in repetitive operation, innovations in IT have revolutionized international business; the use of technology in managing and processing information. Especially in large organizations helps save time, bring down costs, and reduce manpower, manual data input and transfer has now become not only obsolete, but also irrational. 

Areas              

In international business today, IT finds maximum utility in the following areas:

1. Electronic procurement

2. Electronic marketing

3. Electronic logistics 

             A modern competitive enterprise seeks to hold an edge over the market. IT helps provide this competitive advantage through its various applications tools. By adapting these tools in various areas of business, the organization can gain many advantages in terms of accessibility to a customer or supplier in any part of the world, speed of operations, reduction in man power, etc. due to the reach of the internet it is possible to conduct buying and selling transactions irrespective of geographical location. Internet banking helps in the speedy execution of payments and settlement of accounts. A website can be a virtual showroom, where products can be displayed, demonstrated, and sold. Such a website can also provide various after- sales service tips and suggestions, launch discussions forums, ask for customer feedback, and educate the customer. IT application such as electronic data interchange (EDI) has also enabled logistics operations to be paperless. 

1. Electronic Procurement           

E-procurement essentially comprises a number of inter-related methods for improving the procurement process through the use of electronic systems and processes.  The need for e-procurement stems from the fact that in today’s globalized world, a manufacturer can source inputs such as raw materials, components, machinery and consumables from any part of the world.  The manufacturer is constantly looking for suppliers who can offer quality materials at the most competitive rates.  The internet has become a favourite hunting ground for the best bargains. Small companies can purchase their inputs through various websites, which sell a variety of items. However, for the larger organizations, electronic procurement is a systematically outlined process. Here, enterprises use automated applications to streamline buying both production and non-production goods and services.

            The entire electronic procurement process can be divided into three major components: pre-purchase, purchase, and payment activities. Pre-purchase activity can begin with a Request For Purchase (RFP) generated by the user department and sent to the purchase department. The electronic platform helps to plan pre-purchase activities starting with the vendor pre-qualification process. Vendors are invited to register their interest in a prescribed application form. They are asked to provide information about their organization, availability of resources, such as manpower, machinery, and monetary resources. Reference letters from their bankers help establish their standing in the market. A list of their present customers is also sought to gauge their market base. The short-listed vendors are registered and whenever there is a requirement of their services, a Request For Quote (RFQ) is sent to them. In case of very large purchase orders, venders are invited to bid in a competitive bidding process. Tender evaluations tools help identify the most suitable bid. A number of companies resort to reverse auctions, whereby, they announce the auction process on their website and ask the vendors to make their bids before the deadline. The bids are then opened and evaluated, before the contract is awarded to the selected vendor with the most suitable offer. This process is called a reverse auction because in this case the auction is for procurement instead of a sale.           

Benefits of Electronic Procurement 

2. Electronic Marketing 

            Internet has changed the way we exchange goods for money.  It has broken geographical barriers between buyers and sellers.  The internet enables a manufacturer in India to sell his/her goods to a customer in any part of the world through the World Wide Web.  It is necessary, however, that the buyer has access to internet and has the necessary know-how and desire to make online purchases.

            The internet has provided a very effective platform for electronic marketing or e-marketing.  E-marketing means using digital technologies to help sell your goods or services.  This is different from a conventional market place, where sellers display their goods and buyers can touch and feel the goods and bargain with sellers.  In case of e-marketing, sellers can display photographs, video films and specifications of their products.  In most cases, the prices are also displayed so that buyers have a clear idea about the product and price.  

Benefits of E – Marketing 

3. Electronic Logistics 

            Electronic logistics is use of web –based technologies to support warehousing and transportation management processes. E-logistics enables distribution to couple routing optimization with inventory tracking and tracking information.

            In international trade and distribution, computerization is slowly but surely tacking hold of every aspect of business. From computerized trade leads available through the department of commerce, to electronic letters of credit, to telecommunicated documents, to computerized freight booking, tracing and documentation system, to electronic freight tariffs, automated freight payment systems, computerized loss and damage reporting.

            There is a tremendous scope of the application of IT in logistics.  In fact, modern supply chains are held together by the strength of IT, through its ability to transmit huge amount of data speedily, or make global data available to expedite the decision making process.

            Due to the advantages offered by IT, many logistics providers are planning to handle majority of their commercial transactions electronically.  Also, exporters are already using IT for various activities ranging from e-procurement of goods to availing transportation services on the net. 

Important Electronic Tools 

            Shipping lines are keen to encourage their customers to use the internet and have developed a number of attractive tools.  The biggest benefit of these tools is that both shippers as well as shipping lines gain by using them.  Following are some of the important tools:

1. Electronic Receipt of Vessel Schedule Information

            Shippers can visit a logistics portal to check the schedule of different shipping lines and choose what suits their supply chains the best.  This saves shippers time and effort.  The shipping lines, too, benefit as they do not have to inform individual shippers about their voyage schedules.  At present, the only limitation to this system is that not every portal maintains information about every shipping line, nor does every shipping line provide updated information on their sites or related portals.

2. Tracking and Tracing of Cargo

            The biggest benefit shippers enjoy as far as e-logistics is concerned, is tracking and tracing the cargo.  With e-connectivity they need to spend less time per enquiry with shipping lines about the status of their cargo and significantly improve their supply chain visibility.  However, different portals offer different services.

3. Remote Bill of Lading Printing

            The main benefits of this facility are reduced production and distribution costs for the carriers.  The shipper’s gain is fast and error-free receipt of documents.  More and more shippers are using this facility and are demanding simplified transmission of transport documents.  One of the reasons for this is error-free transmission of Bill of Lading.  Shipping lines normally dispatch the Bill of Lading within 48 hours of vessel sailing. 

4. Single Data Entry Reporting

            With the aligned system of documentation, the format of various shipping documents is now standardized.  Information once keyed in any document will automatically appear in all aligned documents.  This system saves repetitive data entries and also saves substantial time and cost.

5. Exception Reporting

            Shippers across the world, who work tirelessly towards manufacture of quality products, also want reliable delivery schedules.  Exception reporting by the shipping line helps the shipper to know if there are any deviations from the instructions, which he/she has given to the shipping line.

6. Online Tendering

            To find out the ocean freight rates from various shipping lines, the shipper has to send an enquiry separately to each shipper.  Online tendering helps the shipper to send out rate enquiries to as many shipping lines as desired by merely pressing a button.  Today, in the era of rationalization, mergers and acquisitions, the shipper’s global requirements are getting increasingly complex.  Online tendering helps them get competitive quotations from shipping lines operating on various routes.  These multinationals maintain databases of such quotations in order to choose the most competitive rates on various routes. 

Conclusion

            Technology is changing at a very fast pace.  Various aspects of electronic business such as e-procurement, e-marketing, e-logistics use a number of technology products.  The life cycle of technology products is very short.  We are living in a knowledge-driven era, where everyone has access to information thanks to internet and a variety of other sources of information.  However, the market is dominated by those, who translate information into knowledge and use the knowledge to improve productivity and efficiency of their enterprises.  India is enjoying an enviable position because of its leadership in the area of information technology.  A number of business solutions are developed in India for world wide applications. However, such applications take a long time to be implemented in India itself.

 

Introduction

There are a number of misconceptions about Russia as a business destination. Some people believe that conducting business in Russia is an all too easy process and that all it takes are some good connections or simply meeting with the right people. On the other hand, others believe that in Russia, it is almost impossible to do business and that enterprises are not governed by the basic principles of economics. While these latter assertions might have some validity in certain respects, it is essential to understand that they do not represent the business climate, market opportunities or entry strategies required to make it in Russia.

Russia as a business destination requires its own set of rules. One needs to be ready to do business in an unconventional way. Additionally, one should be ready for the disparities that occur across various sectors and also across a number of geographical areas. In Russia, some areas are oversupplied while others are undersupplied. The latter could either act as rewarding business opportunities in certain instances or they could signify areas that need to be ignored because if the Russians themselves do not see any potential in it, then what makes a foreigner think that he/she can turn it around. (Fetsenko, 2008)

Business in Russia is not for the feint hearted. It requires a great deal of imagination and resilience. But after exercising all the latter traits, it can then become easy to enjoy the rewards of investing in this country. Consequently, one should be well equipped with all the business environment information, market intelligence, import and export opportunities and market strategies required to succeed in Russia before venturing there. These are all aspects that will be covered in the report below.

Market Intelligence Report (MIR)

The Russian People

There are a number of misconceptions held by westerners about the Russian people. Some of them believe that Russian cities are too susceptible to crime and that one would lose their property at any one time. However, compared to crime levels in the United States, Russian cities are safer.

Other people believe that in Russia, organized crime overrules the basic principles of economics and that one cannot expect to find considerable profits without collaborating with these high profile criminals. However, this is another misconception; one can still conduct business in Russia without having to involve members of organized crime. While the latter issue may exist in certain sectors of the economy, others are not affected by it. Consequently, businessmen interested in doing business there need to familiarize themselves with the sectors that are untouched by such kinds of issues. (Donga, 2008)

It should also be noted that not all Russian people are interested in taking bribes. The case of corruption has been a rising concern among business men from the US because most of them may not understand the dynamics of the Russian business environment. However, this is an issue that has been exaggerated by many individuals. In fact, this could simply be a result of the culture shock which one gets exposed to as soon as they enter a foreign country.

It should however be noted that the Russian people are not as expressive as most other individuals especially when they meet strangers. This kind of attitude emerged out of the communist regime that oppressed its people’s freedoms. Consequently, it would be wise to remember this aspect when dealing with the Russian people. One might not be able to get responses out of them at first hand, it may be necessary for one to earn their trust first before they can think of opening up.

It should be noted that the Russian way of life is slightly different from the American one. Consequently, foreigners need to understand that not everything in Russia will be synonymous to what they are used to in their own countries. This means that one should be ready for the minor inconveniences that come with change. The Russian people eat different food, they enjoy different leisure activities and conduct business a little differently from the Americans. It would therefore be appropriate for one to deal with these cultural differences by embracing them rather than by whining and complaining about them. (Reykavik, 2006)

The Russian people differ from the Americans because their perceptions of contracts are quite peculiar. Most Russians regard contracts as statements which contain mutual intentions. Consequently, if something happens to alter those intentions, then the Russians may not be obliged to meet the terms of the contract. This is a totally different mindset from the American definition because Americans are more concerned with the terms of the contract and the intricate details that govern it. It should be noted that Russians place more emphasis on the relationships that emanate from the contract rather on the particular details of it.

Russians are well cultured persons. They are exposed to a wide range of media platforms and books; they are also good researchers and scientists. Consequently, one should not assume that they cannot get any positive responses from Russian people in terms of business. In fact, most of them are good with foreign languages and can be well motivated to perform. However, care should be taken by western managers especially when work involves a lot of innovation. The Russians were not used to making their own decisions during the communist regime because they would get punished for doing so. Consequently, American investors need to inform their Russian workers about their expectations and whether they would anticipate their workers to exercise innovation.

The economy

The Russian economy has quickly emerged from its downturn in the nineteen nineties and in the late nineties. By the time, the country was entering the twenty first century, it was boasting of a growing economy whereas their counterparts were fighting off inflation. The Russian economy is unique in that while other countries are trying to cope with rising oil prices, this country is benefiting from it. Because the country is rich in oil supplies, then it is on the opposite end of the global oil crisis. (Ganske, 2007)

The country’s local imports have strengthened against exports because of the behavior patterns of the Russian Rouble. The following is depiction of this pattern

1998- 9.71  Roubles per US dollar

1999-24.6 Roubles per US dollar

2005-28,3 roubels per US dollar

The overall effect of this week rouble is that the highest percentages of commodities that have been doing well in this country are industrial products and most of them are being produced locally. It is therefore imperative for investors to consider this sector.

Furthermore, Russian business investments have grown tremendously over the past few years. This is as a result of greater utilization of their capacity. Also, the government minimized tax burdens amongst its populace and also expanded their employment opportunities. However, spending power has not reached similar levels owing to increasing prices of commodities. Furthermore, inflation levels have been much lower over the past few years owing to the monetary policies instituted by the respective government regime. The following is summary of some of the major indicators of the Russian economy over the past five years

Source: retrieved from http://info.hktdc.com/emergingmarketguide/

The government

The Russian political scene has witnessed numerous fluctuations over the past decade. During the nineteen nineties, it was controlled by its president Yeltsin and these were not good times for the business environment. However, after the Yeltsin era, there was the emergence of the Putin era. This era is much more successful than the latter because of number of reasons. The following are some of the characteristic of this era;

These are all aspects that encourage greater investment and better performance for entrepreneurs especially in relation to international business. Because of these changes, the Gross Domestic product of the country has undergone numerous changes over the past few years. For instance in 1999, it recorded a six point four percent growth rate, in 2000, it reported a ten percent growth rate, in subsequent years, it has continued to grow at a steady pace. (HKTDC, 2008)

The Russian government has been somewhat criticized for the method of governance. While it is a known fact that Russia’s political environment has not been an exemplary case, one can still proceed with business in this country regardless of good or bad political situations. In fact, one’s frame of mind will largely affect whether they can go about their business without being affected the politics in the country or vice versa.

It should be noted that the Russian government has only allowed free market economics over the past decade. Consequently, most industrialists and business men who operate in this country are highly inexperienced in commercial business ventures and also in international business; areas that require application of basic economic principles.

Technology status

In the past, the Russian government has not been very keen on the issue of Information technology. However, this trend is slowly changing owing to the fact that the country has recorded high amounts of tax incentives for IT specialty companies. Additionally, most of the local hardware manufacturers are growing in size. In fact, the country has forecast an IT growth rate of fourteen percent by the year 2011. This is also means that the country will grow by nine billion dollars in this sector from the ten billion dollars registered last year. (Tuohy, 2008)

The government has also instituted plans that it will rebate taxes for families by as much as thirty nine percent if those families purchase computers. This also means that IT use among members of the population will rapidly increase. There are also some tax cuts that have been instituted for suppliers in the hardware sector. Consequently, one would have a relatively easier time in this sector presently than in the past. (Kitov, 2007)

The country’s technological has also improved tremendously owing to the institution of an initiative in 2007. The initiative was to encourage greater computer usage in rural parts of the country. This was done by reducing the cost of purchasing PCs in those areas. Consequently, many individuals have been encouraged to participate in IT and this has gone a long way in enhancing this country’s economy.

Business Environment Analysis Report (BEAR)

Russia underwent a series of economic reforms over the past few years. Consequently, the country now boasts of stable currency i.e. the Ruble as now stabilized. This means that any foreign investor who is interested in doing business would have a better bet at succeeding if they concentrated on exports rather than imports. Imports to Russia have been very expensive. Consequently, managers should consider creating goods locally or using locally made supplies so as to minimize their costs of business.

It should also be noted that these economic reforms have now created feasibility in previously low performing sectors. For instance, it is now advisable to consider the retail sector especially with regard to consumer goods. Additionally, it is now also favorable to consider dealing in manufacturing equipment. The financial investment sector is also becoming increasingly lucrative and would be a profitable venture when considered by entrepreneurs.

Before one conducts business in Russia, it is essential for one to look for local partners. There are a number of advantages that can emerge out of finding a good local partner and these could be invaluable to the business. Some of them include;

-They understand bureaucracy in the country

-They know the market dynamics

-Are familiar with staffing arrangements

-Understand overall business costs

-They understand common mistakes made by first time investors

-They know how local rent costs are settled

-Can give information about taxes

All this information can be accessed by foreign companies simply by hiring the services of these local personnel. Consequently, one can save on time and resources. It should be noted that getting local partners in Russia is perhaps one of the biggest challenges of doing business in this country. This is because these partners can save the foreign investor a lot of hustle when trying to look for local consumers, suppliers or other stakeholders that will be involved in the overall business process. (Vista, 2008)

The Russian business environment is different from what most other people are accustomed to. For instance, in Russia, one ought be ready to pay more for certain items and pay less for others. The country’s economy cannot be labeled as a totally liberal one. Consequently, one should not expect that goods will be free flowing there. In other words, it may be necessary for an investor to prepare for lack of competition on basic service provision. For instance, the real estate sector is below the US standards. Consequently, it would be affordable for one to rent their business premises rather than purchase them.

However, even renting western style offices may not be that cheap because their levels are synonymous with charges in London or even Tokyo. Also, if an investor is merely spending a short time in the country and they are in need of hotel services, then one ought to be ready to pay extra for western style hotels. Additionally, international calls are quite costly in comparison to what other persons in the country pay.

The American definition of decent business meals would be more costly in Russia than it would be back home. For instance, it is difficult for one to get meals that cost less than fifty dollars per head if they are looking for western style servings. (Reykavik, 2006)

It is also essential to note that in Russia, transportation costs are relatively fair. It would cost one a mere five hundred dollars to fly to almost all areas of the country. Additionally, if one chooses to use trains, then they can pay less than fifty dollars to go to any part of Russia.

In terms, of labor costs, Russia’s wages are not as typical as they are for other western counterparts. In other words, it depends on what foreign investors are looking for in this country. If one needs bilingual personnel, then it may be necessary to expect high costs there. Also, if one is located in some of the major cities such as Moscow, then wage costs will be much higher than in the rural areas. Also, the latter costs depend on the part of the economy that one is specializing in. If one is situated in an area that is oil rich, then one would have to pay much more for their labor costs than in any other part of the world. However, if one was looking for workers in an industrial city, then they would have to pay their workers much less.

Additionally, it is necessary for one to invest in labor costs when they are dealing with certain forms of goods or services. When one deals with the information technology sector, then prices may vary depending on the savings that one is looking for. For instance, compared to the United States, it is relatively inexpensive to get computer programmers. However, if one compares these labor costs to the Asian computer programmers, then Russian labor cost may be deemed as expensive. This is because in Russia, computer programmers are not in high demand compared to their western counterparts. Consequently, they have little leverage to negotiate their salaries.

When one considers setting up a brand name in Russia, it would not entail extreme labor costs. This is because in Russia, brands are not as competitive as they are in the United States. Consequently, an entrepreneur who has the aim of creating brand recognition may not find it particularly difficult to do so in Russia than in other parts of the world especially in the western world. (HKTDC, 2008)

All in all, business costs in Russia may be regarded as more of an opportunity than a cost. Any extra charges incurred in labor or costs of production may be offset by the returns that emerge out of the business. Consequently, one should be prepared to part with huge sums of money if they are to get the same huge returns in the end.

Report on opportunities for Market Entry (ROME)

Certain sectors have been emerging as strongholds within the Russian economy in comparison to others. Oil related services and products are particularly rewarding especially in terms of imports. This is because Russia is richly endowed with natural resources and these have the potential to earn high rewards for any international business person.

Additionally, Information technology services can be a hub for an international businessman who may be interested in offering those services to locals. Since the government has offered numerous incentives in this case, then one would certainly have high chances of succeeding if they focused on information technology.

Since Russia is one of the most notable countries in Europe when it comes to scientific research, then investing in such a sector could earn an entrepreneur good rewards, more so when the latter individual is working on exporting scientific related products. (Reykavik, 2006)

Spending power has relatively stabilized in Russia. This was as a result of the kind of reform instituted by the current government regime. Consequently, it would be advisable to consider consumer items especially in the food sector. However, in order to reap good rewards, one ought to consider producing those same items within Russia and not outside. This is because it would be too costly to import the commodity. Examples of consumer items that international businesses could focus on include motor vehicles and electronics.

Market Entry Strategy Assignment (MESA)

In order to do well in Russia, it would plausible to link up with a strategic partner that will ease one’s transition into the area. It should be noted that the market entry strategy can either be through partnering with local Russian firms or the use of international firms that have been working in Russia for long periods of time. Since this case deals with consumer products, then it would be advisable to utilize an international firm that has been working in Russia for longer than ten years. On such example is the Business Information Service for the Newly Independent States (BISNIS). The firm boasts of having fifty thousand clients that have instituted international businesses.

Consequently, it has the expertise required to assist an entrepreneur in setting up their business in Russia. The company has been dwelling on the Soviet Union ever since 1992 when it was formed. This means that the company has been responsible for over three billion dollars worth of exports to investors in overseas areas. Also, sixty three percent of investors in Russia were as a direct result of what this strategic company could offer.

The first issue that will need to be tackled prior to entry is getting a market report on the specific business segment. This will be obtained from the strategic partner BISNIS. Thereafter, it will be important to understand the dynamics of Russia’ business leads, these will also be provided by the latter mentioned partner.

It will also be important to understand the financial intricacies of conducting business in Russia. This is because financing can be very tricky there. Consequently, this is an issue that will also be tackled by the strategic partner.

It should also be favorable to use large scale industrial set ups rather than setting up a small or medium scale enterprise during market entry. This is because the largest movers of the economy in Russia come from the former sector, it could therefore be problematic trying to venture into an area that does not have a lot of government support through the small and medium sized enterprises. (Reykavik, 2006)

The products created in Russia will be marketed partly in Russia and also internationally. Consequently, there will be a need to keep track of the intricate details of the world currency rates, consumption patterns for the commodity among other items that may affect the business in the end. It will be essential to offer high quality items, for the product thus exceeding local standards and creating a lucrative area of businesses in Russia.

Conclusion

Russia is an emerging economy and would be a very lucrative investment area. This is because the country is endowed with natural resources. Also, its business environment is quite feasible. Some of the negative assertion made by western media about Russian business men are stereotypical and do not actually represent the average Russian.

Some of the major imports that one can dwell on include motor vehicles and information technology. Exports that can yield returns in Russia include oil related products and services.

Reference

Donga (2008): North Korean Businesses Thriving in Russia, retrieved from http://english.donga.com

Fetsenko, V. (2008): Russia’s Unique Business Environment, retrieved from http://www.executiveplanet.com/index.php?title=Russia:_Russia’s_Unique_Business_Environment_-_Part_

Reykavik, T. (2006): Aspects of the business environment in Russia, A report for the Trade council on Russia, 12, pp 98-105

HKTDC (2008): Re-emergence of the Russian economy, retrieved from http://in.hktdc.com

Kitov, V. (2007): Russian software and hardware firms aim to copy India’ success, The Russia Journal, 4, 22

Tuohy, P. (2008): The Russian Information Technology Report, http://wtexecutive.com

Vista (2008): How to set up a business in Russia, Foreign Business Support report, 12, 98

Ganske, C. (2007): Western Media missing the real story in Russia, Discovery Institute report, 13, 27

Introduction

The essay looks at key human resource issues likely to be faced by Macro X company upon expanding into the international market. Owing to the fact that the company already markets its products in the European market, then chances of succeeding in the international market are high. Besides this, the company has a solid human resource background characterised by performance management systems, strong commitment to learning and development, mechanisms for employee involvement and sophisticated selection and recruitment methods. (Wilkins, 2004)

Numerous companies have considered international expansion as an option both within the European Union and without. This is because international expansion provides millions of consumers at a business’s disposal. However, these benefits do no come easily. The essay shall examine the challenges, methods of tackling these challenges and organisational changes that can enhance internationalisation.

Key HR issues likely to be faced by Macro X

Twenty years ago, international business had been a reserve for large multinational corporations alone. However, globalisation has changed this attitude, these days even small companies consider international expansion as a viable option. Going global presents numerous advantages but there are still so many other human resource issues that the company has to deal with.

Companies that choose to go global have the opportunity of harnessing opportunities that they would not have access to in their own markets. If Macro X chooses to go global, then they will have heightened their performance over and above their competitors. Besides that, the company will get an opportunity to access suppliers who may be more cost effective than their local counterparts. As if the latter are not enough, going global will allow the latter company to mitigate its risks. This is because by marketing one’s products across a wide range of companies, then one reduces their level of dependence on a particular supply chain, production method and or sourcing method. Going global makes it possible for companies to access fresh talent pools; For Macro X, they stand to gain access to some of the creative minds in the computer games industry especially from the United States and the Asian market. By doing this, the company will be increasing their growth rates.

Initial project plan for organisation’s internal strategy

Given the above advantages, the latter company must make several decisions regarding their expansion strategy. First, the company could analyse which countries are the most profitable or the most promising. The company also has to consider the most appropriate time to make this move. Besides, that, it is also necessary to look at some of the macro economic factors that are likely to affect the company’s expansion process. This means that an in depth look at how global trade is currently being run needs to be taken into account. In line with these considerations, Macro X also has to take into account the political issues within target markets. It is most appropriate for the company to consider countries that have earned a reputation for being economist/ investment hot spots. Besides that, the company needs to look at issues such as climate or health threats. (Brewer, 2003)

Given the current economic conditions, it would most favourable for Macro X to consider the Asian countries. Examples here include Thailand, India and China. These latter mentioned countries have attracted numerous foreign investments owing to their incentives. Besides that, the latter countries’ economies have been performing very well in the past years. This means that Macro X will have a cushion for their operations  there and will not have to worry about regulatory concerns. The latter countries are also quite viable owing to the availability of computer related items i.e. it is dependable there. The quality of labour within these countries is also quite high and is very affordable in comparison to workers in the European market. Foreign exchange risks in these countries are also relatively low compared to what other companies offer. These facts indicate that Macro X stands to minimise problems in the supply chain by using such an approach. . (Wallerstein, 2000)

Macro X should also look at the most applicable business model to use in the international market. The company needs to be ready for handling numerous markets at the same time. The company should also focus on creating a substantial market base within the respective market countries. This is because one must look at these three options

In the case of Macro X, it would be more appropriate to create new brands for the local market. This is because if the company adopt purely international tactics in the target markets, then it will lack a local touch and may never be fully accepted.

The company should also change its business processes in such a manner that it incorporates the respective locals. This is because doing so will encourage diversity. Successful multinationals are those ones that have a diverse workforce. This goes a long way in ensuring that problems are solved using a  conceptual framework. Macro X should realise that the use of a formulaic approach to problem solving will not work in the international arena.

It is necessary for the company to incorporate local business cultures within its own operations. If the company carries its business practices from the European continent into other international markets without changing them, then it is likely to face numerous hurdles while implementing them. Consequently, it would be more favourable to change business culture to suit respective environments. In line with the latter strategy, the company should also incorporate the rule of law within those respective countries. Some countries have very high standards for the rule of law while others do not. Besides that, the company should be more ready for different financial systems. Some countries highly regulate their money market and accessibility to financial markets in such countries may be difficult. It would therefore be necessary for the company to look for alternative methods of financing itself if the laws within the target countries happen to be less stringent. (Dunning, 2001)

Another crucial aspect that will form part of the global strategy of the Macro X company is the issue of governance structures. Once the company goes global, it will be catering to a wider range of stakeholders. Consequently, there will be need to integrate them in the governance structures. In line with this thought, the company should take corporate social responsibility very seriously. This means that the company should apply ethical standards and procedures when doing business with local contractors and suppliers too. On top of that, the company needs to ensure that they exceed local standards of production because they need to have an edge over their competitors.

Macro X should also be aware about the reporting duties to the mother company in the UK. This will be largely governed by the stakeholders involved and the nature of the regulatory laws within the respective countries.

Horizontal integration

The company should consider horizontal integration as a viable option where horizontal integration in this case refers to the process of acquiring businesses that operate within the same level or category of the value chain. The company should examine all the products and services that relate to it and see which ones are most viable. Taking the example of a company such as Standard Oil Company of the US; the company horizontally integrated its production process by acquiring forty refineries. The company chose the most directly related service i.e. companies that deal with oil purification. Another example of a company that horizontally integrated was the Harley Davidson Company. This company was a motorcycle manufacturer but decided to venture into motorcycle utilities by acquiring companies that specialised in those products. (Buckley and Casson, 2006)

Macro X should consider horizontal integration as an option because they stand to benefit tremendously from such an approach. If the company chooses to horizontally integrate, then they can benefit from economies of scale. The company will increase its production capacities thus bringing about greater savings from these larger numbers. The second advantage of horizontally integrating is that the company will tap the economies of scope. This refers to the use of similar resources for the same product. The company will have the benefit of synergising the common resources with companies they plan to horizontally integrate with. The other major advantage of such an approach is the fact that the company can gain greater access to supplier chains and other members of the value chain. The latter would have been exceptionally difficult if the company tried to access the market on their own, as they would have minimal influence within those foreign markets. Besides that, the company will also go a long way in ensuring that they have reduced the cost of doing international trade. This will be possible if the company opts to transfer some of its production services to countries that charge lower costs. Since the company specialises in the production of personal computers, then it would be favourable to take the technical aspects to Asian countries and direct its other types of services to the western world which speaks the same language as their mother company.

It is possible for the company to take advantage of some of the perceptions that consumers have about their products. For instance, the company would still offer a wide range of products under a similar name after establishing themselves within the respective market. This means that synergy need not apply to only one particular product alone. (Wallerstein, 2000)

It should be noted that the pursuance of horizontal strategies cannot be considered a bed of roses for Macro X. the company is likely to encounter some problems along the way. Therefore, it is necessary for the company to study respective countries and then decide whether to horizontally integrate its products there. For instance, the company is likely to have problems if it chooses to horizontally integrate in a country that is saturated with the commodity. In this case, the company may face anti-trust issues where it may loose millions in court battles with companies who feel threatened by their integration. Therefore, horizontal integration will not wok in all the foreign countries chosen for investment.

It should be noted that some products seem connected but they may not be in actual sense. Taking the example of computer software and hardware, one might imagine that horizontally integrating companies that deal with computer hardware and software may bring about economies of scale. However, this perception is quite misleading. As a matter of fact, numerous companies have wasted their resources doing this yet they got no substantial economic benefits. The company could integrate seemingly related commodities only after doing a thorough research in that particular country to ensure that they will receive tangible benefits by doing this.

It is essential for the company to remember that the benefits of horizontal integration do not come easily. It will take a while before the company begins realising cost savings. Consequently, the company should stick to its company strategy as it expands the business because this will be the guideline for implementing horizontal strategies. Jumping from one approach to another could only bring about problems for the respective company.    (Alfaro, 2003)

Vertical integration

Vertical integration is another option that the company should consider while entering the international market. This may be described as the process by which firms acquire companies that operate in different levels of the value chain. It should be noted that integration can occur either forward or backward. There are a variety of reasons why Macro X should consider this method as a viable option. First of all, the company will reduce the level of uncertainties in certain parts of the value chain. Additionally, the company will reduce costs of conducting transactions between these levels of the value chain.

The issue of vertical integration has brought about great benefits. Taking the example of the United States; this country created a amass market during the nineteen sixties only through the process of vertically integrated corporations The corporations had the following elements:

At that time, the latter qualities necessitated the use of various divisions within single enterprises thus bringing about the notion of vertical integration. (Williamson, 2001)

When Macro X chooses to vertically integrate their commodities and services, then they will be making an otherwise external process to become an internal one. This means that the company will have acquired an advantage that their competitors can only imagine. This is possible owing to the fact that vertical integration will be a way of allowing the respective company to respond to the technical aspects of their operations. However, it should be noted that other industries necessitate greater levels of coordination than others, consequently, if vertical integration occurs across borders, then it would be difficult to coordinate them. In this case, the computer games industry is one such industry. The company would be faced with major difficulties trying to deal with different aspects of production from different countries. This means that the company will only reap the benefits of vertical integration if it restricted these to value chain levels within the same country.

Despite these anomalies in the process, the firm will be able to enhance their revenue through the approach. Additionally, the company will also avoid the issue of perfect competition. Perfect competition makes Macro X particularly susceptible to normal levels of economic returns. The returns will be greatly increased if the company chooses to vertically integrate their products or services.

The following aspects are key to the success of the company is it considers to vertically integrate

The company ought to ensure that their vertical integration strategies are unique. This means that the company ought to look for new ways of transacting using this approach. By so doing, the company will have made their benefits above average. However, the definition of rarity largely depends on the value created by the integration and not on how common this kind of strategy is in the industry. (Wells and Fagre, 2002)

In the event that the vertical integration strategies are not that rare, then the company should ascertain that they are at least costly to imitate. By doing this, the company will have substantially improved their competitive levels.  It should be noted that the definition of rarity does not just depend on the nature of the vertical integration; instead, it depends on the sort of value created by the commodity if a competitor chooses to imitate it. Rarity comes about as result of historical uniqueness that is only synonymous to a certain company. It also comes about as a result of the social complexity that is unique to the commodity. A service or product maybe socially complex when small numbers of marketers exist. Besides that, if the capital requirement required for the service are prohibitive. Besides that, it is also possible to create rarity by causal ambiguity.

Vertical integration may be done either through internal development or through acquisition. In internal development, the company chooses to change the way they go about their production process. However, in acquisition, the firm owns a supplier. But in either case, the company will expand its boundaries so as to accommodate the new team player. (Alfaro, 2003)

The company should be very careful about organising their functions. This means that the level of competition and cooperation between these separate entities needs to be kept in check. The time horizon is another thing that should be organised so as to make vertical integration effective. Lastly, the company should ensure that the desired value of the chain will be achieved and that there will be effective cooperation between the two functions.

Conclusion

Profits may only be realised after considering the various obstacles and challenges. These include language barriers, cultural differences, currency differences, availability of skills, disparities in management structures between the investing country and the target country, legal obstacles in the target country, administrative differences and many other issues. The essay has examined the possible options that Macro X company can choose to counter these challenges and human resource issues that the company is likely to encounter when going global.(Dunning, 2001)

Reference:

Alfaro, L. (2003): Foreign Direct Investment and Growth: Harvard Business School

Brewer, T. (2003): Market Imperfection, Government policies and FDI; International Business Studies Journal, 24, (1), 101-120

Buckley P. and Casson, M. (2006): The Future of Multinational Corporations; Holmes and Meyer

Dunning, J. (2001): The Multinational Enterprise; Allen and Unwin

Wells L. and Fagre N.  (2002): Bargaining power of multinationals and host governments; International Business Studies Journal, 13, (2), 9-23

Williamson, O. (2001): The Vertical Integration of Production; American Economic Review, No. 71, 112-123

Wilkins, M. (2004): The Maturing of Multinational Enterprise; Cambridge: Harvard University Press

Wallerstein, M. (2000): The Capitalist World Economy; Cambridge University Press