International Business Actions Internationalisation T.docx
Group 1 PPT 1
1. Learning to Specialize in the New Global Economy
Images Courtesy of: “Made in” https://www.1min30.com/wp-content/uploads/2014/06/made-in.jpg “Dominican Logo” http://studycalifornia.us/school/dominican-university-of-california/
Group 1: Rick Asfoor, Jelani Bertoni, Joshua Johns & Ami Thomas
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2. Offshoring VS Outsourcing(Blank)
Learning to Specialize in the New Global Economy
“In its broadest sense,
offshoring involved the
transfer of job activities
abroad…” (The Offshoring of America
Case Study)
3. Possible Solutions:U.S.
- Rethink Current Education
Systems
- Spread Work Ethic, not US Jobs
- Expand Free Trade
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Learning to Specialize in the New Global Economy
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http://americanfreepress.net/?p=18148
4. Incentivized Offshoring
Learning to Specialize in the New Global Economy
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http://i.usatoday.net/communitymanager/_photos/green-house/2010/04/21/oildependencex-large.jpg
7. Offshoring and Mexico
From the Case:
- North American Free Trade
Agreement (NAFTA)
- Foreign Direct Investment in
Maquiladoras increased
- U.S. access to cost efficient
manufacturing
- The Offshoring Argument
Learning to Specialize in the New Global Economy
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“NAFTA” Image From http://immigrationcanada.pro/wp-content/uploads/2013/09/usmexicocanada.
jpg
8. U.S. & Mexico Today
- Mexico is the 2nd
largest export market
for the U.S.
- North American Leaders
Summit
- Mexico-U.S.
Entrepreneurship and
Innovation Council
(MUSEIC)
Learning to Specialize in the New Global Economy
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Image Courtesy of: https://pbs.twimg.com/profile_images/458292458011373568/7V0tK6lT_400x400.jpeg
9. China
China’s Special Economic Zones
-Special Tax Incentives
-Relaxed Chinese Labor Laws
-Liberal Economic Policies
-Import of Technologies &
Management Skills
Learning to Specialize in the New Global Economy
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10. Benefits to China’s Offshoring Efforts
- Outward Bound exports of China’s
foreign investment increased from
1.1 Billion in 1985 to 57 billion
in 2005.
- China’s economy grew at an average
annual rate of almost 10% for 29
years.
Learning to Specialize in the New Global Economy
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11. Negative Effects on China’s Offshoring
- Arable land was being used for development and industrialization,
which forced small landowners and farmers to vacate their property.
- In 2006, the United Nations Environmental
Program labeled one particular SEZ, Shenzen
a “Global Hotspot”
- Accelerated economic development created
regional disparities, which led to economic and
social problems
- (2007- Mattel Corporation was forced to recall
over 13 million toys due to lead based paint used
by a vendor, in order to cut costs)
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12. Recommendations/ Solutions
- Incentivise companies that promote the highest standards
for environmental and social practices.
- Place a cap on development and industrialization for SEZ’s
in order to offset the amount of farmers and small landowners
who are being displaced.
- Designate a certain amount of income earned by
offshoring companies to be given to local economies
throughout different regions in China in order
to ensure stable growth on the local level.
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Learning to Specialize in the New Global Economy
13. India
Effects of Offshoring/ Units of Analysis
Learning to Specialize in the New Global Economy
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Domestic Foreign
Firm Level Development of strong business
services and technology sector,
Venture capital backed start-ups
Use of low cost white collar skills
and personnel
Country level
Influx of foreign capital and
competition to boost economy,
rising standard of living,
reducing poverty
Advantage of opposite timezone
from U.S.
Prevalence of english simplifies
international communication
14. India’s Opportunities
-Positive influences of state policies, higher education, tax
incentives, increased foreign investment, growing economy,
business services and technology, financial attractiveness
Learning to Specialize in the New Global Economy
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Above:From The Offshoring of America Case
Right: From WEF Global Competitiveness Report 2014-15
15. India’s Challenges
-Problems of financing, infrastructure, corruption, security, poverty, domestic business environment
and cultural barriers
Learning to Specialize in the New Global Economy
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From WEF Global Competitiveness
Report 2014-15
From Transperency.org Corruption Perctption
Index 2014 .1
1.http://www.transparency.org/cpi2014/results
2.http://www.doingbusiness.org/data/exploreeconomies/india
In 2015 India Ranked 142 out of 189 countries in terms of Ease of Doing Business. 2
16. Suggestions for India
More attention should be focused on:
-Developing domestic businesses and markets
-Raising the standards of living/ eradicating
poverty
-Utilizing tax revenues to modernize
infrastructure
-Expanding educational opportunities to
foster more sectors of the economy
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Learning to Specialize in the New Global Economy
Main Point:
The more Indians who are educated, engaged in the economy, and able improve their standard
of living, the stronger India will be as a country and the more they will be able to offer
to the global economy.
Image of India Flag Image Couresy of: http://www.webinfonews.com/wp-
content/uploads/2014/07/India-Flag-7.png
17. Conclusions
For Success in an Increasingly Global Market
- Countries need guiding vision for development and specialization to
remain globally competitive.
- It is important to develop and protect local markets and industries in
addition to attracting investment and offshoring
- In the effort to globalize countries and firms should not lose sight of
environmental and social impacts of business practices such as
offshoring both domestically and internationally
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