International Business and Globalization Theory

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CHINA GOING FROM A COMMUNIST COUNTRY

THE RISE OF JAPAN IN THE 80S AND WHY IT DIDN’T WORK

SINGAPOREAN GOVERNMENT FOCUSED MARKET.

GLOABLIZATION OF MARKET
GLOBALIZATION OF PRODUCTION

Asisn cultures diner and again and again is high context
• In China communication tends to be very efficient because of their information-flow at work and in privacy. They discuss everything in advance and consider meetings as an official "ceremony" where the already commonly agreed decision will be announced. This is important in the way of "giving and keeping face".

• The Americans and Germans in contrast inform the participating attendants in a meeting about the hard and necessary facts. The decission-making process takes place within the meeting.

Japan is very low context

THE DIFFERENT TYPES OF MARKET
FOCUSED MARKET ETC

Case study

Trade liberalisation has pulled many developing countries into emerging markets in the last decade. Jim O’Neil, an economist and chairman of Goldman Sachs, who forecast global economic domination by certain developing countries – in particular Brazil, Russia, India, and China (BRICs) – now challenges us with notions of a new phase of global economic development. The anticipated international alignment of Mexico, Indonesia, South Korea and Turkey (MIST) is representative of the new wave of emerging markets.

These four countries, all members of the G20 group, are clearly a powerful rhetorical agglomeration. The influence of MIST is evident upon analyses of their macro and micro political-economies. Due to our trade and diplomatic relationship with the MIST countries, it is important that Australia understands the implications of this economic bloc.

Mexico was one of the last decade’s fastest growing nations. Membership of the North American Free Trade Agreement (NAFTA) has brought some positive outcomes to this nation. Mexico’s proximity to the US, and links with Central and South American markets, as well as its Hispanic culture, underpins international investors' and multinational corporations' choice of Mexico as a strategic investment location. The country’s inflation rate is considered ‘normal’ as far as developing nations go.

Nevertheless, international investors believe that failure to liberalise the labour market, improve a paltry tax take, and attract more foreign investment could condemn Mexico to years of weak growth and threaten its credit rating in the foreseeable future.

As it stands, Mexico’s political instability is, paradoxically, likely to bring about tremendous and positive structural change.

In the forthcoming election this year, it is expected that Partido Revolucionario Institucional (PRI) will win. The party, has promised to ratify higher taxes and more private investment to state-run industries, such as oil and other natural resources, despite blocking these reforms over the past decade.

Indonesia, the most populous Muslim nation in the world, is one of the rising stars in the global economy. With a population of 250 million, and its generous endowment of natural resources, this country is clearly one of the key markets for production and consumption. Major strengths of Indonesia include its geopolitical links with the region and its leading role in the Association of South-East Asian Nations (ASEAN), which will become the ASEAN Economic Integration (AEC) in 2015. These place Indonesia as a hub of the south-east Asian region.

Reuters suggested in early 2012 that Indonesia, economically speaking, has plenty of positives. Its economy held up better than that of peers when Europe’s debt crisis intensified. A bounty of natural resources and an expanding middle class are the foundation for continued growth. With the inauguration of the AEC, Indonesia will become a regional mega market for both natural and human resources.

[pic]Julia Gillard and South Korean President Lee Myung-bakAAP...
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