Group Project Homework: Ch 1 page 28
10) Although forces in the foreign environment are the same as those in the domestic environment, they operate differently. Why is this so?
The concept of forces in business should affect the foreign and domestic environment the same, but in actuality the forces in the two environments act differently. First the values of differing countries can create rifts in businesses around the world. Many incidents occur where a country will place an embargo on another country for their differences in values which halt trading. Also a foreign might be very difficult to assess. This means there are laws or political forces in place that foreign investors have to work around. Furthermore forces can be interrelated because a foreign market could have abundance in labor but the work force is not very skilled. The management would then have to choose whether to install specialized machinery or hire a larger labor force and install less expensive machinery.
11) What examples of globalization can you identify within your community? How would you classify each of these examples (e.g., international investment, international trade)?
Globalization exists everywhere in my community, especially living in Southern California. Almost everything I use or own has been made possible by globalization. Many companies in my community, including the one I work for, have their headquarters here and have plants that exist overseas where they are produce a quality product at a cheaper price. Since the company has its manufacturing plants overseas the majority of the materials used are purchased from a foreign market.
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