NAME: WANG YANDONG
SUBJECT: INTERNATIONAL BUSINESS
STUDENT ID: 201402010002
The case: Are we on the fun ship yet?
1. What global forces have contributed to the growth of the cruise-line industry? 2. What special steps has Carnival Cruise Lines taken to benefit from global social changes? 3. What are some of the national differences that affect the operations of cruise lines?
What is international business?
International business involves all commercial transactions-private and governmental-between parties of two or more countries. Global events and competition affect almost all firms-large or small. However, the international environment is more complex and diverse than a firm’s domestic.
Factors in increased globalization
1. Increase in and expansion of technology.
2. Liberalization of cross-border trade and resource movement. 3. Development of services that support international business. 4. Growing consumer pressures.
5. Increased global competition.
6. Changing political situations.
7. Expanded cross-national cooperation.
Global forces contribute to the growth of cruise-line industry. Considerable economic and social effects
Significant economic effects of the cruise industry, according to statistics international cruise organizations, as in 2008, revenue from the U.S. cruise to get up to $ 20.4 billion, and created three hundred fifty-seven thousand jobs. In developed countries, the cruise industry clustering, network, global as well as its diversity plays a significant role in the growth. At the same time, the rapid development of cruise tourism, cities and regions to showcase the city where international image, improving the quality of leisure, promote international cultural exchange has important significance.
. Strong tourism demand
Just two decades, the number of cruise tourists worldwide quadrupled, strong demand for cruises. Attendant, cruise lines and travel agencies involved in dramatic increase in the number of cruise, cruise into use the number and size has also been increased to varying degrees Good development opportunities
Current world tourism market has entered a new phase, tourists on leisure experience increasingly high demand, the traditional tourism will gradually be replaced by leisure experience in a high-end tourism products, tourism and cruise tourism is precisely in line with the current fashion.
The specific steps has been taken to benefit from global social changes by Carnival Cruise Lines. Carnival operates all over the world, it has the advantage of treating the whole world as a source of both customers and supplies. Nevertheless, its widespread operations make it vulnerable to global occurrences in politics, health, economics, and natural disasters. At the same time, the fact that ships are mobile gives Carnival the flexibility of moving its capital assets where they can best services its needs.
On the other hand, Carnival pioneered the concept of cruising for the masses, this does not imply a complete lack of formality. Carnival has one or two formal nights per week, theme dinners based on nationals cuisines, a variety of musical entertainment, games and clothes, spas, athletic facilities, and specialty performances, Because cruises occur outside the confines of any country, cruise lines avoid any national laws restricting gambling, thus Carnival ships have casinos. Passengers also the change to shop on board for merchandise from all over the world. For instance, art dealers hold auctions and seminars for cruise passengers. One such dealer, Park West Gallery, sells about 300,000 pieces of art per year one cruise ships. As one may expect, the average price per pieces sold is higher on the more expensive cruise.
Economic conditions can affect both demand and costs. The cruise line industry is part of the larger...
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