How the Concepts of International Business Affect Transactions
How the Concepts of International Business Affect Transactions
BUSB348 International Business
University of Redlands
A. Introduction Halfway through my International Business course, I was able to look at my 2005 purchase of BMW 525 in a new light. Therefore, I now have a clearer understanding of how international business concepts affect me as a consumer, specifically in the area of availability of choice between domestic and foreign brand products. Armed with this new information, I can better appreciate the impact of globalization on my purchases. In this paper, I will attempt to illustrate how a number of international business concepts played a significant role in my ability to purchase my BMW eight years ago, and how my choice may differ considerably today. I will venture to carry out this analysis based on some of the issues we have covered in the class. Before beginning my analysis, a brief summary of the BMW credentials is in order. BMW is one of the leading manufacturers of cars and motorcycles in Europe headquartered in Munich. The company primarily operates in Europe and the Americas. Besides automobile manufacturing, the company also provides information technology and financial services. The company has its manufacturing plants spread over 13 countries on four continents and showrooms across 150 countries worldwide. This allows the company to take advantage of favorable labor rates in developing countries to lower its production costs, as well as to set up platforms to facilitate the logistics of importing vehicles around the world. Chances are that my BMW 525 was produced in the plant located in Toluca, Mexico. It was then shipped to California tariff-free based on NAFTA provisions. I bought my car at the time when the car market was swarming with good quality cars. As a matter of fact, by mid 2000s, the quality of all (especially the quality of the U.S. automobiles) improved dramatically from the late 1990’s. This
BUSB348 International Business
University of Redlands
A. Introduction Halfway through my International Business course, I was able to look at my 2005 purchase of BMW 525 in a new light. Therefore, I now have a clearer understanding of how international business concepts affect me as a consumer, specifically in the area of availability of choice between domestic and foreign brand products. Armed with this new information, I can better appreciate the impact of globalization on my purchases. In this paper, I will attempt to illustrate how a number of international business concepts played a significant role in my ability to purchase my BMW eight years ago, and how my choice may differ considerably today. I will venture to carry out this analysis based on some of the issues we have covered in the class. Before beginning my analysis, a brief summary of the BMW credentials is in order. BMW is one of the leading manufacturers of cars and motorcycles in Europe headquartered in Munich. The company primarily operates in Europe and the Americas. Besides automobile manufacturing, the company also provides information technology and financial services. The company has its manufacturing plants spread over 13 countries on four continents and showrooms across 150 countries worldwide. This allows the company to take advantage of favorable labor rates in developing countries to lower its production costs, as well as to set up platforms to facilitate the logistics of importing vehicles around the world. Chances are that my BMW 525 was produced in the plant located in Toluca, Mexico. It was then shipped to California tariff-free based on NAFTA provisions. I bought my car at the time when the car market was swarming with good quality cars. As a matter of fact, by mid 2000s, the quality of all (especially the quality of the U.S. automobiles) improved dramatically from the late 1990’s. This
References: Hill, C. W. L. (2013). International business. (9th ed.). Boston, MA: Irwin/McGraw-Hill. Johnson, G., Whittington, R., Scholes, K., & Pyle, S. (2011). Exploring strategy: Text & cases. Harlow [etc.: Financial Times Prentice Hall. Retrieved from www.bmwgroup.com/bmwgroup_prod/e/0_0_www_bmwgroup_com /investor_relations/co rporate_news/news/2014/vertriebsmeldung_januar_2014.html