Economic globalization

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  • Publié le : 20 juin 2010
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World Economy File

Benoit Vault-Deschamps, Ekaterina Yushina, Aurore Chamaillard, Tamlyn Holmgren
2nd year ESCEM Bachelor, Anglophone section



Economic globalization is the dominant trend of the world today, which brings about significant commodity and production flows. No matter where it is one country or one region, theycompletely realize that all countries and regions must participate in the economic globalization in order to achieve fast economic development. Practices repetitively prove that the globalization brings about chances of fast development for developing countries. In 2007, the Seventeenth National Congress of the Communist Party of China definitely declares: “Insist on the primary policy of reform andopening-up; integrate ‘bringing-in’ with ‘going-out’ properly; enlarge opening-up fields, optimize opening-up structure, and improve opening-up quality; perfect the open economic system that emphasizes on mutual connections and interests, safety, and high efficiency; cultivate new advantages in global economic cooperation and competition under the economic globalization.” An enterprise“going-out” firstly should select an appropriate business operation mode based on self-characteristics. Then, guided by the mode, an enterprise can perform international operations.
What is “going-out”? It refers to a process of an enterprise stepping out of domestic market and entering world market. It includes foreign trade, foreign investment, export of labor service, and foreign contracting. What is“going-out” business mode? It refers to former successful experiences and operations of enterprises in international operations. Enterprises may copy or take references from these experiences and operations according to self-characteristics. Experiences and operations are different for enterprises. Here, we probe into the “going-out” mode of some enterprises that knew difficulties doing it.

1)Choisir le cas d’une entreprise: quels sont les facteurs qui expliquent pourquoi l’entreprise a été s’implanter dans un autre pays? (exemple ancien, pas récent)

The penetration of a product on an oversea market can face problems of transposition of the marketing policy from one country to another. Consumer habits can indeed be very different according to countries: it is the case for food habits.The penetration of products will then be made with difficulty, the problem being to know how to position themselves on the overseas markets. So, the introduction of DANONE in England was a relative failure because; the yoghurt was judged by consumers too sweetened, too liquid and too low in fruits for the British consumer. Furthermore, DANONE had transposed the French size of the jar: this ended ina four-ounce jar and a quarter instead of five ounces for the English manufacturing. DANONE maybe should have opted for an adaptation strategy even if it is more expensive than a standardization strategy not adapted for the UK market.

2) Choisir le cas d’une entreprise : quels sont les facteurs qui expliquent pourquoi l’entreprise a été s’implanter dans un autre pays ? (exemple récent) Ilfaut que les facteurs expliquant la délocalisation soient différents que pour l’entreprise de la question 1.

There are 3 main reasons, which will push a company to multinationalization. The first one is an economic reason: become established in multiple countries where the costs of labor, raw materials are cheaper. The second reason is in office of the demand: I become established where there isthe demand; it is the case of the mass-market retailing in particular. Finally the third reason: the setting-up in countries where there is a special raw material, it is not really a choice but an obligation of setting-up.

EDS was founded in 1962 in the United States. EDS is born of outsourcing, she claims to be behind this policy of widespread and global business today.
The founder of...
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