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Business Globalization
Business globalization is generally connecting economic regions worldwide in a network of trade, communication and transportation. The companies that use these networks manage resources on a global scale to meet their financial goals.
1,232 Questions
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Why is globalization good for America?
Globalization has led to strong reduction of the "American Dream."
The United States used to be one of the strongest manufacturing and textiles producing countries in the world. Now, the millions of jobs in the steel mills, coal mines, and energy sector are being outsourced overseas.
Americans, especially the middle class, are finding themselves in tighter and tighter positions economically. Add to the equation that the American dollar continues to depreciate at a rapid pace and the whole economic avalanche of destruction continues for the average American.
What are examples of political globalization?
Political globalization is when governmental action occurs on an international level. Examples of this include cooperation through the United Nations, an international intergovernmental organization that provides a forum/template for countries to discuss global issues and decide how to act (or not act) in a multilateral way. The European Union is also a great example of political globalization, as member countries submit themselves to a common governance system, creating in effect a regional government while still maintaining national sovereignty.
Why study international Relations?
million dollar question...since we use phrases like "the world has turned into a global village" etc the very purpose or psyche behind this phrase is a mindset that we the living people of the world are integrated thus this approach leads us to gather knowledge in our close proximity in the first instance and as the interest prevails we look for different dimensions for instance what is a nation state? what is our national interest? how can we get a perfect equilibrium through Balance of Power? what is the international parameters to adjudge certain issues and how the law of the land contrary to the international law? as the quest for knowledge increases the philosophy of need to know improves.
well this is my humble opinion, you might not agree with this, but this is what i believe.
Ahsan Mughal
Karachi Pakistan
ahsaan69@hotmail.com
A list of multinational corporation in Jamaica?
burger king, kentucky fried chicken kfc , the chain of sandals hotels ,wendys pizza hut .
Difference between Eurobanks and domestic bank?
Eurobanks operate in many different countries, accepting and lending money that is denominated in other currencies to that of the country involved. Eurobanks are not subject to any one jurisdiction but do face more risks (such as country and sovereign risk). Eurobanks generally offer high interest rates on deposits and lower rates on loans (due to the competitive nature and the fact that they are viewed as riskier investments)
Platt price for D2 at Fujairah?
today 6th August 2012 is the price you are asking for at platt Fujairah about 1010 USD / MT
Advantages or disadvantages a trendy new high-tech corporation?
Advantages of a trendy high-tech corporation are that it would be at the forefront of the business world, giving clients access to the most up-to-date changes in the industry. Disadvantages could be that the corporation may be limited in its ability to evolve and may become irrelevant.
How does liberalisation of trade and investments policies helped the globalisation process?
Liberalisation of trade and investment policies has helped the globalisation process by making foreign trade and investment easier. Earlier, several developing countries had placed barriers and restrictions on imports and investments from abroad to protect domestic production. However, to improve the quality of domestic goods, these countries have removed the barriers. Thus, liberalisation has led to a further spread of globalisation because now businesses are allowed to make their own decisions on imports and exports. This has led to a deeper integration of national economies into one conglomerate whole.
A domestic environment is something that we use in dailly life:
eg:
phone
pen
computer
What are the ethical traditions of every country?
The time required for research and presentation would make the complete answer a treatise rather than a simple response.
Even if we simplify and go for religions and their ethics, we would end up with a vast multitude of different ethics. As people interpret religious texts differently, various countries, and even within the same country, interpret the same text differently.
A crude example of this could be Rape:
In most of the western world, rape is a punishable offense. Most normally, the victim is a female, and the male performing the rape will be punished.
In some muslim countries, their interpretation is much more harsh, where they look at the female as an offender too, since she has had sex, often without being married.
In some countries, this is punishable by death - and even if the "public" law is against so called Sharia Law, the smaller local communities within a country might sentence death-penalty due to "tradition"
Even some highly westernized and modern countries like the United Arab Emirates stick to the punishment of rape-victims, although not death-penalty, it is tradition that the female victim get a stronger/longer sentence than the male offender.
The bible and other religious books are in most a code of ethics to live by. The problem is that the interpretation can be so different from person to person, hence we would need the size of 100 bibles at least only to describe and explain the interpretations of all the ethics, and this only for the bible.
What is the definition of own outright?
To own something outright, or "free and clear," is to own it without any liens or other debts attached to it, like owning a car or a house for which the loan has been paid off - to have "clear title."
Immense Network Universe Great Business Chances?
Qiuyang Net & Info Industry Co. Ltd. belongs to Liaoning Qiuyang Group, which is famous for its translation and education in northeast China. It is the only professional translation and publishing company that works through the Internet in northeast China and it has business links with Los Angeles, Hong Kong, Tokyo, Seoul, etc. We have nearly two thousand full or part-time translators, who could handle over 20 languages in some 30 special fields of translations. Indeed, after the continuous hard work, the company now is a channel for the communication between China and foreign countries, a bonding bridge to the world as well as a window to the international market.
Localization is the best and the most direct way to enlarge the possibility to enter Chinese market. If you intend to build your Chinese website, or prepare to appoint someone to deputize for your corporation in China, we are the best choice. We could take the job only because we are capable of that. Maybe you will be interested in doing it after reading the introduction of our company. You can rely on us, and we do hope we can communicate with each other and cooperate in the near future.
China Qiuyang translation company contacts:
Address:FI.6,nengyuanbld.,122qingnianst.,Shenyang,110015,Liaoning,china
Postal code:110014
Telephone: +86-024-22835133-816，+86-024-23853665
Fax: +86-024-22705544
Translation company website：www.fanyi15.com
Qiuyang corporation website: www.qiuyang.com
Contact person: Yuebin Bai
E-mail: qiuyanggroup@163.com
Riordan Manufacturing Merger Acquisition SWOT Analysis?
Merger Creates Wealth
For Riordan Manufacturing to gain from a merger it has to create synergies. Synergies are anticipated benefits from the merger. Basically shareholders of both firms must come to a consensus that merged stocks is more beneficial than holding to individual share of the merging companies Factors contributing to a pro-merger argument are: (1) economy of scale; (2) tax benefits; (3) capitalization on unused debts; (4) complimentary in financial slack; (5) removal of ineffective managers; (6) increased market power; (7) reduction in bankruptcy costs; and (8) buying below replacement costs merger.
Economy of Scale.
"Wealth can be created in a merger through economies of scale." In a typical merger number of operational layers become one; thus, redundancies are eliminated. Also, by merging two entities better producing resources are kept and unwanted financial burdens are phased out.
Tax Benefits.
Tax reduction through a merger is in fact creation of wealth.There are two ways that tax-benefits can create wealth: (1) utilization of operation loss tax-credit (forward and back); and (2) reevaluation of depreciated assets.
Utilization of operation loss tax-credit.
In a merger, it is stipulated that one of the two merging firms has a weaker financial status; and the other merging firm has strong finances. Tax credits gained from operation loss by one of the merging firms can compensate for tax liabilities incurred by profitability of the other firm.
Reevaluation of depreciated assets.
In a merger, previously depreciated assets can be revalued and tax benefits arising from increased depreciation of revalued assets create wealth.
Capitalization on Unused Debts.
Companies for various reasons may not take maximum advantage of their debt capacity. Merger creates climate of development opportunities, and a strong management that emerges from the merger can increase debt financing, and fully utilize the tax benefits associated with the increased advantage.
Complimentary in Financial Slack.
"When cash-rich bidders and cash-poor targets are combined, wealth may be created." A cash-poor entity has a more difficult time accessing market capital; therefore, a merger allows positive net present value project to be accepted.
Removal of Ineffective Managers.
Merger opens the door for a wider selection of human capital, especially selecting effective managers. If one of the merged firms has ineffective management, as a result of the merger, more effective managers are kept and others are marginalized or eliminated.
Increased Market Power.
"The merger of two firms can result in an increase in market or monopoly power." Although a merger that monopolizes a market is illegal; nonetheless, such merger creates wealth and provides wider market access and cross-marketing opportunities to both merging firms.
Reduction in Bankruptcy Costs.
Undoubtedly, diversification minimizes enterprise failure. In case where a firm is failing and is forced to a possible liquidation or bankruptcy be creditors, assets are sold at a depressed value, and what channels down to stockholders are even less amusing since legal fees and selling costs are levied before disbursement of any fund to anyone. A merger may be a good solution for the creditors and the stockholders to absorb least amount of collateral damage.
Buying Below Replacement Costs Merger.
"Situations sometimes arise where it is cheaper to acquire an entire company than to acquire the assets the company owns." Due to reality of market, sometimes it is cost-effective to merge with a rival to acquire its assets than to attain those assets in any other way.
Determination of a Firm's Value
For a merger to be of value to Riordan Manufacturing, the company must analyze the value of the potential merger by quantifying the worth of acquired firm (Reference book Chapter 23 page 808). The value of acquired firm depends on number of elements such as: (1) book value; (2) appraisal value; (3) "chop-shop" or "break-up" value; (4) "free cash flow" or "going concern" value.
Book Value.
"Book value generally used in this context to refer to the book or historical cost value of the firm's net worth."
Appraisal Value.
Appraisal value is quantifying the worth of a company by an independent appraiser. This value is closely tied to the replacement cost of the assets.
"Chop-Shop" or "Break-Up" Value.
Dean Lebaron and Lawrence Speidell theorized that multiline companies that are undervalued can worth more if separated and sold individually.
"Free Cash Flow" or "Going Concern" Value.
The going concern value is estimated based on "incremental fee cash flows to the bidding firm as a result of the merger or acquisition."
Situational Analysis
Riordan Manufacturing has two derogatory circumstances: first, replacement of the Pontiac plant with a plant in Mexico; and second, excess cash. These circumstances create numerous opportunities and conflicts for the company; however, with proper planning, the company can capitalize and reach a net gain.
Pontiac Plant Closure
Based on the company's executive summary, the Pontiac plant is was shut down; however, to make matter more unfavorable is opening of the Mexican factory, which at the very minimal raises eyebrows over jobs going south. This negative publicity can have tremendous impact with the Defense Department, one of Riordan's clientele.
As a recourse to loosing clientele due to closure of Pontiac Plant and shifting operations south to the Mexican Factor, Riordan Manufacturing may choose to acquire or merge with a U.S. based company in the same industry that is suffering due to lack of access for capital or poor management disciplines and practices.
Excess Cash
Excess cash on hand can be problematic, because, it is display of management's inability to manage resources properly. Additionally, the company paid $943,274 in taxes, which is six and half times the amount of interest paid ($143,175) to secure over $3.5 million in credit. The company can afford to secure a $23 million worth of mergers to offset money paid to taxes.
Strengths, Weaknesses, Opportunities, and Threats Analysis
A definitive parallel acquisition by Riordan Manufacturing provides an example of the ongoing consolidations in the plastic manufacturing industry. Coming after closure of Pontiac plant and launch of the Mexican plant, this acquisition provides additional evidence of growing dichotomy between aggressive management and smart investment within Riordan Manufacturing and its parent company.
Strengths
The strengths that Riordan Manufacturing could be gaining from the acquisition would be total control of the company, acquiring stock for a minimal price and reducing overall debt. There are also other factors to include with regards to the acquisition. Riordan Manufacturing could block their major competitors with this acquisition and bring in a higher net project through the acquisition. Whether the acquired firm is left independent or dissolved within Riordan's operation, the takeover can be a win-win situation.
End-to-end solutions.
Acquisition of a parallel unit will greatly augment Riordan's plastic manufacturing portfolio and allows it to offer end-to-end manufacturing and warehousing solutions.
Dominance over market share.
Acquisition can bring in a positive cash flow, untapped lines of credit, and the customer base of the acquired firm. Acquisition also provides added support to Riordan's operations and enhances Riordan's market share.
Assets control.
Riordan can control more assets for less money through the merger than if it was to acquire those assets any other way.
Weaknesses
The weaknesses in business acquisitions mostly comes from risk's taken within the merged company or through external factors. As lucrative the deal may be, facing problems are much of reality that Riordan has to encounter. A serious opposition to the merger can be the management, labor unions, the existing shareholders of the target firm, vendors, and competition.
Management and labor unions.
Management and labor unions may oppose the merger because they perceive their elimination to be inevitable. The management may act to protect their position by taking the poison pill and making the merger unviable for Riordan. The labor unions with the same notion as the management may feel that their jobs can be cut and may picket the merger, file for an antitrust lawsuit, or walk off and make the plant inoperable. Any of aforementioned situations will create a red-light for any lending company seeking to finance the deal.
Shareholders.
Shareholders of the target firm can have two perceptions: (1) they are sitting on a pile of gold and there is no reason to negotiate for what they have over what they could have; and (2) even though the company they own is facing financial setbacks; however, their return can be better through a bankruptcy liquidation or reorganization of the business.
Vendors.
Because Riordan operates in China and Mexico vendors and supplier of the target firm can see a real threat as they may get replaced by Riordan's own supplier with cheaper raw material. Subsequently, they may force the target firm to liquidate assets to repay outstanding debts; and the financial stress makes the acquisition unfeasible to finance.
Competition.
Target firm's competition as well as Riordan's competition may feel the treat that this acquisition will create larger market domination for the merged companies. As a result, other competing companies may file antitrust lawsuits or help the target firm submerge from financial stress on terms of turning down acquisition opportunities.
Opportunities
Riordan Manufacturing has an enormous opportunity to acquire another company and merge. This will provide Riordan Manufacturing with the opportunity to expand their business practices and manufacturing. By merging, Riordan Manufacturing will be able to complete more projects and acquire more clients that in turn will produce more capital for the company.
Leadership emergence.
Riordan will be able to position itself as providing a leading plastic manufacturing and warehouse solutions that include medical industry, defense industry, consumer industries, as well as hardware and high-tech industries.
Self-reliance.
Rather than relying on partners or new joint ventures for robust production and delivery, Riordan will now expands its own and thus be able to determine future product directions. Expanded operations translate to more manufacturing hours, bigger warehousing capacities, and more effective logistics system.
Tax-minimization.
Riordan can take maximum advantage of tax-breaks and reinvest its tax payments toward owning another profitable operations. Riordan pays six and a half times the amount of interest on existing liabilities to taxes; this means that with the tax incentives Riordan will gain it can invest in six other profitable entities. Typically in mergers there are two tax advantages, but Riordan has three tax advantages: (1) Riordan can use its tax reduced incentives on new projects; (2) Riordan can take advantage of target firms operation less tax-credit; and (3) reevaluation of depreciated assets at the target firm.
Threats
Riordan Manufacturing has a very big threat that comes with this acquisition and with any business merger. There is a potential that the deal could fall through or that the profits from the company will not be enough to recover. Furthermore, Riordan will need to explain why, after shutting down Pontiac Plant it is acquiring another firm in the same industry. .
Competition hostility.
Riordan's competitors can be expected to create market fear, uncertainty, and doubt about how merger effects Riordan's product line and if Riordan is going to utilize an inferior product line in favor of profitability. It would not be unexpected for plastic manufacturing competitors to aggressively target the new merged organization in many ways, direct or indirect.
Government action.
Government may see this merger as unhealthy for the target firm's consumer market, thus blocking the merger and costing Riordan time and money.
Internal factors.
The most difficult factor for the merger comes from within the Riordan family of companies. First, Riordan Manufacturing's own board and management may oppose the merger. Second, the parent company may oppose the merger. Third, employees who are uncertain of their own status with Riordan may sabotage the deal be leaking out information, bringing on rival bidder to the table for the target firm, or even worst, create an atmosphere of mistrust among workers.
What are the by-products of rancidity?
rancidity food are very wasted food for our health because there oil and oil are faty
What are the Major interest groups in the world economy in globalization?
i think mulitinational companies and the nation of interest is a player in globalization
How much does 1 metric ton of D2 diesel cost?
The current pice for D2 diesel " high speed" is around the 650 USD, depending on the quantity ordered, this is an international price "CIF" normally. However if you are buying locally, that will be subject to local "business", state and federal taxes.
Did the industrial revolution ever really end or is it still going on today?
There is a parallel in the changes to people's work lives during the Industrial Revolution. Back then, it was a change from rural to manufacturing. In our times, perhaps it is called globalization. People's work lives are being challenged by the need to shift to new types of knowledge and skills both as manufacturing is being shifted to other countries and as part of the "gig" economy, where people patch together several jobs. There are also changes occurring as to how employers support people by linking them to health insurance, pensions and training.
Is there a list of Multinational companies in Nepal?
1. Converse
2. Lee Cooper
3. Reebok
4. Nike
5. Adidas
6. Gior Dano
7. Bossini
8. KFC
9. Pizza Hut
10. Hyatt
11. Radisson
12. CocaCola
13. Pepsi
14. Apple
15. etcetc
1. What role do cross-cultural communication play in multinational corporation management ? 2. What role do cooperative decision-making play in multinational corporation management ? 3. What role do collaborative problem-solving play in multinational corporation management ?
The five key dimensions of the broader business environment include?
The five key dimensions of the broader business environment include the Social, Economic, Technologic, Global and Competitive environments.
What are the main challenges of global financial management?
- The global financial situation, as of 2010, continues to struggle. The main issue is bank "write-downs," that is, the admission that a huge percentage of loans on the current books will not be repaid. All theories on recovery must take this specific challenge into account: how to restore creditworthiness to the financial sector, especially small and medium size businesses.
- Real Estate
- One major challenge of financial management is the continued deterioration of real estate markets globally. Falling prices and vacancies remain a problem, especially in the U.S., Spain and Western Europe as a whole. Foreclosures continue to rise in the western world, which is, in turn, harming global financial markets.
- Consumer Credit
- Consumer debt and insolvency in Western Europe and (especially) America is another huge challenge for financial management. Americans are saddled with low or non-existence savings, high debt and irrational consumption patterns. As unemployment grows, those millions living on razor-thin margins are certain to foreclose or default on debt.
- Corporate Credit
- High yield defaults, according to the International Monetary Fund (IMF) reached 12 percent in 2009. The main challenge here is to assist in the restructuring and refinancing of firms seeking to avoid default. In Europe, the real problem is that about 75 percent of all bank loans are from small and medium size business, which have a 50 percent higher chance of defaulting than big business.
- General Credit
- According to the IMF, a full 30 percent of American debt and 40 percent of Western European debt is expected to be written down, or slated as non-repayable. This includes both loans and securities. The main challenge is that banks must be able to support any kind of recovery. Keeping interest rates low is not a problem in the developed world so long as output is low. But these low rates drive competition in debt trading and refinancing, maintaining profits for banks at thin levels.
- Banks
- Global credit management must deal with banks that are barely limping along, and now have to face further heightening of costs from insurance premiums and new regulatory systems. The IMF holds that the real challenge is for banks to get out of risky markets and focus now on simple businesses and plans and spend money to increase risk management systems.
- Emerging Markets
- While Western banks can hold rates low without fear of inflation, this is not possible in the Third World (including Eastern Europe), according to the IMF. The financial, macro-level infrastructure is not as well developed. As of 2010, Western banks are pumping liquidity into emerging markets, hoping to stabilize them. Nevertheless, states like China and Taiwan are likely to maintain state control (rather than bank control) over their currencies. The real challenge in emerging markets, according to the IMF, is that loans are channeled only to the highest quality borrowers, leaving many enterprises without support.
Reference: eHow - Walter J. Johnson
