Example Of International Business Essay

1. Hyundai started its business in the year 1967 by Chung Ju Yung. After its inception company started growing at a good pace and started its operations in various countries. At initial stage Hyundai faced some challenges when company entered in Canada. Hyundai had not succeeded in Canada but that failure was a big lesson for Hyundai. The company learned various things from that failure and Hyundai utilized the same in the future. All the experience turned out to be advantageous for the company that it was having over its competitors.
Comparative and competitive advantages played a major role in Hyundai success. The major advantages company was having over its competitors in global market are: knowledgeable and cheap labor, easy availability of the labor and technically sound manpower. The easily accessible cheap labor helped in reducing the cost and technically sound manpower helped in driving innovation in design, looks, quality and production. South Korea receives good foreign investment and country’s export is also high. Foreign investment used by the companies in Research and Development activities and innovation in products.
If we take example of Turkey, India and China, we can see that company differentiate its product by offering lower price and high quality. Since the brand was new to the market and many competitors were also existed, it was very important for Hyundai to build a strong image in the mind of customer. To do so Hyundai offered ten year warranty on its products while keeping pricing very competitive. Ten year warrantee changed the attitude of the population towards product and they started trusting the brand. The demand of the product was very huge and product was very successful. Later on company faced challenges because of poor distribution network.
2. United Kingdom enjoys various comparative and competitive advantages. United Kingdom is leader in providing best quality education. United Kingdom is having technically sound and
very innovative manpower. The labor available in the country is not cheap but technology makes the production cheaper. Technology driven products can be produced at cheaper rate than other courtiers. The United Kingdom is having an upper edge when it comes to product quality, reliability, design, performance, look and feel of the product.
1. Dominican Republic – Central American Free Trade Agreement was executed in 2005 to remove all trade barriers between United States of America and six Latin American Nations. Honduras is a nation which got benefited by Dominican Republic – Central American Free Trade Agreement. Honduras is a poor country and majority of the country’s population approx 30 percent earned their livelihood from textile industry. Before DR- CAFTA the textile and apparel business was going to China and other Asian countries. Honduras government is also promoting textile industry by removing all type taxes. Implementation of DR – CAFTA has found very beneficial for the country as well as firms. Before implementation of DR – CAFTA All the business was going to China instead of cheap labor and very less shipping time for consignment.
The economy of various Latin American countries depends on America. In the absence of free trade these countries are struggling for economic growth. A major part of their population is unemployed. Free Trade Area of Americas will be a big help to these countries. It will also give benefit to America by protecting the nation from Chinese products. So the FTAA should be extended through out America.