BSM 600 Chapter Notes - Chapter 17: Switching Barriers, Absolute Advantage, Product Differentiation
20 Feb 2017
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Busn chapter 17: the world marketplace- business without borders. More tech and fewer trade barriers = unprecedented international business opportunities. High population developing countries e. g. china, brazil, india = most potential because of 1. Cellphone - indicator of economic growth (higher penetration in china, indonesia) Access to factors of production: indonesia, china, ph attract investments because there are lots of technically skilled workers but who come cheap; ru and opec = oil; cd = timber. Reduced risk: lower dependence on one economy = decrease risk for mncs. Increase integration of national economies = increase impact reach. Inflow of new ideas from foreign markets: international trade = source of new ideas. Japan is ahead of the curve with phones. Presence in foreign = firsthand experience with budding trends. Lost jobs to countries with lower paid workers. Manufacturing jobs lowest paid workers = unemployment.
