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Block 2: competing in a global context - Coggle Diagram
Block 2: competing in a global context
Global trade
Advantages
Absolute advantage
relative comparative advantage
porters diamond model
structure of firm & rivalry
demand conditions
related industries
factor conditions
produce cheaper goods
stronger distribution channels
easier access to resources
advantageous tax rules
Threats
five forces model
threat of substitutes
buyers bargaining power
bargaining power of suppliers
threat of new entrants
industry competitors
Tariffs
to encourage domestic growth
retaliation over politics
developing new industry
discourage international trade
Global finances
Organisations
IMF
countries lend from as last resort
advice and strategies
World bank
invest in country infrastructure
eradicate poverty
finance flows
portfolio investment
foreign direct investment
financial account
capital account
current account
transfer pricing
two companies from same MNE trade together
save money on tax
arms length principle
introduce unitary taxation
Exchange rates
appreciation
imports cheaper
exports more expensive
depreciation
imports more expensive
exports cheaper
Cultures and their effects
convergence
adoption of international practises
Global culture
enabled by improvement in technology
divergence
operate within 'parent culture'
resistance to global trends
crossvergence
fluid in way it deals with situations
can use mix of convergence and divergence
wishes to influence its own context
Marketing
Branding
brand reputation
external evaluation
brand equity
money value of built reputation
brand content
communicate with customers
brand logo
make brand recognisable
packaging and labels
contribute to perceptions
ethical issues
customer protection
changes to culture
consumer waste
working conditions
entry into market
direct exporting
indirect exporting
direct investment
franchising
contract manufacturing