International Business Desiring

Running head: QUESTIONS 0
BUSINESS ENVIRONMENT AND STRATEGIC MANAGEMENT
MARCH 31, 2020
STUDENT DETAILS

QUESTIONS 1
Answer 1:
Thomas Friedman stated in his book ‘The word is flat’ that there is great impact of globalization
in the twenty-first century. Thomas considers the world as a level playing area in relation to the
trade, where all the competitors have similar opportunities. It is realised by him that the
economic concepts have been changed because of the globalisation. However, HBS professor
Pankaj Ghemawat argued that world is partly globalized or semi globalized.
Further, the super markets are self-service shops rendering wider range of foodstuff, beverage,
and household product. It can see that they are organized in different sections. It can see that that
there are various industries like fashion sector, are organised globally. However, super markets
are organised at central level. They compare the prices mechanically with main competitors at
national level instead global level.
Answer 2:
The porter’ diamond model is very useful model in taking business decisions. As per this, the
idea of IKEA is to render reasonable solution for best living. In addition, the mission statement
of IKEA is to state all can afford lower price furniture with stylish functional designing that. The
porter’ diamond model is also helpful in case of Sweden. It can also see that Swedish diamond
has strong influence on the effectiveness of Swedish. This concept of comparative advantages
were established for dealing products in place of services. Further, in case of USA, it is
economic strategic model. USA uses porter’ diamond model to assess the external competitive
atmosphere. It can see that this model establishes most competitive advantages for some
industries. For example, South Korea is home base for consumer’s electronics.

QUESTIONS 2
Answer 3:
It can see that there are different types of strategic alliances. The joint venture is key part
of alliance. The joint venture as well as strategic alliance have become the main measure of the
corporate strategy and international strategy. In addition, Joint venture along with strategic
alliance forces the organisation for sharing revenue as well as profit, however it also shares risk
of losses and let-down. The cooperative strategy allows smaller entities to join jointly to compete
against the sector giant. The different size companies can have advantages from combining.
In addition, the international (cross-border) alliances are partnership of the entities from different
nations. By setting the partnership, entities struggle for the joint competitive advantages. The
international strategic alliances are normally developed while entity desires to edge in the related
businesses or new geographic marketplace, specifically one wherever the governments prohibit
import for securing local industry.
Answer 4:
Tariff as well as import quota is made to discourage the import, as well as export subsidy is
created to motivate export. There are some countries that perform various actions to discourage
import as well as encourage export. These five nations are China, EU, America, Germany, and
Japan. From the websites of company, it is found that these five countries put focus on enhancing
commercial relationship with different nations. They focus on the geography-specific matrix as
well as products-specific matrix to enhance the share of marketplaces. Additionally, they also
focus on the global trading activities to increase export and reduce import.
Answer 5: