Global Management Sample Assignment

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Running head: GLOBAL MANAGEMENT
GLOBAL MANAGEMENT
Name of the Student
Name of the University
Author Notes
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1GLOBAL MANAGEMENT
Introduction
The chosen company for this project is Nintendo which is one of the largest multinational
consumer electronics and gaming company which is headquartered at Kyoto. It is considered to
be one of the largest video game companies and is known for creating some of the most popular
and top selling franchises for video games like Mario, The Legend of Zelda and Pokémon. The
following project will assess the various questions related to the multinational video gaming
company in relation to the countries United States, United Kingdom and Japan and will overview
the process of how the countries trade and how products are outsourced.
Identify three major countries with which your chosen company operates. Preferably, the
three countries are in different continents.
Nintendo operates in more than 30 countries worldwide; however the three biggest
operating centers are in United States, United Kingdom and Japan where the headquarters is
located (Brichetto et al., 2013). The company plans to expand over to more countries in the
future and they are already one of the biggest gaming company in the world.
Are these three countries members of the IMF, the World Bank, and WTO?
All three of the countries are members of the IMF, the World Bank and WTO. Both
United States and United Kingdom became a member of IMF and the World Bank on December
27, 1945, whereas Japan became an IMF and the World Bank member on August 13, 1952. On
the other hand, United States, United Kingdom and Japan became a member of the WTO on 1
January 1995.
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2GLOBAL MANAGEMENT
Do you believe that these three countries actively follow guidelines of these three major
international institutions?
These three countries very actively follow the guidelines of the IMF, the World Bank and
WTO (Banga, 2013). These three countries became the members of the major international
institutions when these institutions were formed and since then they are very active members.
Compare the institutional structure of these three countries to determine if they promote
globalization, i.e., (a) are their political institutions transparent and (b) do they have a
functioning judiciary system?
The three countries mentioned above do promote globalization. However unlike United
States and United Kingdom, Japan is more conservative towards their society, they are very
conscious about their hierarchical position. Their political institutions are transparent and are
driven through competition, achievement and success. United Kingdom and United States on the
other hand believes that inequalities amongst people should be diminished (Holden & Jacobsen,
2014).
All of the three countries have functioning judiciary systems. Japan has five types of has
passes decisions: the Supreme Court, High Court, District Court, Family Court and Summary
court. The judiciary system of United States is similar to that of Japan. United Kingdom has
more varieties like The Magistrates, Coroners, Ecclesiastical and Crown Court.
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3GLOBAL MANAGEMENT
Do you believe that the three countries under consideration practice policies that promote
globalization? For example, what are those countries’ policies toward (a) governance, (b)
competitive markets, (c) property rights, and (d) corruption?
All the three countries mentioned above practice policies that promote globalization.
Governance is a major factor when considering foreign policy challenges and it is also one of the
most difficult ones. If it is not maintained properly it can lead to corruption and lack of economic
development. When talking about the factor of competitive markets, all the three countries
mentioned are in top of the most competitive markets list in the world. Property rights are
recognized and enforced in all the mentioned countries (Scaglioni-Solano & Aragón-Vargas,
2014). Property can be rented or leashed however sub-lease is not legalized with the consent of
the owner. It is debatable whether globalization has actually made corruption even worse. As
research shows that some businesses in developing economics have furthered.
Determine whether your company is a producer of goods or services. What are the major
products and/ or services provided by your company? Are those outputs sold only
domestically or are they also exported?
Nintendo is a producer of goods. However in the beginning, they tried many businesses
like cab or hotel services. However after the 1980’s the organization turned into one of the giants
of video gaming and changed the gaming industry all over the world. They started as a playing
card company and from the mid 70s they started producing their own hardware and their console
games in 64 bit color. Ever since then, they made developed various consoles based on their
games and after that they started producing for arcades (Condry, 2013). The success that
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4GLOBAL MANAGEMENT
followed gave Nintendo a huge boost which in turn led to create iconic franchises like Mario and
Donkey Kong. The company saw the major success that their games created and from the 1980s
they started outsourcing their products internationally and they are widely acclaimed throughout
the world (Holmes et al., 2013).
Do these products and services face tariff or non-tariff barriers in the target export
markets? What are the tariff rates or non-tariff barriers imposed on these items?
A tariff can be considered a type of tax which is implemented on a product. These
products are exported outside the country and thus sold at an expensive rate to consumers than its
original price domestically. In case of Nintendo, the tariff impacts on the cost of consoles and its
hardware because they are manufactured in Japan mostly. Having said that, the Government sets
the ground rules because the demand of these products worldwide and they are not easily
available in some countries (Egger et al., 2015).
Identify regional trading blocs with which your chosen company operates as well as the
benefits that your company gains because it is part of those trading blocs.
In order to pay for the process of importing products to a different country, all the three
countries mentioned above, export a variety of goods and services to different countries. Japan
exports its products to United States and United Kingdom and many more countries. It is because
of the trade bloc system in these countries; this process is possible and is carried out effectively.
Nintendo carries out trade through other countries
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5GLOBAL MANAGEMENT
Would your company be better off under a system of multilateral trade liberalization like
the WTO, or with bilateral or regional trading blocs?
Nintendo would be better off with a trade liberalization like WTO because it helps trade
throughout the world flow smoothly and it provided their members with fair methods to settle
trade disputes so they do not have to resort to any harmful measures like war (Dutt, Mihov &
Van Zandt, 2013). On the other hand, it does not mean that trade blocs are not helpful. They exist
within a geographical location which normally reduces any kind of tariff barriers which are
exported and thus it is better if considered by economical means (Khandelwal, Schott & Wei,
2013).
If you were visiting a foreign country to negotiate a transaction on behalf of this company,
what cultural knowledge would you need to gain before the visit? How and from where
would you get the information?
First of all it is important to know about the culture of the foreign country. For a video
gaming company like Nintendo, the international market has a huge preference towards quality
and its brand. The language is also a factor when talking about a negotiation between a foreign
country and any company. Ethics and value also makes an impact towards international business.
It is important to know all the details before making an offer, such as status, region, ethnicity and
religion (Tang, Snowden, & Höök, 2013).
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6GLOBAL MANAGEMENT
References
Banga, R. (2013). Measuring value in global value chains. Background paper RVC-8. Geneva:
UNCTAD.
Brichetto, G., Spallarossa, P., de Carvalho, M. L. L., & Battaglia, M. A. (2013). The effect of
Nintendo® Wii® on balance in people with multiple sclerosis: a pilot randomized control
study. Multiple Sclerosis Journal, 19(9), 1219-1221.
Condry, I. (2013). Japanese hip-hop and the globalization of popular culture. Introductory
Readings in Anthropology, 241.
Dutt, P., Mihov, I., & Van Zandt, T. (2013). The effect of WTO on the extensive and the
intensive margins of trade. Journal of international Economics, 91(2), 204-219.
Egger, P., Francois, J., Manchin, M., & Nelson, D. (2015). Non-tariff barriers, integration and
the transatlantic economy. Economic Policy, 30(83), 539-584.
Holden, C. W., & Jacobsen, S. (2014). Liquidity measurement problems in fast, competitive
markets: Expensive and cheap solutions. The Journal of Finance, 69(4), 1747-1785.
Holmes, J. D., Jenkins, M. E., Johnson, A. M., Hunt, M. A., & Clark, R. A. (2013). Validity of
the Nintendo Wii® balance board for the assessment of standing balance in Parkinson’s
disease. Clinical Rehabilitation, 27(4), 361-366.
Khandelwal, A. K., Schott, P. K., & Wei, S. J. (2013). Trade liberalization and embedded
institutional reform: evidence from Chinese exporters. American Economic Review,
103(6), 2169-95.
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7GLOBAL MANAGEMENT
Scaglioni-Solano, P., & Aragón-Vargas, L. F. (2014). Validity and reliability of the Nintendo
Wii Balance Board to assess standing balance and sensory integration in highly
functional older adults. International Journal of Rehabilitation Research, 37(2), 138-143.
Tang, X., Snowden, S., & Höök, M. (2013). Analysis of energy embodied in the international
trade of UK. Energy Policy, 57, 418-428.
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