Business Development: Final Project on International Market Analysis

This final project analyzes international market studies through two case studies. The first case study examines the rise of the Bangladesh textile industry, exploring the impact of free trade, cost advantages, and the industry's security from foreign competition. It also addresses the challenges related to infrastructure and modernization. The second case study focuses on JCB's strategic alliance in India, detailing the rationale behind the joint venture with Escorts, the benefits of this entry mode, and the advantages of gaining full control in 2002. The project also discusses the drawbacks of the joint venture and the implications of full control, providing a comprehensive overview of international business strategies and market dynamics.

Final project
TABLE OF CONTENT

INTRODUCTION.................................................................................................................................2
CASE STUDY 2...................................................................................................................................3
The rise of Bangladesh Textile trade.................................................................................................3
Question 1.............................................................................................................................................3
Question 2.........................................................................................................................................4
CASE STUDY 4...................................................................................................................................5
JCB in India: A Journey of Strategic Alliance...................................................................................5
QUESTION 1....................................................................................................................................5
QUESTION 2....................................................................................................................................6
CONCLUSION.....................................................................................................................................8
REFRECNES........................................................................................................................................8
INTRODUCTION
The international market studies are widely important for analysing various working
goals, operational advancement within efficiency levels as compared to global business
scenario where companies management has to focus on various levels such economic rates,

global expansion investments parameters. Report in first case study explains Bangladesh
textile industry metrics , what factors have lead to growth and cost effective productivity for
economy along with future challenges of competitive world textile industry. Another case
study also factored the case study of how JCB company entered onto Indian market by
venture with Escorts where there has been wide increase within consumers market share onto
which new working efficiency is widely stressed on (Beugelsdijk, Ambos and Nell, 2020)
CASE STUDY 2
The rise of Bangladesh Textile trade
Question 1
The free trade regime in textile industry has been one of the best parameter where it
can be understood that there has been continuous rise coming in within country businesses
for stronger fundamental operational advancement.
 The free trade policies have opened up various barriers within countries international
trade policies which gave rise in exports within international market presence within
Bangladesh textile industry. The free trade regime business decision was taken by
country by analysing the prediction of sharp jump in unemployment rates, higher
decline in country balance of payments accounts and negative impact on economic
growth.
 The free rated regime within Bangladesh exports of textiles continued to grow within
world paradigms even as the rest of world witnessed an economic crisis. Bangladesh
has an advantage within production in textile industry within world’s low cost
producers and which has also been allowing country to built new exploration within
world markets factors for new synergy of functional goals (Cherunilam, 2020).
 Bangladesh exports if textiles rose to 10.7$ billion in 2008 making its widely
successful within international textile trade business avenues. Theory of comparative
cost of international trade can be understood with the fact that production of goods
for which it has got relative or comparative advantage where there is production of
numerous goods with cost effective use of technology where promising growth can
be expected due to low cost raw materials where Bangladesh has been actively using
this theory.

 Bnagladesh is one of the top most ranked export powerhouse within world textile
industry where low cost employee wage rates are about 50$-60$ a month which is
profoundly less than half of minimum wage un china where it has created active
source if employment for some 3 million people. Another factor which has created
vibrant network of supporting rise in textile industries manufacturing can be
understood with the fact that supply inputs to its garment manufacturers are low in
measure of inputs price range. This widely enables to save manufacturers transport
and storage costs, import duties and long lead (Chi, Trigeorgis and Tsekrekos, 2019).
This has been actively giving boost to productivity of Bangladesh garment
manufacturers, giving them cost advantage factor which also has been positively impacting
business profits to wider scale for Bangladesh textile industry. The low garment
manufacturing costs along with low wage rates , relative new functional synergy of cost
effective exporting rates has also been giving strong boom to large scale production profits.
Question 2
The Bangladesh textile industry is secure from foreign competition where it
can be understood that western countries such as china, where many importers have grown
too cautious about becoming too dependent upon china for imports of specific goods with
the fear that if there has been any source of disruption , this may widely impact their scale of
supplies within business.
 Bangladesh on other hand has been benefiting from western importers to diversify
their supply sources where there is balanced low wage rates and higher demands
within textile industry trading which has given wide boom for supplies in China.
Bangladesh textile industry is strongly secure from foreign industry where it can be
analysed that there has been rapid rise in diversification factors within Textile
companies business with the increase in trend by western importers along with
effective wage rate system which has been one of the major factor for wider
profitable working avenues (Chow and Schoenbaum, 2020).
 The domestic market within production requires very less resources at a cost effective
rate and also with favourable climate conditions textile industry has been vividly
growing onto wider paradigms for stronger business profitability and exporting
within international market rose rapidly. The factors which ultimately lead to decline
within Bangladesh textile industry are the various power shortage disruptions within

production factor and less modernisation within infrastructure where roads and ports
are also inferior for covering wider demands of innovation.
 Bangladesh industry has to renovate and invest for bringing in new efficient
modernised machines for production of textiles , where global industry is widely
growing with competition and for factoring growth with innovation among business
scenario. The raising modernisation within world textile industry has negatively
impacting work efficiency at Bangladesh old production techniques where it can be
understood as major factor impacting in decline (Hennart, 2019).
Domestic market of Bangladesh is also lacking skilled workers where there are less
advanced skill, working parameters of innovation and for programming ken synergy of
growth within market competitive strengths factors.
CASE STUDY 4
JCB in India: A Journey of Strategic Alliance
QUESTION 1
JCB chose to enter India with Joint venture with Escorts where it held 60 percent in
the venture and JCB 40 percent which was highly one of the best business decision where
Indian government regulations required foreign investors to create joint ventures with local
companies for establishment within Indian business avenues.
JCB company being one of the widely known foreign brand with best quality factors
found the venture business decision highly fruitful for expansion within Indian market
which was booming within constructional industries.
 The time was widely fruitful and construction market was ripe for growth and held
wide business growth opportunities where it can be understood that global
competition has been widely increasing onto new scenes of productivity where it
was highly profitable for further investment. JCB company realised that with rise in
population factors within India there was also business growth opportunity for
comapny to enter into partnership and also for factoring new technology growth with
venture along Escorts which is already an established company. Venture with Escorts
made JCB entrance widely effective and transforming within business decisions
(Kahiya, 2020).

 The benefits of venture with Escorts as compared to another entry mode can be
understood with the fact that there are various factors such as wider development,
innovation rapid growth and analysis of best techniques which gave rise in business
venues. Joint venture is one of the best international business expansion strategy
where productive growth has been analysed as consumers are also profoundly
comfortable with the already established brand in country where wide percentage
sales are figured on . Other modes of entries are not so much reliable source for
functioning of business amalgamation, which reduces growth objective and also
consumers market share is not rapidly grown which is also one of the major factor for
higher stronger success goals.
 The limited ability to expand is one of the major factor which is one of the potential
disadvantage for venture with escorts where it can be analysed that Indian economy
has been also slowing up within progression factor for companies who are coming in
with venture. JCB was hesitant and not able to work with wider efficiency of
operations while working a mong consumers commercial market share demand where
it did not posses majority stake and also therefore lacked vital control for expansion
and functional modernisation (Peterson, Arregle and Martin,2020). JCB faced other
drawbacks of leaking out strong technology know how, with the joint venture along
escorts which was one of the largest manaufacturers of tractors in London and might
become a direct competitor of JCB within the future.
 This factors limited growth functional expansion onto wider scales where there has
been limited control onto functional efficiency, innovation expansion and growth
factors of productivity where the joint venture was lacking efficiency onto wider
scale. It can be also analysed that JCB as joint venture has to function on various
working functional roles to strengthen its scope with new working opportunities such
as new determinants where there are wider business opportunities for which legal
aspects within economy of india encompasses various barriers for international
business to functionally enhance its objectives.
The venture also has to productively face various new working determinants where there are
wide business opportunities where stronger synergy of growth is less when entering within
joint venture with Escort which may also less productivity widely onto new levels (Shams,
Vrontis and Czinkota, 2020).

QUESTION 2
The benefits of gaining full control of the Indian joint venture in 2002 can be
understood with the fact that Indian population was going through high booming phase where
there was rapid increase in commercial projects development also where JCB was able to
develop stronger position with its best quality factors. By purchasing 20 percent of its partner
equity for giving it to JCB majority control metrics, where company logically responded to
further relaxation of government regulations on Foreign investments to purchase all Escorts
remaining equity , transforming the joint venture into wholly owned subsidiary.
 JCB also invested in wholly owned Indian market fundamentally with its operational
independence where it was gaining wider profits strongly by investing further within
this line of commercial Indian market. The JCB product line has been expanded
from 120 machines to over 250 within year of 2001 where it had 47 dealers and some
275 outlets around India. It started its wide reach of sales with around 1. 8 $ and
earnings of around record 187 million $, and company moved around up to 4 number
in the industry with almost 10 percent of global market share.
 JCB venture has been strongly fruitful decision for entering into venture with Escort
within the years when India was entering into new working exposure and
welcoming international project investments fundamentally onto wider scales. The
benefits of gaining full control within Indian joint venture in 2002 can be understood
as one of the best strategic business decision which JCB took for commercial
expansion within new ventures and for entering widely within Indian market.
Drawbacks
 Drawbacks of venture full control within business where development has been
widely developed as per new functional efficiency demanded can be analysed with
the fact that overall cost of financing is expensive, which may widely impact
company functioning onto larger levels. There will be higher rise in formal reporting
structure for management which can be understood with the fact that board of
directors have to work on with more formal advancement within functional efficiency
onto which higher focus shall be inbuilt (Wettstein, Giuliani and Stahl, 2019)
 The drawbacks also potentially includes new functional demands working within
various business avenues where there are various paradigms onto which new
technical advancement shall be built on among working experience. JCB may also

have strategically invest further within business scenario by technically analysing new
control measures and working efficiency levels when composed with shares of its
own. There is new functional opportunity for business to enter into wider customer
market segments with strategically advancement, which also further bring on new
working force and scope for entering into international market.
CONCLUSION
The report can be concluded with analysis that there are various parameters of work
advancement shown within the cases studies where international business functioning are
analysed onto wider functional levels, with economy parameters and external factors being
the major component impacting working synergy and widely impacting new level of synergy
within companies. The report also concludes how various factors such as venture
development may impact stronger working decisions within company functional levels and
for developing stronger synergy of continuous efficiency levels among new relative goals
within international business (Wieland, Bals and Handfield, 2020).

REFRECNES
Books and journals
Beugelsdijk, S., Ambos, B. and Nell, P.C., 2020. Conceptualizing and measuring distance in
international business research: Recurring questions and best practice
guidelines. In Research Methods in International Business (pp. 449-498).
Palgrave Macmillan, Cham.
Cherunilam, F., 2020. International business. PHI Learning Pvt. Ltd..
Chi, T., Trigeorgis, L.G. and Tsekrekos, A.E., 2019. Real options theory in international
business. Journal of International Business Studies, 50(4), pp.525-553.
Chow, D.C. and Schoenbaum, T.J., 2020. International business transactions: problems,
cases, and materials. Wolters Kluwer Law & Business.
Hennart, J.F., 2019. Digitalized service multinationals and international business
theory. Journal of International Business Studies, 50(8), pp.1388-1400.
Kahiya, E.T., 2020. Context in international business: Entrepreneurial internationalization
from a distant small open economy. International Business Review, 29(1),
p.101621.
Peterson, M.F., Arregle, J.L. and Martin, X., 2020. Multilevel models in international
business research. In Research Methods in International Business (pp. 417-
432). Palgrave Macmillan, Cham.
Shams, R., Vrontis, D., and Czinkota, M.R., 2020. Strategic agility in international business:
A conceptual framework for “agile” multinationals. Journal of International
Management, p.100737.
Wettstein, F., Giuliani, E., and Stahl, G.K., 2019. International business and human rights: A
research agenda. Journal of World Business, 54(1), pp.54-65.
Wieland, A., Bals, L., and Handfield, R.B., 2020. Overcoming blind spots in global sourcing
research: Exploiting the cross-sections between supply chain management and
international business. Journal of International Management, 26(1), p.100709.