Concepts of International Business

Introduction International business operates in more than one country, region or continent. The location of international business is an important factor to the performance of any international business.Advertising We will write a custom essay sample on Concepts of International Business specifically for you for only $16.05 $11/page Learn More Punnett and Ricks proclaim that the location of any business depends on factors e.g. the raw materials location, the labor force, infrastructure, government laws and regulations, the target market and even the viability of expansion. Because of these factors, the location of a business must be scanned well as it will determine the costs of operation. The location of international business must also take into consideration the cultures as the beliefs and practices differ from region to region. International Business It is therefore categorical that the location of an international business has a heavy weight on the performance of the business. The first theory of international business location is the agglomeration theory (Hofstede, 99). The theory asserts that since companies and people are concentrated in the same places, the businesses should also be located in these regions. The location of companies should thus be placed where there are people. The theory capitalizes on the fact that people are important factors of production and therefore the success of the business depends on this production factors. The theory has several advantages. To begin with, businesses that are located where there are people will incur a small portion of their finances on the transportation of these goods. The target market will be closer to the company thereby making the transportation costs to be low. Another advantage of this theory is that the international business located where people are will be capable getting the required human factors of production. With these skills available for the company to utiliz e, the company will be in a position to improve the efficiency and therefore realize high returns. The high supply of labor will also enable the international business to get labor costs at low cost. This will further reduce the operation costs and thereby increase the business profits.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Moreover, the location of people in the same place may mean that the cultures and beliefs will be shared. In circumstances where there arte diverse cultures, the international business will be forced to take a long time in order to segment its market and customize its products. The marketing department will also have to customize the promotion message in order to attract the varied interest. Wirth the same cultures and operations, 5the business will be in apposition to reduce the costs of product development and promotion, this will thus lead to increased retur ns. Strength of this theory is that with the location of production factors at the same place, the need and risk of international variation of exchange rates will be eradicated. Adverse exchange rate fluctuation will make the business incur high business costs which will reduce the company’s income. Despite the several advantages of this theory, it also suffers from many drawbacks. First, the likelihood of people getting concentrated in one place is almost equal to zero. This is because of the fact that the population distribution does not depend on the company’s location but other factors. The location of people will not at any given point be at the same region as they exist different regions and economic regions around the world. Another drawback of this theory is that the government regulations will affect the location of any business. The government in most instances wants the company’s location to be at places away from the resident areas. This is because t he close location of business to the people may lead to the pollution of the environment thus affecting the human health. The business also has the corporate responsibility to look into the affairs of the community at large hence should not be ethically located. Again, it will be rare for all the production factors to be placed at one point. It will always be realized that some factors of production are nor available and must therefore be imported from other regions. Not any single region can be endowed with all the production factors. The second theory is that of orthodox. The theory is built on the short comings of the agglomeration theory (Buckley, 66). The theory explains that international businesses will not realize a constant return to scale in its production across the globe. Businesses have to be located depending on the growth prospects and opportunities.Advertising We will write a custom essay sample on Concepts of International Business specifically for you for only $16.05 $11/page Learn More This is because; the business should be focused to achieving increased returns. The theory therefore tends to discourage the location of the business in regions with declining return. It can therefore be said that this theory is aimed at maximizing the shareholders wealth which is in line with any profit making firm. This theory of location benefits from the following advantages. It takes into account growth prospects. As such the business will realize continued growth in its operation and increase the value of its returns. The business wills also retrench its production in regions with declining results. By doing so, the synergy will be greater and thereby the survival growth. The second advantage of this theory is the fact that in carefully scanned the environment before determining the location. By doing so, the business will be able to avoid losses that arise because of lack of proper feasibility study. This as well will mean that the production will take into account the need to customize its production and this will enhance the customers’ satisfaction a fact that is important in international business. Allen and Raynor (12), London, Ted, and Stuart, Hart, (25) that, orthodox theory is also genuine in that all factors of production and the demand will vary depending on the economic factors. The global economy experiences different economic conditions at different times and therefore the business location must take into account these factors. Failure for the business to consider the economic conditions will make is realize declining returns that may hinder the business going concern. The globe experiences different inflation level, tastes and preferences thereby making the location to be dependent and demand. This theory is also important as it considers that different regions are endowed with different factors of production. This therefore makes the location to depend on the factors location. Com panies will tend to locate their operations in regions that will economies on the costs of production. For example, companies will be located in areas that are close to the most important production factor that areas that are far away. The models of transportation will be used to calculate the cheapest means of production. Finally, the location theory also makes the operation efficiency to be enhanced. This is because the business will be located in areas which are likely to make the business grow. The location will look into the government regulations and other legal factors and this will make the business reduce the costs of paying the costs that are caused with the high regulation charges.Advertising Looking for essay on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More On the contrary, orthodox theory suffers from various drawbacks. To begin with, this location theory will; demand a lot of resources top conduct the feasibility and viability study, this will thus increase the start up cost and reducer the initial returns. The theory may also fail to address the long term objectives as the business returns may be viable for a while before they begin to decline, this means that the business location may have a short life span. Continued long term prospects may be difficult to determine. Since the theory only considers the returns to the business, it will not help solve the solution requirement for non profit international companies. Welch and Wilkinson (225) say that, â€Å"Some international business may not have the sole objective of achieving only economic objectives.† Other factor should thus be considered i.e. the expectation of the society and the need to provide services. The location of international businesses should therefore be care fully evaluated in order to make the businesses realize good returns. Other theories advocate factors like regionalization, integration and alliances in order to influence the business location. It will thus be important for international business managers to integrate several factors in the determination of business location. Because of the crucial role of culture in international; operation, it should be given the due gravity. Conclusion In conclusion, there is no single theory that can explain the determination of business location. A trade off must thus be made depending on the weights and contribution by each factor in its impact on the business operation. Work Cited Allen, Dwight. and Raynor, Michael. Preparing for a New Global Business Environment: Divided and Disorderly or Integrated and Harmonious? Journal of Business Strategy 25, 2004. Print. Buckley, Peter. What is International Business? Basingstoke, Hampshire; New York, NY: Palgrave Macmillan, 2005. Print.. Hofstede, Kr aut. Culture’s Consequences: Individual Differences in Work Related Values. Beverly Hills, CA: Sage Publications, 1980. Print. London, Ted and Stuart, Hart. Reinventing Strategies for Emerging Markets: Beyond the Transnational Model. Journal of International Business Studies 35, no. 5 2004. Print. Punnett, Ricks, D. International Business. Cambridge, MA: Blackwell Publishers, 1997. Print. Welch, Catherine and Wilkinson, Ian. The Political Embeddedness of International Business Networks; International Marketing Review, 2004. Print. 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Hitler Essays - Adolf Hitler, Chancellors Of Germany, Hitler Family

Hitler Essays - Adolf Hitler, Chancellors Of Germany, Hitler Family Hitler Hitler, Adolf (1889-1945) Early Years Hitler was born in Braunau am Inn, Austria, the son of a minor customs official and a peasant girl. A poor student, he never completed high school. He applied for admission to the Academy of Fine Arts in Vienna twice but was rejected for lack of talent. Staying in Vienna until 1913, he lived first on an orphan's pension, later on small earnings from pictures he drew. He read voraciously, developing anti-Jewish and antidemocratic convictions, an admiration for the outstanding individual, and a contempt for the masses. In World War I (1914-1918), Hitler, by then in Munich, volunteered for service in the Bavarian army. He proved a dedicated, courageous soldier, but was never promoted beyond private first class because his superiors thought him lacking in leadership qualities. After Germany's defeat in 1918 he returned to Munich, remaining in the army until 1920. His commander made him an education officer, with the mandate to immunize his charges against pacifist and democratic ideas. In September 1919 he joined the nationalist German Workers' Party, and in April 1920 he went to work full time for the party, now renamed the National Socialist German Workers' (Nazi) Party. In 1921 he was elected party chairman (Fhrer) with dictatorial powers. Rise to Power Hitler spread his gospel of racial hatred and contempt for democracy. He organized meetings, and terrorized political foes with his personal bodyguard force, the Sturmabteilung (SA, or Storm Troopers). He soon became a key figure in Bavarian politics, aided by high officials and businessmen. In November 1923, a time of political and economic chaos, he led an uprising (Putsch) in Munich against the postwar Weimar Republic, proclaiming himself chancellor of a new authoritarian regime. Without military support, however, the Putsch collapsed. As leader of the plot, Hitler was sentenced to five years' imprisonment and served nine months, which he spent dictating his autobiography Mein Kampf (My Struggle). The failure of the uprising taught Hitler that the Nazi Party must use legal means to assume power. Released as a result of a general amnesty in December 1924, he rebuilt his party without interference from those whose government he had tried to overthrow. When the Great Depression struck in 1929, he explained it as a Jewish-Communist plot, an explanation accepted by many Germans. Promising a strong Germany, jobs, and national glory, he attracted millions of voters. Nazi representation in the Reichstag (parliament) rose from 12 seats in 1928 to 107 in 1930. During the following two years the party kept expanding, benefiting from growing unemployment, fear of Communism, Hitler's self-certainty, and the diffidence of his political rivals. Nevertheless, when Hitler was appointed chancellor in January 1933, he was expected to be an easily controlled tool of big business. Germany's Dictator Once in power, however, Hitler quickly established himself as a dictator. A subservient legislature passed the Enabling Act that permitted Hitler's government to make laws without the legislature. The act effectively made the legislature powerless. Hitler used the act to Nazify the bureaucracy and the judiciary, replace all labor unions with one Nazi-controlled German Labor Front, and ban all political parties except his own. The economy, the media, and all cultural activities were brought under Nazi authority by making an individual's livelihood dependent on his or her political loyalty. Thousands of anti-Nazis were taken to concentration camps and all signs of dissent suppressed. Hitler relied on his secret police, the Gestapo, and on jails and camps to intimidate his opponents, but many Germans supported him enthusiastically. His armament drive wiped out unemployment, an ambitious recreational program attracted workers and employees, and his foreign policy successes impressed the nation. He thus managed to build support among the German people; he needed their support to establish German rule over Europe and other parts of the world. Discrediting the churches with charges of corruption and immorality, he imposed his own brutal moral code. He derided the concept of human equality and claimed racial superiority for the Aryans, of which he said the Germans were the highest form. As the master race, they were told, they had the right to dominate all nations they subjected. The increasingly ruthless persecution of the Jews was to inure the Germans to this task. Hitler successfully appealed to a Germany that was humiliated by defeat in World War I and the Treaty of Versailles of 1919. Many Germans, and even other Europeans, believed that the terms of the treaty were too harsh, and Hitler was successful in defying some of them. His efforts to rearm Germany in 1935 met with little protest from other European

The State of Accounting Convergence Among Large Public Companies Thesis Proposal

The State of Accounting Convergence Among Large Public Companies - Thesis Proposal Example â€Å"The international standard-setting process began several decades ago as an effort by industrialized nations to create standards smaller nations unable to establish their own accounting standards. The regulators, investors, large companies and auditing firms began to realize the importance of having common standards in all areas of the financial reporting chain† (International Financial Reporting Standards (IFRS): An AICPA Backgrounder n.d., p. 2). The union among the countries includes the European Nations (Larson & Street 2004) and China (Qu & Zhang n.d). Many of the large public sector companies all over the world have been against the adoption of the new standard for a number of reasons. Till today, the precise reasons for the opposition and objection for the new accounting standard convergence are not clearly understood. The main idea of the dissertation is a theoretical explanation of the weighted resistant factors. The above research questions need to be addressed through an investigation. The researcher will conduct research by means of literature review on accounting convergence. The literature will comprise of researches on the delay in accounting convergence. Hail, Leuz, and Wysocki (2009) identified transition costs as a major factor in the reluctance of U.S companies to move towards convergence. The literature will also include official explanations of what convergence is and why it is being implemented (AICPA, 2011 & 2010). No hypotheses are associated with the research question, as an exploratory Delphi method will be used to generate the factorized and weighted list. The Delphi method has been frequently used with experts in accounting and financial analysis, as a means of generating factorized lists of adopted reasons. (Alwert, Bornemann & Will 2009). The dissertation will be valuable for committees that are working towards promoting accounting convergence as