Is Kicking Out Illegal Immigrants Worth Looking Like Racists?

The U.K. government has recently declared that it would broaden its unpopular anti-illegal immigration campaign. The campaign has been aggressive in its methods that include putting ads on vans driving around London that cite “In the U.K. illegally? Go home or face arrest,” or sending mobile phone text messages or email to suspected illegal immigrants. Although the government received lots of criticism for the offensiveness of its campaign, the government will not stop taking its aggressive stance, as it believes illegal immigration has exacerbated the recent recession by taking away jobs for its innocent citizens. Prime Minister David Cameron’s Conservative party said its objective is to reduce annual net immigration to the tens of thousands from more than 200,000 in recent years.

Although the government’s intention behind the campaign is understandable, it is doubtful that its aggressive stance against illegal immigrants will be highly beneficial. Even if the campaign succeeds, there will be a negative consequence against the nation. Generally speaking, many of the illegal immigrants in the U.K. are blue-collar workers; manufacturing industries have been benefited with them as their labors cost cheaper. Therefore, if working illegal immigrants are caught and sent back to their home countries, the companies in such industries will take a hit in its business operations due to their labor losses and costs involving replacing them. Similarly, the home countries of the illegal immigrants will be indirectly affected by the campaign as well. In fact, the very unwanted illegal immigrants in the U.K. had been the benefactors to their economy in a sense that they acquired and sent foreign currencies to their families in home. Now, however, the immigrants who got kicked out from the U.K. will not only be able to bring them free money but also turn into their own problems that worsen the economy by increasing competitions in job markets.

This text was written and presented by Mr. Kyoung Ho Lee, Student at the McDonough School of Business of Georgetown University in the course on International Business (STRT-261-01) on October 21th, 2013. You can contact the author here.

 

What Drives Globalization? Part 4/4

Globalization is driven by four factors:

  1. Cost
  2. Market
  3. Environment
  4. Competition

Competition:

To remain competitive, global rivals have to intensify their marketing everywhere by attempting to sustain advantages that, if weakened, could make them susceptible to market share erosion worldwide. Competitive companies introduce, upgrade, and distribute new products faster than ever before. A company that does not remain ahead of the competition risks seeing its carefully researched ideas picked off by other global players.

Leading companies drive the globalization process. There is no structural reason why soft drinks should be at a more advanced stage of globalization than beer and spirits, except for the opportunistic behavior of Coca-Cola. Similarly, German beauty products maker Nivea is driving its business in a global direction by creating global brands, a global demand for those brands, and a global supply chain that helps the company meet those demands.

Nonetheless, the four global drivers have affected countries and industrial sectors differently. While some industries, including paper and soft drinks, are truly globally contested, some others, such as government procurement, are still closed. Commodities and manufactured goods are already in a globalized state, while many consumer goods are accelerating toward more globalization. Similarly, the leading trading nations display far more openness than low-income countries and that openness is advancing the positive state of globalization in general.

This is an excerpt from Dr. Czinkota’s book Global Business: Positioning Ventures Ahead, co-authored by Dr. Ilkka Ronkainen.

Michael R Czinkota and Ilkka A Ronkainen, Global Business: Positioning Ventures Ahead (New York: Routledge, 2011), pg. 92.

 

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What Drives Globalization? Part 3/4

Globalization is driven by four factors:

  1. Cost
  2. Market
  3. Environment
  4. Competition

Environment:

Increasing consumer wealth and mobility, rapid information transfer across borders, publicity about the benefits of globalization, and technological revolutions continue to accelerate demands for global products and services. Newly emerging markets are benefiting from advanced communications by leaping over economic development stages that others slogged through in earlier years.

A new group of global players is taking advantage of the increase in trading regions and newer technologies. These “mini-nationals” or “born globals” serve world markets from a handful of manufacturing bases rather than building a plant in every country as was the procedure in earlier years. Their smaller bureaucracies also allow these companies to move quickly to conquer new markets, develop new products, or change directions when the situation calls for it.

This is an excerpt from Dr. Czinkota’s book Global Business: Positioning Ventures Ahead, co-authored by Dr. Ilkka Ronkainen.

Michael R Czinkota and Ilkka A Ronkainen, Global Business: Positioning Ventures Ahead (New York: Routledge, 2011), pg.91-92.

 

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What Drives Globalization? Part 2/4

Globalization is driven by four factors:

  1. Cost
  2. Market
  3. Environment
  4. Competition

Market:

Consumers in advanced economies are becoming more similar in terms of education, income, lifestyles, aspirations, and their use of leisure time. Marketers of certain products find ready buyers in countries with high purchasing power and well-developed infrastructures. Still other products might fare best in markets that are less sophisticated.

Having a global strategy does not mean that a company should serve the entire globe. Critical choices include deciding where to spend resources and where to hang back. The usual approach is to start by picking regions and then countries within them. Regional groupings might follow the organizational structure of existing multinational management or export offices, such as splitting Europe into northern, central, and southern regions that have similar demographic and behavioral traits. Market data might be more readily available in situations where the firm is grouping markets according to existing structures and frameworks.

This is an excerpt from Dr. Czinkota’s book Global Business: Positioning Ventures Ahead, co-authored by Dr. Ilkka Ronkainen.

Michael R Czinkota and Ilkka A Ronkainen, Global Business: Positioning Ventures Ahead (New York: Routledge, 2011), pg.91.

What Drives Globalization? Part 1/4

Globalization is driven by four factors:

  1. Cost
  2. Market
  3. Environment
  4. Competition

Cost:

Maximizing their investment is a motivator for many global companies. Single-nation markets might not be large enough to offer a company’s country subsidiaries all possible economies of scale and scope, especially given the dramatic changes in the marketplace. The goal, then, is to get the most mileage from the investment cost. At the same time, advertising and promotion can bleed across borders, so it makes sense to make the product available where people are going to hear or learn about it.

A realistic, objective assessment of global opportunities and costs will probably lead to tough decisions about which markets, customer segments, or product positioning to focus on and which ones to bypass as well as appropriate strategies. In pursuing price leadership, for example, the global marketer offers a product or service that is nearly identical to the competition’s, but at a lower price. This often means investing in scale economies and controlling costs that typically include overheads, research and development, and logistics.

The alternative strategy, product differentiation, takes advantage of the marketer’s real or perceived superiorities on value elements such as design or technical support. Cost leadership and differentiation are not mutually exclusive, of course, and should be balanced appropriately. For instance, product components manufactured to one worldwide standard on one production line can be assembled into different final products backed by unique positioning and brand differentiation to meet local customer tastes. And the “mass customization” product design movement that emerged two decades ago still permits low-cost tailoring of manufactured goods to individual customer specifications. Most global marketers combine high differentiation with cost containment so their global activities contribute to economies of scale in production and marketing.

Marketers who opt for high differentiation cannot forget to monitor costs, though, because customer value perceptions rely at least in part on the price paid for the quality obtained. Knowing this, Nissan introduced the sub-$10,000 Versa in the U.S. in late 2008, as the economic recession was just being acknowledged. The small vehicle lacks frills – there is no air conditioning or power steering – but its target market does not expect luxurious touches in a car in that price range.

This is an excerpt from Dr. Czinkota’s book Global Business: Positioning Ventures Ahead, co-authored by Dr. Ilkka Ronkainen.

Michael R Czinkota and Ilkka A Ronkainen, Global Business: Positioning Ventures Ahead (New York: Routledge, 2011), pg.90-91.

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