New Thinking on Immigration

President Trump endorsed the RAISE Act; Reforming American Immigration for Strong Employment. This key new immigration legislation would aim to create a better screening process for who is allowed into the country. Priority would be given to those applicants who speak English, are financially self sufficient, and raise the national level of capability. A point based system (for example a Nobel Prize is worth 25 points) will help prioritize the extent of access and award of green cards to the United States. Countries such as Australia are already using such a assessment of value to society when issuing entry permits.

The bill is still quite a ways away from becoming law, which requires passage by Congress. But clearly it contributes to a useful national debate on immigration. For the time being,. RAISE aims to restrict new immigrants which depend on welfare, as well as protect US citizens from having their jobs threatened. For more details of the Bill please click here

As I See It…Views on International Business Crises, Innovations, and Freedom

Screen Shot 2017-01-11 at 11.56.44 PMWe have an exciting news to share with our readers! Professor Czinkota’s new book, “as I see it”, is now available on business express’s official website. This book presents “the best of 2016” about the core issues of international business, explained and analyzed within 750 words. Also, each analysis is accompanied by a cartoon, developed by Czinkota and award-winning cartoonist David Clark.

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International Logistics, Part 1: Supply Chain Management

Supply chain management encompasses the planning and mangement of all activities involved in sourcing and procurement, conversion, and logistics. It also includes coordination and collaboration with channel partners, which can be suppliers, intermediaries, third party serivice providers, and customers. In essence, supply chain management integrates supply and demand management within and across companies.

Advances in information technology have been crucial to progress in supply chain management. Consider the example of Gestamp (Spain’s leading supplier of metal components for car manufacturers), which used electronic data interchange technology to many reports increased manufacturing productivity, reduced investment needs, increased efficiency of the billing process, and led to a lower rate of logistic errors across the supply process after implementing a supply chain system. Globalization has opened up supplier’s ability to provide satisfying goods and services will play the most critical role in securing long-term contracts. In addition, the physical delivery of goods often can be old-fashioned and slow. Nevertheless, the use of such strategic tools will be crucial for international managers to develop and maintain key competitive advantages. An overview of the international supply chain is shown below:

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The TPP: International Law and Geopolitics

After seven years of negotiations, the Trans-Pacific Partnership (or TPP) has finally been agreed upon by the twelve signatories. The parties involved are the United States, Canada, Mexico, Singapore, Brunei, New Zealand, Chile, Australia, Peru, Vietnam, Malaysia, and Japan. There has been significant controversy regarding the TPP from within the United States, with naysayers arguing that the benefits accruing from the TPP are minimal, and that the US already has bilateral trade agreements with most (if not all) the participating countries, making the bulky agreement redundant. Yet there do exist considerable advantages for the US from the conclusion of the TPP negotiations. To name but a few, the TPP has ensured the updating of the frameworks applied to multilateral trade agreements. It also allows for the harmonization and regulation of standards across a global and dispersed supply chain.

A significant worry has been the investor-state dispute settlement mechanism (ISDS), key buzzwords thrown about by the American and international media. The inclusion of the ISDS in the TPP has been regarded by some, most notably Elizabeth Warren, senator from Massachusetts as a threat to regulatory sovereignty. It allows for corporations to sue governments for changes in the regulatory environment that have adverse impacts upon the former. The legal provision, however, does not allow the reverse, i.e. governments cannot take legal action against firms. Nevertheless, the inclusion of the ISDS is a major development for international law precedent, which has typically been restricted to matters of interstate disputation.

The glaring exclusion of China from the agreement has been highly debated in the intellectual circles of Washington. Some have argued that the nation chose to stay aloof – that the Chinese economy has outgrown the “meager” benefits that could accrue to it from the TPP that pale in comparison to the restrictions and conditions that China would have to meet if it joined. Optimists hope that the coalition of participating countries will be able to contain, offset and challenge China’s rapid relative economic ascent. They suggest that the success of the TPP will lead to a clamor by countries like China and India to be included, the conditions of which would be set by the triumphant and advantaged existing members. Whatever the future of China in relation to the TPP may be, its current exclusion clearly limits its geopolitical reach.

 

Michael R. Czinkota (czinkotm@georgetown.edu) teaches international business and marketing at Georgetown University’s McDonough School of Business. His key books is International Marketing, 10th edition.

Birmingham Insights on Asia – (4) International Strategic Alliance Performance (High Technology Industry in Taiwan)

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This comment is based on Jo-Chun Chieh’s Dissertation written under the supervision of Prof. Michael Czinkota at the University of Birmingham, UK.

3, Organizational culture differences have more influence than national culture differences on International Strategic Alliance (ISA) performance, from the Taiwanese managers’ perspective. Two of the organizational cultural dimensions, professional and pragmatic orientation, ranked as the first two elements of importance when cooperating with a foreign partner, while two of the national cultural dimensions, uncertainty avoidance, long-term orientation, was ranked subsequently. Pothukuchi et al. (2002) addressed a similar concept with differences in organizational culture, compared to differences in national culture, considerably facilitating conflict and impeding cooperation between alliance partners.

4, The study justifies  that ISA practice indeed significantly interferes with the relationship between culture differences and iSA performance. John (1984) indicates that long and sticky partnership between cooperative enterprises reduces that potential for opportunistic behavior while the dissolution of a partnership often leads to poor decision-marketing, interaction and management of inter-organizational relationships. Complementary resources, absorptive capacity, commitment, and trust are important willingness to work together (Day & Klein, 1987). This partnership can evolve positive or negative consequences, depending on how Taiwanese managers implement their managerial practices with foreign partners.

 

Related Article: Birmingham Insights on Asia – (3) International Strategic Alliance Performance (High Technology Industry in Taiwan)