For sure, every individual on earth has the ability to think, however, some may dislike the idea of thinking. According to Myers-Briggs, “the Thinking function simply means there is a preference in finding the basic truth or principle to be applied to the situation.” When thinking we tend to analyze the pros and cons of the situation and come up with a logical decision per our perception. The thinking function used in decision-making is greatly influenced by one’s preference to extroversion or introversion.
Here the thought process is consistent and logical. Introverted thinkers have a difficulty in explaining the situation as they view the situation as a web, not a sequential process. Sometimes they may over-explain an idea in trying to make the listener(S) understand their point of view. Then tend to break problems into fine distinctions having subcategories and sub-principles then use the framework to analyze, problem-solve and improve on the product, process or concept. They come up unique solutions as they as good in finding flaws and holes in the problem. Introverted thinkers tend to improve rather than creating (or fixing what is broken) hence are good consultants.
The thought process concentrates on external laws and rules to arrive at a logical and consistent decision. This is not to mean that they are all rule followers as some of them toes-on-the-line especially if the existing rules are not logical or pragmatic. Most of the people in this group tend to have a schedule or a plan. Extroverted thinkers have a step by step problem-solving tendency. That is to mean that they can not do problem 3 unless they clear problem 2 and 1.
The exchange of capital, goods, and services across the borders of a country is referred to as international trade. This exchange forms a part of the gross domestic product (GDP) of the said country (Wikipedia, 2016). This trade may have an advantage or disadvantage to a country such as (Pandare, 2014);
- Any shortage of goods and/or services can easily be imported from another country filling the gap of the shortage or scarcity.
- Goods and/or services that can be produced at reasonably higher cost compared to purchasing them from another country are brought from cheaper markets outside the country while goods and/or services that can be produced at a cheaper cost within a country are done so making the economy a variety of goods and/or services. The country saves cost in production by producing commodities that it has a comparative advantage over.
- The economy utilizes resources in the production of the best-suited goods and/or services. Full exploitation of this resources results in a great economy without wastage and underutilized resource.
- Since commodities can either be imported or locally produced competition of different companies both locally and abroad compete to meet the local needs thus keeping the price levels of their commodity as low as possible to beat the competition.
- Industrialization in my countries has hastened because capital and resource are mobile from one country to the next. Countries that have industrial advantage provide skills, machinery and capital to the less industrial country to speed up industrialization.
- In the case where commodity prices fall, a producer is able to export his or her commodities to another country where the market price is favorable.
- Movement of goods and services from one country to another necessitates the development of better infrastructure (transport and communication system).
- International trade makes it possible for many individuals to interact and move around promoting peace and cohesion among each other. Individuals discover that no one country is self-sufficient.
- Countries exploit resources that it has a comparative advantage to produce commodities and may lead to exhaustion of important resources that could otherwise be utilized by future generations.
- Lack of government interventions creating restrictions to foreign trade may lead cheap fewer quality products affecting local industries that produce similar products. If the problem persists, local industries will have to close down and create dependence to another country in the production of that product.
- With the drive to make super normal profits, business people may import commodities that are harmful or illegal such as opium adversely affecting the health of the people of that country.
International trade if well managed will have some benefits to a country.
A multinational corporation or MNC is a business entity that simply has operations in several countries but managed at one country (WebFinance Inc., 2016). According to Root (1992), MNCs are referred as so that moment it begins to plan, organize, coordination of its operations (production, marketing, research and development, financing and staffing) on a global scale. Further Root says that they arise due to the lure and strive for cheap labor and raw materials found in other countries. Any institution that obtains a quarter of its revenue from a different country apart from the home country is regarded as an MNC. According to WebFinance Inc. (2016), MNCs can be grouped into:
- Multinational, decentralized corporation with strong home presence
- Global, centralized corporation that acquires cost advantage through centralized production wherever cheaper resources are available
- An international company that builds on the parent corporation’s technology or R&D
- A transnational enterprise that combines the previous three approaches
More than 35000 institutions have invested in foreign countries among which only 100 largest control 40 percent of world’s trade according to UN’s statistics. All these are due to the mobile capital compared to labor and hence the ease to tap, the market, cheap labor and raw materials through establishing subsidiaries in the various countries. Furthermore, Perlmutter (1969), argued based on nationality mix of the headquarters managers, that an international company is said to multinational given it has managers who are nationals of several countries. This is the case of Unilever Company with top management from over fourteen different countries.
According to Wikipedia (2016), ethics is a branch of philosophy that embroils structuring, guarding, and praising concepts of right and wrong behavior. The word is derived from the Greek word ἠθικός ethikos, which is derived from the word ἦθος ethos (habit, “custom”). Ethics addresses the questions “What is the best way for people to live?” and “What actions are right or wrong in particular circumstances?” In other words, ethics is concerned with the morality of people through determination of what is right and what is wrong.
The several types of ethics such as religious ethics, business ethics, legal ethics and personal ethics. However, personal ethics focuses on individual beliefs of what is right and wrong (Charles, 2013). Personal ethics is an independent decision to demonstrate a certain amount of cordiality for the sake of getting along with others. According to G.K. Chesterton being nice to one another is a shadow or reflection of great virtue. Personal ethics discloses one’s true inner values through the day to day activities under different situations.
After reading the “Stimulating Economic Growth Through Technological Advance” article and watched part of President Barack Obama’s State of the Union I think investing in technology can improve or stimulate economic growth. According to Elena Kvochko (2013), many nations, in slow growth periods and persistent unpredictability, seek policies that stimulate growth and creation of job employments. She further claims that information communication technology industry is the fastest growing with many jobs being created and enhancing innovation and development worldwide. The information communication technology industry is expected to increase by 22% by 2020 creating 758800 new jobs in the United States.
Research from various nations indicates that there is a positive correlation between technological advances with the growth of the country. In particular, 10% broadband penetration increase resulted in 1.4% increase in the gross domestic product in emerging markets, with china recording over 2.5% gross domestic product increase. By 2013, the world had 40% of its population subscribed to mobile internet approximately 6.8 billion individuals. The introduction of the 3G internet connection leads to an increase of 0.5% global per capita growth.
Technological advances have increased the efficiency of the process of production of goods and services. Presently, governments have moved online allowing many users to access public services easily and more conveniently. Storage of information has seen a transition from physical file to computers and most recently to a virtual cloud system. Governments have shifted from an information technology infrastructure to a cloud system, mobile app, and e-services. Citizens of these nations, through technology advances and more specifically information technology, have new ways of conducting businesses that are simple, easy and affordable.
In summary, increases in the technological advances will continue to increase the growth of the country’s gross domestic product. Research and development greatly influence the level of technological advancement in any region of the globe and this should be the prime focus of any country seeking to have a sustainable and economic growth over a long term period. Government and private funding for research and development should increase, greater tax credits offered or tax waivers on computers and software at least for the first year to organizations or individuals engaged in research and development.
The web has proven to be an efficient way of communicating. In particular, the web has reduced the time and distance of disseminating information to the intended user. According to Charles W. Lamb, the physical distance in marketing has been eliminated and international marketing reaches a wider audience. Continue reading “How do you measure web marketing success?”
Standardization of the manufacturing, advertising or any other process that business planning to go global is possible, however, very rare (Chand, 2015).
Because markets vary in requirements and characteristics, we can, therefore, say that some element in a market mix may be changed by marketers to better adapt to the markets. Suitability research done on the marketers will guide the decision maker to determine which elements will be changed and which ones will be standardized. Continue reading “Market mix in the global market”
The terms insolvency and bankruptcy may appear to be the same but have different meanings. Insolvency is a financial state where an individual or a company is unable to off debt on time while bankruptcy is a legal action trying to solve insolvency. Insolvency occurs when cash inflow is less that cash out flow and liabilities are greater than assets. An individual or business in the state of insolvency will attempt to solve their issues through filing for bankruptcy. This is a legal declaration of inability to pay off debts.
We can have reorganization or liquidation bankruptcy declared by the insolvent individual. In reorganization bankruptcy, debtor meets the creditor’s requests for a restructure of the debt to make it easily. Whereas in liquidation bankruptcy, debtors sell off some of their assets to meet the obligation.