Do one of the following:
(a) Read the “Volkswagen in Russia” case on pages 237-238 of the Global Business Today text. Prepare an essay of 200-500 words responding to the following questions:
What factors underlay the decision by Volkswagen to invest directly in automobile production in Russia? Why was FDI preferable to exporting from existing factories in Germany? How do you think FDI by foreign automobile companies might benefit the Russian economy? Is there any potential downside to Russia from this inflow of FDI? Volkswagen has signaled that it is going to ‘stay the course’ in Russia despite political and economic upheavals and uncertainties. Why do you think that it made this decision? What are the pros and cons of this decision? In your opinion, is it the correct decision?
or
(b) Read the “Tesco’s International Growth Strategy” case on page 361 of the Global Business Today text. Prepare an essay of 200-500 words responding to the following questions:
What foreign market entry approach does Tesco use? How does this market entry approach fit with its global strategy? How does Tesco translate its core capabilities/competencies in retailing to new countries? What are the benefits of this foreign market entry approach? What are the potential risks associated with it? Does this approach appear to be working? How does Tesco seek to tie their diverse global corporation together?
or
(c) Read the “Starbucks Entering Foreign Markets” case on pages 377-378 of the Global Business Today text. Prepare an essay of 200-500 words responding to the following questions:
Starbucks prefers a combination approach to foreign market entry – the use of joint ventures and licensing. Do you agree with this approach? Why or why not? Many argue that Starbucks coffee is expensive, and yet customers get ‘value’ for their money. How do you think Starbucks has been able to transfer this business model and value proposition to international markets? To stay competitive worldwide, what do you think Starbucks has to focus on in the next decade from a market entry standpoint and from a value proposition to customers?
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