Awareness of safety aspects Essay Example for Free

Awareness of safety aspects Essay Safety aspects, in relation to environment and equipment, include checking the area you are about to do your activity in, i.e. if youre are going to play football, check there is no dangerous items such as large stones or glass on the pitch and to also check the equipment you are going to use to do your activity, to make sure it is all safe and provides proper protection, for example if you going to play football, check your football and goal posts if they are all in good condition, and ware adequate protection, for the game such as shin pads. We need to warm up for several reasons. One is to prepare mentally for the exercise we are about to do and to get our minds in the correct state to carry out the necessary physical exercises. The other is to warm up physically, to stretch the muscles so they are not all tensed up when we go to do physical activity. This makes our bodies a lot more flexible and a lot more prepared for a game situation. It is necessary to warm up the different muscle groups. For example, warming up your biceps and triceps by reaching for your toes and also warming up your hamstrings by doing squat thrusts to warm up your muscles. You should aim to warm up different muscles at different intervals, so as not to warm up your upper-body muscles all in one go whilst leaving out your lower-body muscles. First, for my warm up we will jog around the gym doing around 5 laps and while jogging around the gym I will be shouting out things i.e. left hand down, right hand down, get down and do 10 press ups and so on. After we have stretched off properly I will play a game called bull dog this game is really easy to play and enjoyable as well so how you play is two people (bull dogs) have to stand in the centre of the gym and shout out one of the persons name and what the person does is shouts out proper loud bull dogs so every one has to go from one end of the gym to the other without getting caught and if you do get court your a bull dog as well so this means that the last man standing wins. This game is good for warming you up because it includes a lot of running in the game. There are three phases to a warm up and they are  Pulse raiser: The aim of the pulse raiser is to elevate the heart rate and respiratory rate by doing light physical activity. This increases the blood flow and helps with the transportation of oxygen and nutrients to the working muscles. This also helps to increase the muscle temperature, allowing for a more effective static stretch. Stretches: Stretching is one of the most critical parts of the Warm Up and of my performance. A more flexible muscle is a stronger and healthier muscle. A stronger and healthier muscle responds better to exercise and activities and helps prevent athlete injury. Before sprinting I stretch for up to 7-12minutes.Bend both knees and put the soles of your feet on the floor to begin.  Leaving one leg bent, straighten the other leg and hold either, behind the thigh or if you are flexible behind the calf. Ensure the flats of your feet remain in contact with the floor at all times  For that additional stretch gently push the flat of the foot out in front of you into the floor.  Hold this stretch for 15 30 seconds and repeat on the opposite side. Gluteus Stretch Performed in a supine position. Lie flat out and bend your knees, placing the sole of your feet on the floor. Take leg (a) and place one foot on the knee of the opposite leg (b). Reach through the gap and around the outside of the leg (b), which is bent and on the floor, pull the leg in as far as, is comfortable. Feel the stretch in the buttocks of leg  Hold this stretch for 15 30 seconds  Gluteal stretch  Sit upright with your legs stretched out in front of you. Bend one leg (a) and place it over the top of the straight leg (b). Put the sole of the foot of leg (a) on the floor and hug the knee towards the chest. Feel the stretch in the buttocks on the side of leg. Hold this stretch for 15 30 seconds. A quadriceps stretch- flat on the floor  Lie face down, with your body in a straight line. Bend one leg aiming to put your heel on your buttocks.  Take hold of the ankle and relax in this position. To increase the stretches push your hips into the floor  Hold this stretch for 15 30 seconds  quadriceps stretch performed in a standing position  Ensure your supporting leg is slightly bent and use a wall for support if necessary. Bend your knee and take hold of the ankle of the leg, gently pull the ankle towards your buttocks. Keep your knees together and your head in line with your spine whilst performing this exercise.

Cultural Studies in the Undergraduate Program :: Culture Cultural Pedagogy Education Essays

Cultural Studies in the Undergraduate Program Any discussion of cultural studies must begin with an attempt to define culture. I say attempt because the word 'culture' is so steeped in historical, psychological and political meanings and counter-meanings it has become, in the jargon of literary theory, overdetermined, i.e., so full of meaning it threatens to become meaningless. So instead I will begin with a statement about art which I think goes to the heart of our conceptions of culture. In 1973, Ray B. Browne--an acknowledged pioneer in the field of popular culture studies--wrote that "One of the significant new realizations is that there is no real distinction between 'elite' and 'popular' art, that all aesthetics are on one horizontal continuum ..." (PCE 2). While that may have been a "new" realization in 1973, I believe it was premature, because I think we could agree that even in 1995 there is probably not a single campus where it is generally accepted that such distinctions between high and low art do not exist. I would say the same prejudice still exists about what we mean by the word culture. For instance, in the supposedly sophisticated cyberdiscourse of the Internet, where dozens of discussion groups on cultural studies list hundreds of postings from thousands of cultural studies pioneers, still there persists an assumed distinction between the high and the low, only now it is referred to as the difference between the study of capital 'c' Culture and all ot her kinds. Ray B. Browne's optimism notwithstanding, apparently in the ensuing two decades we have merely traded the rhetoric of high and low art for that of upper and lowercase culture. It is a persistent myth of most societies but particularly of American society that popular art and its attendant culture are somehow a fundamentally different "thing" than whatever it is we mean by high art and its culture. In fact, I would assert that the word culture itself still means for most Americans the opera, the symphony, museums--places and rituals associated with money and privilege. In other words, culture is a synonym for class--or rather, for high class. To counter that myth, cultural studies begins with the understanding that all citizens in a society both consume and produce culture; that there are no absolute distinctions to be made between upper and lowercase culture. To quote David Trend on this idea (and by the

Smooth Otter Report

INTRODUCTION Otters belonging to the order Carnivora of class Mammalia, are semi-aquatic members of the family Mustelidae which also includes weasels, martens, polecats, badgers, skunks, grisons and minks. Otters are placed in the sub-family Lutrinae (Khan W. A. et al. ,2010). Genus Lutrogale ;Smooth-coated otter (Lutrogale perspicillata) (Ogamba E. N. & Abowei J. F. N. ,2012) ( Figure 1) . The smooth otter is the largest otter in Southeast Asia that comment otter. It was named for its shorter, smoother coat than that of other otters with appears velvety and shiny.This otter is monogamous and usually seen – round in small family groups of 4-6 members comprising a pair and their offspring from breeding seasons. It has a more rounded heads and a hairless nose compared to other otters. It also has a tail that is more flattened, in contrast to the more rounded tails of other species and measures 60% of its body length. Otters dependent on the monsoon rains breed between August and December. Gestation period is 61-65 days. They give birth to 2 to 5 cuns per litter.The young are born and raised in burrow near the water. Smooth Otters may hunt as a team either at night or in the daytime. They capture their prey with mouth, but their strong, webbed feet with sharp claws are dexterous enough to retrieve and manipulate objects. Their food likes fish, frog, prawn and crab. Besides, smooth-coated otter are excellent aquatic adaptation. It is possible to introduce to each other at all age; it is infinitely more successful when the otters are young (IUCN/SSC, 2008). Hartley R. 2011 had mentioned that as a social animal, the smooth-coated otter lives in family groups consisting of a male, dominant female and cubs. They are a proficient and ready swimmer. Besides, they also have the usual humped otter gait on the land, and can move quite rapidly . It is possible that there are no smooth otters currently in captivity in zoos likes in Zoo Taiping or wildlife parks. Since they are noisy, extrovert and tolerant of humans, adapting well to zoo life, this is surprising (Wright L. C, 2010). [pic] Scientific classification | |Kingdom: |Animalia | |Phylum: |Chordata | |Class: |Mammalia | |Order: |Carnivora | |Family: |Mustelidae | |Subfamily: |Lutrinae | |Genus: |Lutrogale | |Species: |L. perspicillata | LITERATURE REVIEWS Characteristics Smooth coated otter is nocturnal mammal otter and adapted to a semi-aquatic mode of life with flattened head, thick muscular tail, smooth and dense pelage and comparatively large paws that are webbed between digits (Roberts, 1997 ; Khan W. A. et al. ,2010). Webbing between all digits but, more extensive on the hind feet. The claws are sharp and probably aid in gripping.The hind feet are generally larger than the fore and the hind legs are longer leading to the typical hump-backed gait when traveling across land supported by Smith J. R. , 2008. The hair structure of the Lutrinae has been analysed to see if the different s pecies could be identified using hair characteristics and also to determine if the hair characteristics have an adaptive value or are influenced by the phylogeny of the group (Kuhn, Rachel A. & Wilfried M. ,2010). Habitat Otter sites varied significantly from non-otter sites, and comprised of loosely packed sand and rock, and lacked hard-packed sand, stone, gravel, vegetation and canopy cover (Shenoy K. , Varma S. & Devi Prasad K. V. , 2006).The more natural the surroundings the better so a substrate of grass, soil, pebbles, non abrasive sand (not sharp sand), and mulch as opposed to concrete will be beneficial to the otter group. If the pond is artificial and not filtrated it must be cleaned weekly. Fresh drinking water must be supplied for each day in a clean, non- spillable, disinfected container. The warmer the water the more these tropical otters swim. An ideal temperature is about 80 to 85 ° F (26. 6 – 29. 4 ° C). Pools can be constructed of many different materials such as plastic liners, concrete, gunnite or a natural pool dug out to the appropriate depth (IUCN/SSC, 2008). Behavior Smooth-coated otters are strong swimmers (Lariviere S. & Hwang Y. T. ,2005).In short, it is likely that otters undoubtedly store enough oxygen in the lungs, blood and muscles for a typical dive but experience bradycardia when pushed as a result of fear or necessity (Smith J. R. , 2008). Although otters enjoy and spend a lot of time in water they also require plenty of dry land for resting, grooming, digging and foraging (IUCN/SSC, 2008). Food and feeding habits The selection of prey by the smooth-coated otter in response to the variations in abundance of fish (Asghar Nawab & Syed Ainul Hussain, 2012 ). Smooth-coated otter is a top carnivore of wetlands and feeds mainly (up to 96%) upon fish (Khan W. A. et al. ,2010). Surprising, Goldthorpe et al. 2010, reported that a smooth-coated otter (Lutrogale perspicillata) was observed and photographed attacking and killing a water monitor lizard (Varanus salvator) in a small pond at the Forestry Research Institute, Malaysia, Kuala Lumpur. Smooth-coated otter attacking and killing such a large animal became the targets of repeated â€Å"tail-nipping† by the otters. The river otter has few natural predators because of its strength, sharp teeth, aggressiveness when attacked, and aquatic habits (Saunders, D. A. 1988). Communication According to Duplaix,1980 and Maxwell,1960;Wright L. C. , 2010;are two good sources for information about this species vocalizations, particularly the latter. Duplaix speaks of harsh nasal snorts and whines, and says they are a noisy species, with a varied repertoire of discrete social sounds.This is backed up by Maxwell, 1960, account of Mijbil, his pet smooth-coated otter of the Iraqi subspecies. Maxwell describes the call note as a short, anxious, penetrating but not loud chirp. The query is Ha! in a loud, harsh whisper. Furthermore, Maxwell, 1960, also describes a c ontinuum through from the chirp to a musical bubbling interspersed with chirps to a high, snarling caterwaul or scream/wail preceding attack. The main form of non-vocal communication in this species is spraint, which is produced frequently. The animals create large, very smelly communal latrines at prominent sites, such as large flat rocks, comparatively high up river banks compared to sympatric Eurasian Otters.In communication with other otters in the family group, otters seem to use their mouths as the main means of non-vocal communication, mouthing, nipping and gripping each other (Wright L. C. , 2010). Breeding Khan W. A. et al. ,2010, stated that this animal form strong monogamous pairs; males are larger but still females dominate the pair. Breeding may occur throughout the year, gestation period varies from 61-63 days and young ones at their birth are covered with fur and their eyes do not open until up to 10 days. The weaning takes almost 130 days and the young ones start tak ing fish at the age of three months. Liter size of 2-4 cubs is normal and rarely five but recently six cubs have been observed in Sindh. TreatThe smooth-coated otters considered to be â€Å"Vulnerable† due to an inferred future population decline caused by habitat loss and exploitation (Hussain et al. , 2008). Facing extremely high risk of extinction due to multitude of detrimental factors (Muhammad Rais et al. ,2009). Khan W. A. et al. , 2010, reported that habitat fragmentation, otter-human conflicts, hunting for skins and lack of awareness among general public are main threats to the species. METHODOLOGY Post monitoring and data collection. (General activity) I studied 3 smooth-coated otter ( Lutrogale perspicillata) at Zoo Taiping. I did not collect data on pre behavior because it was a one day field trip only.I recorded the smooth-coated otter`s activity every 5 min via scan sampling with instantaneous recording. I adapted behavioral categories and de? nitions from http: //www. seaworld. org/animal-info/info-books/otters/adaptations. htm. The de? nitions of behaviors that I recorded are in Table I. I recorded observations from 12. 40 p. m to 1. 30p. m.. |Table I : Behavior classi? cations and description | |Category label |De? nition of activities included within category | |Groom |All otters must continually groom their fur to maintain its insulating qualities.Otters spend a | | |substantial amount of time grooming, and many species of river otters have designated areas on land for | | |drying and grooming their fur. Most vigorously dry themselves by rolling on the ground or rubbing | | |against logs or vegetation. | |Swim |Otters are excellent swimmers. They swim with movements of the hind legs and tail. Freshwater otters | | |†dog paddle† with all four feet when swimming slowly or floating. When swimming at a high speed, the | | |entire body, including the tail, undulates up and down and the hind feet steer. | |Play |Some researcher s believe that sliding is a form of play in river otters.For some species, otters of all| | |age classes have been observed sliding. Others believe otters only use these slides for low-energy | | |travel, maintaining that otters generally do not climb to the top of a slope for another slide. These | | |latter researchers have observed very little behavior they interpret as play. | |Rest |Freshwater otters generally rest and sleep on land, either above ground or in dens. They are not | | |particular about where they sleep and often do so even in areas of moderate disturbance.Individual | | |animals often have several resting places. | |Feed |The Smooth-coated otter is a carnivore and in the wild its diet is more than 90% fish over 15cm long, | | |mainly slow-moving fish such as catfish; the balance is frogs, birds, turtles, water snakes, crabs and | | |water rats. The metabolic rate is high, and these active otters will consume 20% of their bodyweight a | | |day. In the wild, they wi ll have several hunting sessions throughout the 24-hour period, interspersed | | |with rest periods. |Diving |Otters can remain under water for 6 to 8 minutes. | |All other behavior |Communication | | |Drinking | | |Defecating | | |Urinating | |Adapt from http://www. seaworld. org/animal-info/info-books/otters/adaptations. htm | RESULT No | | | | |[pic] |[pic] | |12. 40 p. m : Play |12. 45 p. m : Rest | |[pic] |[pic] | |12. 50 p. m : Swim |12. 55 p. m : Rest | |[pic] |[pic] | |1. 00 p. m : Groom |1. 00 p. : Rest | | | | |[pic] |[pic] | |1. 05 p. m : Swim |1. 10 p. m : Rest | |[pic] |[pic] | |1. 15 p. m : Play |1. 20 p. : Swim | |[pic] |[pic] | |1. 25 p. m : Groom |1. 30 p. m : Rest | DISCUSSION From monitoring, I can see the smooth-coated otter have recycles similar activities. Much activity occurs in the water. The webbed feet, strong legs, and long, muscular body and tail adapt the otter to a semi-aquatic lifestyle. Smooth-coated otters are swim with movements of the hin d legs and tail.They use all four feet when swimming slowly or floating. The fur is thick and water proof with two types of hair; a dense under fur which traps an insulating layer of air and remains dry while the otter is swimming and the longer, overlying guard hairs that are water proof (Foster-Turley et al. , 1990; Khan W. A. et al. ,2010 ). Once in the water, an otter is a tireless and superb swimmer, propelling itself with the tail, which also serves as a rudder, and powerful thrusts of the hind limbs. Although otters enjoy and spend a lot of time in water they also require plenty of dry land for resting, grooming, digging and foraging (IUCN/SSC, 2008). On land, they lope or bound.Grooming is a frequent activity and entails rolling in the snow, mud or vegetation, often at the same location known as a landing or a hauling-out site. River otters engage in activities collectively designated as play, for example, repeated touching, shoving, tossing, and manipulating of prey, stones or other objects, or tobogganing down mud or snow slides (Saunders D. A. ,1988). Like other carnivores, smooth-coated otters use scent for inter and intra specific communication. They have a pair of scent glands at the base of the tail, which they use to mark vegetation, flat rocks, or shorelines near feeding areas. This marking behavior in otters is called sprainting.Most of the spraint sites consisted largely of loosely packed sand, and a small amount of rock, but lacked canopy cover, dense vegetation and stony or gravely substrates. Sites with these features are suited for grooming activities, which may explain why the substrate seemed to be the major factor in site selection by otters (Shenoy K. , Varma S. & Devi Prasad K. V. , 2006). Otters are intelligent, active, curious creatures and an ideal day would be to be fed 3 or 4 times a day, have plenty of stimulation and activities which include playing and foraging and also have time to rest out of the public view if so desired (IUCN/SSC, 2008). Vocal, tactile, and chemical signals are the chief means of regulating otter social behavior. Besides, the otters use chirping and humming sounds as contact calls.They hiss, purr, and whistle in other contexts (Saunders D. A. ,1988). CONCLUSION Smooth-coated otter called as Lutrogale perscipillata is known to Zoo Taiping. Besides, they are highly charismatic and popular animals of high concern to fishermen, naturalists, scientists and wild life conservationists the world over. Otters have an intrinsic beauty and they are exciting. Smooth-coated otters, one of the most intriguing semi aquatic mammals, habitual of living amphibious lifestyle, both in water and nearby lands are celebrated for living a life of mystery, disguise and concealment (Singh A. K. , 2011). Smooth-coated otters are well adapted to swimming and foraging in the water supported by Ferti D. Jackson M. & Yin S. , 1994. They have aqua dynamic, webbed feet, fine rudder, fur-tive and high metabolic rat e. It was amazing facts by Khan W. A et al. , 2010, the smooth coated otter (Lutragale perspicillata) considered to be a suitable indicator of pollution level in a wetland. Unfortunately, the smooth-coated otter life is on the brink of extinction. All small carnivore sightings were in or adjacent to protected areas. While this may suggest that their status outside such places could be of concern, it may simply reflect unequal search effort, in that night drives were not conducted at the same rate outside protected areas (Pillay R. ,2009).Otters need to be noticed to undertake stiff protection, taking practical steps for preventing decimation of endemic populace going from â€Å"Vulnerable† under â€Å"Red List† of IUCN to endanger with each passing day. The smooth-coated otter is an important ecological indicator of a healthy wetland and associated biodiversity, especially the fish fauna (Khan W. A. at el. ,2009). Feeroz M. M. , Aziz M. A & Thanchanga P. K, 2011, suppo rted that good habitats with enough food and little human interference can enhance and ensure breeding potentiality and success as well as survival. REFLECTION Firstly, praise to Allah and special thanks to Dr. Syakirah, my fellow course-mates and my family in helping me doing this assignment.My second animal observation at Zoo Taiping is smooth-coated otter. There are a group of three active smooth-coated otters in a spacious and natural like enclosure supported by Shenoy K. , Varma S. & Devi Prasad K. V. , 2006. I watched them for about an hour and it’s really fun and entertaining to watch them with their recycle behavior activities. Most of the time, the otters enjoyed swim in the â€Å"swamp† area and resting on the rocks while grooming. Sometimes, they also play around with each other on the sand area and return to water to swim. IUCN/SSC, 2008, mentioned that those otters are very great swimmer and diver. I was really exciting to see them doing that.There was a t ime when they just stand beside the glass window looking at all the people outside like they are really proud when people watch them supported by Wright L. C, 2010. By looking at the otter’s activity for around an hour, it taught me a lot on their behavioral adaptation. It makes me realize how important and valuable are our nature. Hussain et al. , 2008, reported that smooth-coated otter is also one of the â€Å"Vulnerable† species and human is one of the factors and greatest threat to them, both directly and indirectly. Habitat destruction, water pollution, fishing activity and disease can lead to fragmentation of their populations and extinction.It is our responsibility to protect our wildlife and make sure this little and full of fun creature to continue swimming for years to come. Stop pollution and live harmony with nature so that our next generation can experience and appreciate what we have today. Overall, by writing this report I gained some researching benefit s. One is that I am more aware of what is happening to endangered species. Another is that I know now that humans have a responsibility to protect our wildlife. I also gained confidence in myself. By writing this report, I have some experience in writing reports, and as a biology teacher, I will share this great information to my students, family and friends. REFERENCESAsghar Nawab & Syed Ainul Hussain, (2012), Prey selection by smooth-coated otter (Lutrogale perspicillata) in response to the variation in fish abundance in Upper Gangetic Plains, India Feeroz M. M. , Aziz M. A & Thanchanga P. K, (2011). BREEDING ACTIVITIES OF Lutra perspicillata IN BANGLADES. IUCN Otter Spec. Group Bull. 28(A) 2011. http://www. otterspecialistgroup. org/Bulletin/Volume28A/Feeroz_et_al_2011a. pdf Ferti D. , Jackson M. & Yin S. , (1994). Otters In Galveston Bay Waters. Galveston Bay Foundation. Vol. 6, Number 3. Goldthorpe, G. , Shepherd, C. , Hogg, S. and Leupen B. , (2010). Predation of water monitor lizard (Varanus salvator) by smooth-coated otter (Lutrogale perspicillata) in Peninsular Malaysia. IUCN Otter Spec. Group Bull. 27  (2): 78 – 84 Hartley R. , (2011). Animal facts: Smooth-coated otter. http://www. helium. om/items/2226524-smooth-coated-otter-lutrogale-perspicillata-vulnerable-otter-species-icun-red-list-fishing-otter Hussain, S. A. , de Silva, P. K. , Mostafa Feeroz, M. (2008). Lutrogale perspicillata. In: IUCN 2009. IUCN Red List of Threatened Species. Version 2009. 1. . IUCN/SSC Otter Specialist Group Otters in Captivity Task Force. (2008). Minimum Husbandry Guidelines for Smooth-Coated Otters in Captivity. http://www. otterspecialistgroup. org/Library/TaskForces/OCT/Husbandry_Guidelines_for_Keeping_Smooth-Coated_Otters_in_Captivity_1st_Edition. pdf Khan W. A. et al. ,(2010). Status of Smooth Coated Otter (Lutrogale perspicillata sindica) in Pakistan. Pakistan J. Zool. , vol. 42(6), pp. 817-824, 2010. Khan W. A. et al. 2009). A SURVEY OF SMOOTH COATED OTT ERS (Lutrogale perspicillata sindica) IN THE SINDH PROVINCE OF PAKISTAN. IUCN Otter Spec. Group Bull. 26(1) 2009 Kuhn, Rachel A. & Wilfried M. ,(2010). Comparative hair structure in the Lutrinae (Carnivora: Mustelidae) mammalia. Volume 74, Issue 3, Pages 291–303, ISSN (Online) 1864-1547, ISSN (Print) 0025-1461, DOI: 10. 1515/mamm. 2010. 039,August 2010 Lariviere S. & Hwang Y. T. ,(2005). Mammalian Species : Lutrogale perspicillata. American Society of Mammalogists Muhammad Rais et al. ,(2009). Recent Records of Smooth-Coated Otter (Lutrogale perspicillata) from Sindh, Pakistan* Pakistan J. Zool. , vol. 41(5), pp. 13-414, 2009 http://zsp. com. pk/pdf1/413-428%20(11). pdf Ogamba E. N. & Abowei J. F. N. ,(2012). Some Predatory Fishes, Birds, Mammals and Some Other Animals in Culture Fisheries Management. International Journal of Fishes and Aquatic Sciences 1(1): 16-34, 2012 ISSN: 2049-8411; e-ISSN: 2049-842X  © Maxwell Scientific Organization, 2012 Otters. (2005). A SeaWorld E ducation Department Publication Pillay R. ,(2009). Observations of small carnivores in the southern Western Ghats, India. Small Carnivore Conservation, Vol. 40: 36–40, April Saunders D. A. ,(1988). Adirondack Mammals. State University of New York, College of Environmental Science and Forestry. 16pp. http://www. esf. edu/aec/adks/mammals/otter. htm Shenoy K. ,( 2003). `Against the Current` :Otters in the River Cauvery, Karnataka, Occasional Report No. 11. Otter Research Group Japan. Wildlife Trust of India, New Delhi. Pp Shenoy K. , Varma S. & Devi Prasad K. V. ,(2006), Factors determining habitat choice of the smooth-coated otter, Lutra perspicillata in a South Indian river system. CURRENT SCIENCE, VOL. 91, NO. 5, 10 SEPTEMBER 2006 Singh A. K. , (2011), Smooth Coated Otters of Cauvery River : â€Å" Ambassadors of wetlands Ecology, Behaviour and Conservation†. http://mmhillswildlife. blogspot. com/p/cauvery-otter. html Smith J. R. ,(2008).

Global Business Environment - Free Essay Example

Sample details Pages: 27 Words: 8129 Downloads: 8 Date added: 2017/09/18 Category Business Essay Type Argumentative essay Tags: Advantages And Disadvantages Essay Globalization Essay Did you like this example? Unit 1 Global Business Environment Structure 1. Introduction 2. Meaning of Globalisation 1. 3Driving Forces of Globalisation 1. 4Dimensions of Globalisation 1. 5Stages of Globalisation 1. 6Introduction to Theories of International Trade 1. 6. 1 Absolute Advantage Theory 1. 6. 2 Comparative Cost Advantage Theory by David Ricardo 1. 6. 3 Factor Endowment Theory (Heckscher-Ohlin Thesis) 1. 7 Trading Environment of International Trade 1. 7. 1 Tariff and Non-tariff Barriers 1. 7. 2 Trade Blocs – Regional Economic Integration 1. 7. 3 Raising of New Economies 1. 8Self Assessment Questions 1. 9Answers . 10Case Studies 1. 1 Introduction Globalization describes an ongoing process by which regional economies, societies, and cultures have become integrated through a globe-spanning network of exchange. The term is sometimes used to refer specifically to economic globalization: the integration of national economies into the international economy through trade, foreign direct investm ent, capital flows, migration, and the spread of technology. However, globalization is usually recognized as being driven by a combination of economic, technological, socio-cultural, political, and biological factors. The term can also refer to the transnational dissemination of ideas, languages, or popular culture. Looking specifically at economic globalization, demonstrates that it can be measured in different ways. This center around the four main economic flows that characterize globalization: †¢ Goods and services, e. g. , exports plus imports as a proportion of national income or per capita of population †¢ Labor/people, e. g. , net migration rates; inward or outward migration flows, weighted by population †¢ Capital, e. g. , inward or outward direct investment as a proportion of national income or per head of population Technology, e. g. , international research development flows; proportion of populations (and rates of change thereof) using particular i nventions (especially factor-neutral technological advances such as the telephone, motorcar, broadband). 1. 2 Meaning of Globalisation Globalization refers to shift towards a more integrated and interdependent world economy. Globalization has two main components: 1. Globalization of Markets: It refers to the process of integrating and merging of the distinct and separate national markets in to one global market place. E. g. Global acceptance of consumer products such as Coca-Cola, Levi’s jeans, McDonalds, etc 1. Globalization of Production: It refers to the tendency among many firms to source goods and services from different locations around the globe in order to take advantage of national differences in the cost and quality of factors of production (labor, energy, land and capital). E. g. The Boeing Company’s airliners source various components from various parts of globe. 1. 3 Driving Forces of Globalisation 1. Declining trade and investment barriers After the World War II the lowering of trade barriers led to the free flow of goods, services, and capital between nations. In additions to lowering of trade barriers, many countries have also removed restrictions on barriers to FDI. These two changes made the laws less restrictive there by encouraging both inward and outward investment by foreign firms. 2. The role of technological change Advances in microprocessors and telecommunication Emergence of the internet and World Wide Web Innovations and development in the transportation technology 3. Other Environment specific drivers Competition Regional, economic and political integration Economic growth Converging consumer needs Cost reduction Increase sales and profits Features of Globalisation †¢ Buying and selling goods and services from o any country in the world. Due to globalization, entire world is treated as a single market. Thus product can be purchased and sell at any place of the world †¢ Operating and planning to expa nd business throughout the world. Because of globalization firm can operate its function at anywhere of the world †¢ Erasing the difference between domestic market and foreign market. Globalization helps to think entire world as single market. †¢ Establishing manufacturing and distribution facilities in any part of the world based on the feasibility and viability rather than national consideration. †¢ Globalization makes product planning and development based on market consideration of the entire world. Sourcing of factors of production and inputs like raw materials, machinery, finance, technology, human resources, managerial skills from the entire globe. Advantages of Globalisation: 1. Free Flow of Capital Globalization helps free flow of capital from one country to another country. Globalization increases capital flow from surplus countries to the needy countries, which in turn increase the global investment. 2. Free Flow of Technology Globalization helps in the flow of technology from advanced countries to the developing countries. This helps the developing countries to implement new technology. 3. Increase in Industrialization Free flow of capital along with the technology enables the developing countries to boost industrialization in their countries. This ultimately increases global industrialization. 4. Spread up of Production Facilities Throughout the Globe Globalization of production, leads to spread up of manufacturing facilities in all the global countries depending upon the locational and various favourable production factors. 5. Balanced Development of World Economies With the flow of capital, technology, and locating the manufacturing facilities in developing countries, the developing countries industrialise their economies. This in turn leads to balanced development of other countries. . Increase in Production and Consumption Increased in industrialization in the globe leads to increase in production and thus results in b alanced industrial development along with increase in income enhances the levels of consumption. 7. Lower Price with High Quality Increased industrialization, spread up of technology, increased production and consumption level enable the companies to produce and sell the products of high quality at low prices. 8. Cultural Exchange and Demand for a Variety of Products Globalization reduces the physical distances among the countries and enables people of different countries to acquire the culture of other countries. The cultural exchange, in turn, makes the people demand a variety of products which are being consumed in other countries. Ex: ‘American pizza’ in India, ‘Hyderabadi biryani’ and ‘Masala dosa’ on abroad. 9. Increase in Employment and Income Globalization results in shifts of manufacturing facilities to the low wages developing countries. As such, it reduces job opportunities in advanced countries and alternatively creates job opp ortunities in developing countries. 0. Higher Standard of Living Globalization reduces prices and thereby enhances consumption and living standards of people in all countries of the world. 11. Balanced Human Development Increased industrialization on balanced lines in the globe, improves the skills of the people of developing countries. Increased economic development of the country enables the government to provide welfare facilities like hospitals; education institutions etc, which in turn contribute towards the balanced human development across the globe. 12. Increase in Welfare and Prosperity The balanced industrial, social and economic development of the world nations consequent upon the globalization along with the welfare measures provided by government lead to increase in the welfare of the people and prosperity of the world countries. Disadvantages of Globalisation 1. Globalisation Kills Domestic Business MNCs from advanced countries utilize the opportunities created by globalization, establish manufacturing and marketing facilities in developing countries. The developing countries fail to compete with MNCs on the technology and quality front. This leads to closing down of the domestic companies. 2. Exploits Human Resources The process of globalization helps MNCs to move to the developing countries which lack adequate laws and regulations to protect human resources and the environment. 3. Violation of Labour and Environment The foreign companies which are located in developing countries invariably violate the labour and environmental laws in order to have cost advantage. These companies employ child labour, pollute environment, ignore workplace safety etc. 4. Leads to Unemployment and Underemployment MNCs produce the products in their home countries or in some other foreign countries and market them in developing countries. Therefore, the domestic industry’s operation is too reduced. This in turn leads to reduction in employment opport unities particularly in less developed countries. 5. Decline in Demand for Domestic Products Selling of high quality foreign products at low prices by MNCs reduces the demand for the domestic products. 6. Decline in Income Unemployment and decline in demand for domestic products of both industrial and agricultural goods (including service) leads to reduction in income of the people. . Widening Gap between the Rich and the Poor Competent people, people with innovative skills, efficiency etc. , get abnormal income while other average people have to strive for even minimum wage. This results in widening the gap between haves and the have-nots. 8. Transfer of Natural Resources MNCs establish their manufacturing facilities in developing countries exploit their natural resources and sell products to other countries. 9. Leads to Commercial and Political Colonialism The critics of globalization fear that the globalization ultimately results in commercial by colonialism by the super powe rs like USA and EU. 10. National Sovereignty at Stake The critics of globalization view that globalization results in shift of economic power from the independent countries to the supranational organizations like WTO, EU etc 1. 4 Dimensions of Globalisation There are four dimension of Globalization 1. Building the global economy 2. Formation of world opinion 3. Democratization, or the creation of a global community 4. The emergence of global political institutions. 1. Building the global economy †¢ In the longer run, the evolution of the global economy of international and interregional trade is primarily a function not of actual or growing GNP, but of potential for structural change. 2. Formation of world opinion †¢ World opinion aids in the construction   of social reality in that it helps us to make sense of the world; †¢ It also aids in the clarification of values by assigning priorities to social  demand, and legitimizing some demands and rejecting others . †¢ The rise of world opinion is the process that defines the global problems around which major issues i. e. f global politics; revolve over the long term of a century or so. 3. Democratization, or the creation of a global community †¢ Democratization is the third dimension of globalization. †¢ In   the   broadest   terms, we might see it, too,   as   a   learning process,   that of the human species learning to live with   itself in conditions of equality under law, to use the earliest   Greek definition of democracy †¢ By global community we mean a civil society that makes possible long-term cooperation at the global level; not only inter-governmental but also inter-organizational, social, and transnational in the broadest sense. For such a community to endure, it would have to be democratic. 4. The emergence of global political institutions. †¢ The emergence of global political institutions will be the fourth dimension of the global ization, the policies that are made at the global level will regulate the business at the global level †¢ These institutions will safe guards the country from various operations like dumping, supply of low quality which will became a comparative advantages to develop and developing countries. 1. 5 Stages of Globalisation Domestic Company International Company(Transfer skills and products) MNC (Products manufactured in the parent country and HR is from the parent country and markets in other countries) Global Company (Either markets or resources are globally sourced E. g. Coke) Transnational Company (Both markets resources globally sourced E. g. Microsoft) 1. Domestic Company: †¢ Limits its operations, mission Vision to the national political boundaries. †¢ These companies focus its view on the domestic opportunities, domestic suppliers, domestic customers etc. †¢ These companies analyze the national environment to exploit the opportunities. The domestic comp any’s unconscious motto is that â€Å"if its happening in the home country its not happening any where†. 2. International Company: †¢ Companies who divide to exploit the opportunities outside the domestic country are start two companies. †¢ Focus of their companies in domestic but extends its wing to foreign countries. †¢ They select the strategy of locating the branch in foreign country extend domestic operation to foreign markets and extend domestic price and product and promotion practice to foreign markets. Company follows these strategies due to limited resources and to learn from foreign market gradually before becoming a global company without much risk. 3. Multinational Company: †¢ Formulates different strategies for different market thus orientation shift from ethnocentric to polycentric orientation. †¢ Under polycentric orientation the office and the subsidiaries of multinational companies work like domestic company in each country wh ere they operate with distinct policies and strategies suitable to that country concerned. 4. Global Company: A Company, which has either global marketing or global strategy †¢ Either produce in home country or a single country and focus on marketing products globally †¢ Produce the products globally and focus on marketing the products domestically Ex. Dr. Reddy’s lab designs and produces drugs in India and markets globally. 5. Transnational Company: †¢ Produces, markets, invest and operate across the world. †¢ It’s an integrated global enterprise which links global resource with global markets at profits. †¢ There is no pure transnational corporation. Most of the transnational companies satisfy many of the characteristic the global corporation. †¢ It’s geocentric in approach. 1. 6 Introduction to Theories of International Trade The fundamental question that arises for most of us at this juncture is why should the business fir ms of one country should go to the country, when the industries of that country also produce goods and market them. What is the basis for international business? A number of theories have been developed to explain the basis for international business. 1. 6. 1 Absolute Advantage Theory (By Adam Smith) Adam Smith the well known economist stated the theory in his book ‘The Wealth of Nations’ in 1776. †¢ The theory is that nation should produce goods in which it has greatest relative advantage. †¢ For Adam Smith the important point in International Business in one of absolute cost advantage. †¢ According to Adam Smith theory Trade can happen between two countries if one country is able to produce at absolute low price and offer to second and second country similarly produce another commodity at absolute low price and offer to first country. †¢ In other words each country will import goods from the cheapest overseas source. Similarly, it exports goods that have cost advantage. It is also called classical Trade Theory. The theory of Adam Smith can be explained by hypothetical simple example of two countries wherein each produces one commodity cheap. Absolute cost advantage in Man hours per unit of output. |Country |Rice |Electronic Chip Boards | |Taiwan |60 |30 | |India |18 |71 | The above example shows two countries Taiwan and India producing two goods rice and electronic chip boards. ? In case of rice, India produces cheaper as compared to Taiwan India has an absolute advantage. ? In case of Electronic chip boards Taiwan produces cheaper as compared to India. Taiwan enjoys an absolute cost advantage. †¢ Hence India should produce more rice than its local consumption. This will help India to export its surplus rice to Taiwan. †¢ Similarly Taiwan should produce more electronic chip than its domestic demand for export to India. Both India and Taiwan will specialize in their absolute cost advantage area of production. More production will lead to more specialization. †¢ Adam Smith pointed out that the scope for specialization depends on the size of the market. †¢ Free international trade increases economic efficiency and consequently economic welfare. Critical assumptions and limitations: o 2 countries and 2 goods in the world o No transportation costs o Constant (linear) returns to scale 1. 6. 2 Comparative Cost Advantage Theory by David Ricardo When each country has an absolute advantage in one of the products, it is clear that trade is beneficial. However, what if one country has an absolute advantage in both products? Then we should consider the country’s comparative advantage. David Ricardo illustrated Comparative cost advantage theory in 1817. He used two countries two commodity model. The conclusions of his model are †¢ Business between two countries is profitable when a country produces one good at a lower cost than other country and that other produces another g ood at lower cost than the former country. Business between two countries is profitable when a country produces more than one product efficiently, but, when it produce one of these product comparatively at greater efficiency than the other product. †¢ Both the nations can engage in international business when one country specializes in the production in which it has greater efficiency in production. Assumptions of the Theory: †¢ The only element of cost of production is labor. †¢ Production is subject to the law of constant returns. †¢ There are no trade barriers. †¢ Trade is free from cost of transportation. Ricardo takes above assumption and explains his theory by an example. The cost conditions of producing cloth and wine prevailing in England and Portugal are assumed: | Country |Man hours per unit output | | |Cloth |Wine | |Portugal |9 |8 | |England |10 |12 | †¢ It may be seen that Portugal has absolute cost advantage in both cloth and wine and E ngland is in disadvantage position. Hence as per Adam Smith’s absolute cost advantage no trade should take place under above conditions. England has wants to sell to Portugal and Portugal cannot get anything cheap for England. By taking above figures we can see if trade can take place between the two countries and benefit both. †¢ Establish domestic exchange ratio in Portugal as 1 unit of wine against 0. 88 of cloth (that is 8/9 = 0. 88). †¢ England establishes an exchange ratio 1 unit of wine against 1. 2 units of cloth (that is 12/10 = 1. 2). By this method Portugal gains if it trades 1 unit of wine that commands little more than 0. 88 unit of cloth. †¢ For England little less than 1. 2 units of cloth per unit of wine will give benefit. †¢ It may be seen that exchange ration between 0. 88 to 1. 2 unit of clothe to 1 unit of wine represents gain to both England and Portugal. †¢ To get benefits of quantity manufacture and specialization both the count ries should specialize in one commodity each. The corner stone of specialization is comparative cost difference. †¢ Portugal is lowest list in both commodities. Its cost difference is greater in wine 12-8=4 man hours as compared to cloth 10-9=1 man hour. †¢ Similarly England has disadvantage in both commodities. For England comparative cost disadvantage in case of clothe is lower than that of wine. †¢ Hence Portugal should specialize in wine production as comparative cost difference is greater in wine than cloth. England should specialize in clothe as it has comparative cost difference is less in case of clothe than in wine. †¢ Ricardo proved that an international division of labor would take place and this would benefit both countries. The location of production of commodities in difference countries follows the principle of comparative cost advantages. Derivates of the Theory: †¢ Efficient allocation of global resources. †¢ Maximization of globa l production at the least possible cost. †¢ Product prices become more or less equal among world markets. †¢ Demand for resources and products among world nations will be optimized. 1. 6. 3 Factor Endowment Theory (Heckscher-Ohlin Thesis) †¢ Swedish economists Eli Heckscher (in 1919) and Bertil Ohlin (in 1933) put forward a different explanation of comparative advantage. They argued that comparative advantage arise from differences in national factor endowments. †¢ By factor endowments they meant the extent to which a country is endowed with such resources as land , labor and capital. Nations have varying factor endowments, and different factor endowments explain differences in factor costs. The more abundant a factor, the lower its cost. †¢ The Heckscher Ohlin theory predicts that countries will export those goods that make intensive use of factors that are locally abundant, while importing goods that make intensive use of factors that are locally scarce. T hus, the Heckscher-Ohlin theory attempts to explain the pattern of international trade that we observe in the world economy. Like Ricardo’s theory, the Heckscher-Ohlin theory argues that free trade is beneficial. †¢ Unlike Ricardo’s theory, however, the Heckscher-Ohlin theory argues that the pattern of international trade is determined by differences in factor endowments, rather than difference is productivity. Assumptions: Heckscher-Ohlin theory is built on the following assumptions. †¢ Perfect competition is in existence for both product and factors in both the countries. Factors of production are perfectly mobile within each country only. †¢ Factors supplies are fixed in each country. †¢ Factors of production are of equal quality in both the countries. †¢ Factors of production have full employment in both the countries. †¢ Factors endowments very from one country to another country. †¢ Business between two countries is free from al l barriers. †¢ There is no cost of transportation. †¢ Production in both the countries is subject to law of returns. †¢ Factor intensity varies between goods. Merits: Despite the assumptions, this theory enjoys the following merits: †¢ This theory provides more valid basis for the existence of international business compared to the other theories. †¢ This theory is superior to the comparative cost theory as it provides the reasons for the difference in cost of production is two countries in terms of differences in factor endowments. †¢ The theory specifies that international business is an extension to domestic or inter-regional trade. †¢ Hence, this theory is viewed as the modern theory of international business. This theory is also called General Equilibrium Theory of international business as it deals with the equilibrium between demand for and supply of the products. †¢ This theory indicates the impact of international business on pr oduct and factor prices. Derivatives: The ultimate conclusions we draw from this theory are: †¢ Price of the internationally traded products tends to be equalized in all the countries of the globe and in all the regions of each country. However, existence of the cost of transportation and the non-existence of the perfect competition are the limitations to this conclusion. Prices of factors of production also tend to equalize across the globe. However, existence of the cost of transportation and the non-existence of the perfect competition are the limitations to this conclusion also. 1. 7 Trading Environment of International Trade †¢ The international trading environment includes important factors such as the trade policies, trade barriers, trade agreements, trading blocs, cartels and multinational trade negotiations. †¢ An international trading firm encounters three sets of environments, viz. , the domestic environment, the foreign environment and the global environme nt. An Indian firm which wants to do international trade is governed by Indian laws like the Foreign Trade Development and Regulation Act, Foreign Exchange Management Act, etc. Some times there are also regulations like the minimum export price. Exports are also affected by the export promotion measures and the general business environment in the country. o Foreign environment here refers to the environment of the relevant foreign market, like the international trade regulations and other business environments of the foreign country concerned. The global environment refers to those global factors which affects international trade such as WTO principles and agreements; other international conventions/treaties/agreements/declarations/protocols, etc. 1. 7. 1 Tariff and Non Tariff Barriers Tariff Tariffs in international trade refer to the duties or taxes imposed on internationally traded goods when they cross the national boundaries. There are various types of tariffs 1. An ad valorem tariff is a set percentage of the value of the good that is being imported. Example: imposition of 30 per cent tax on the value of computers imported. 2. A specific tariff is a tariff of a specific amount of money that does not vary with the price of the good. In other words specific tariffs are levied as a fixed charge for each unit of product imported. Example: a tariff of Rs. 1,000 on each TV imported. Non Tariff Barriers (NTBs) †¢ Non-tariff barriers to trade are trade barriers that restrict imports but are not in the usual form of a tariff †¢ NTBs, some of which are described as new protectionism measures ( as against tariffs which are regarded as traditional barriers), have grown considerably, particularly since around the beginning if the 1980s. The export growth of many developing countries has been seriously affected by the NTBs. Types of Non Tariff Barriers 1. Subsidies †¢ In order to encourage domestic productions or to protect the domestic producer from the foreign competitors, government pays to a domestic producer by reducing operations cost. Such payments are called subsidies. †¢ Subsidies are in different forms. They are: cash grants, loans and advances at low rate of interest, tax holiday, and government procurement of output at a higher rate, equity participation and supply of inputs at lower prices. For Example: To purchase agricultural equipment government provide some subsidies. most of the industrialized countries provided subsidies between 2 to 3 per cent of other industrial out puts Subsidies help the domestic producers in the following ways. †¢ Acquire the character of a low cost producer and have all the advantages of a low cost producer like high profit margin or fixing the price at lower level. †¢ Compete with a foreign producer in the domestic market. †¢ Enter the foreign markets. 2. Import Quotas †¢ Import quota is direct restriction on the quantity of goods which are imported into a cou ntry. There restrictions are imposed by issuing licenses to certain firms and individuals to import certain quantity of the goods. †¢ India has quotas of imports of various goods like cars, motor cycles, milk etc. unto 31st March 2001. Import quotas provide the protection to the domestic firms from the foreign competitions. 3. Voluntary Export Restraints †¢ A voluntary export restraint is the opposite from of import quotas. †¢ A voluntary export restraint is quota on exports of the domestic firm imposed by the exporting country. †¢ Exporting country imposes such restriction, mostly at the request of the importing country. For example: Japanese automobile exporters had such restraint in 1981 due to the request of the US government. Foreign exporters mostly accept for the voluntary export restraint as its violation lead to imposition of import tariffs, import quotas etc. †¢ Import quotas and voluntary export restraints help the domestic firms by providing prot ection from the foreign competitors. These enhance the prices of import goods and make the domestic goods cheap. 4. Local Content Requirements †¢ Local content requirement is a condition that requires some specific fraction of a product imported be produced domestically. The requirement may be in physical terms (50% of the components should be from the domestic country) or in value terms (50% of the value of the product should be produced domestically). 5. Administrative Policies †¢ Governments, in addition to the quotas and other restrictions, use formal and informal policies to restrict imports and boost exports. †¢ Administrative policies are bureaucratic rules and procedures which are formulated to make it difficult to imports to enter the country. †¢ Formal trade barriers like tariffs and quotas are lowest in Japan. Japan mostly uses the administrative policies. 1. 7. 2 Trade Blocs – Regional Economic Integration †¢ A trade bloc is the prolife ration of economic integration schemes. †¢ It is also referred as Regional Integration Agreements (RIAs), Regional Trading Agreements (RTA). †¢ â€Å"Economic integration (trade bloc) is a general term which covers several kinds of arrangements by which two or more countries can agree to draw their economies close together. All of these arrangements have one common feature, the use of tariffs to discriminate against goods produced by countries not party to the agreement†. There are different degrees or levels of economic integration. They are: †¢ Free trade area o A free trade area is grouping of countries to bring about free trade between them. o The free trade area abolishes all restrictions on trade among the members but each member is left free to determine its own commercial policy with nonmembers. †¢ Customs union o A custom union is more advanced level of economic integration than the free trade area. o It not only eliminates all restrictions on trade among members but also adopts a uniform commercial policy against the nonmembers. Common market o The common market is a step ahead of the customs union. o A common market allows free movement of labor and capital within the common market, besides having the two characteristics of customs union, namely, free trade among members and uniform tariff policy towards outsiders. †¢ Economic union o It is more advanced level of integration. o Apart from satisfying the conditions of the common market mentioned above, the economic union achieves some degree of harmonization of national income policies, through a common central bank, unified monetary and fiscal policy etc. Example: Europe Union(EU) †¢ Economic integration o It is characterized by the completion of the removal of all barriers to intra-block movement of goods and factors, unification of social as well as economic policies and all the members bounded by decisions of super national authority consisting of execut ive, judicial and legislative branches. Major Regional Integration Agreements are: †¢ Europe Union (EU) formerly it was called as European Economic Community (EEC) †¢ European Economic Area †¢ Euro-Mediterranean Economic Area (Euro-Maghreb) †¢ EU Bilateral Agreements with Eastern Europe Canada US. Free Trade Area †¢ North American Free Trade Area (NAFTA) †¢ Asia Pacific Economic Cooperation (APEC) †¢ Central American Common Market (CACM) †¢ Cross-Border Initiative †¢ Economic Community of West African States (ECOWAS) †¢ Association of Southeast Asian Nations (ASEAN) †¢ Gulf Cooperation Council (GCC) 1. 7. 3 Raising of New Economies The Association of South-East Asian Nations (ASEAN) †¢ A group of six countries, viz. , Singapore, Brunei, Malaysia, Philippines, Thailand and Indonesia, agreed in January 1992 to establish a Common Effective Preferential Tariffs (CEPT) plan. This plan helped to create an Association of South-Eas t Asian Nations (ASEAN) free trade area in 15 years with effect from January 1993. The CEPT allows for tariffs cut ranging from 0. 50 percent to 20. 00 percent beginning with 15 products. †¢ The emergence and successful operation of EEC and NAFTA gave impetus for the forming of ASEAN. †¢ The ASEAN member countries have developed economically at a fast rate in the globe. Their strength is well educated and skilled human resources. This strength enabled them to achieve faster industrialization. Further the ASEAN member countries are rich in oil, mineral resources, agricultural goods and modern industrial products. †¢ These countries invite and allow the free-flow of foreign capital. †¢ The formation of ASEAN enables the member counties to have close cohesiveness, share their economic and human resources and achieves synergy in the development of their agricultural sectors, industrial sectors and service sectors. †¢ The common historical and cultural backgro und made the member counties to maintain their unity and solidarity by establishing a trade block. ASEAN countries have the determination to develop south-east Asia a nuclear weapons free area and a zone of peace, freedom and neutrality. Asian Free Trade Area (AFTA) The ASEAN countries are vigilant of the developments in the international environment like the formation NAFTA, SAARC and the introduction of Euro. In view of these developments, the ASEAN counties formed the Asian Free Trade Area (AFTA) in September 1994. The AFTA initially set to function for 10 years in order to develop inter ASEAN trade. The objectives of the AFTA are: †¢ To encourage inflow of foreign investment into this region. To establish free trade area in the member countries. †¢ To reduce tariff of the products produced in ASEAN countries. 40% value addition in the ASEAN counties to the product value is treated as manufactured in ASEAN Countries. The Chinese Market †¢ China is a vast country in terms of geographical area (9,571,300 sq. kms. ) and population. Only 10 per cent of China is suitable for agriculture, yet the country is self-sufficient in food. †¢ China started to introduce capitalist business methods in 1978. Privatization of some public sector undertakings began in 1984. Legal protection of intellectual property began in 1988. Internal private sector is restricted to retail business, personal services, food outlets, handicrafts and enterprise with not more than seven employees. †¢ China’s recent economic growth is in private sector. China’s economic reforms are proceeding without publicity. China saw unprecedented economic growth (average annual growth rate of 8%) next only to South Korea. †¢ Chinese economy is enormous. Industry accounts for 45% agriculture for 28%. Major industries include: machinery and metal products (25%), textile and clothing (15%) and agricultural equipment and food processing (10%). According to the World Bank, China’s recent economic growth is mostly in Guangdong Province. SEZs / ETDZs: The special Economic Zones (SEZs) have played a crucial role in China’s rapid economic growth. They also attracted heavy foreign investments. SEZs were supplemented by 14 Economic and Technical Development Zones (ETDZs) in towns and cities along China’s coast. SEZs and ETDZs are free zones, have very low tax rates for local business and accepts any amount of foreign investment. These zones allow the business operations without red tape. Each zone has a special regulatory authority. It supervises joint-ventures. Special tax reductions are applicable to 100% exporting units and units with complete new technology. This experiment was successful and contributed to the economic growth of these regions. The growth rate of SEZs is 20% per annum and living standards of the people of these regions increased more than that of the other areas of China. Foreign Investment: Nearly 75 percent of China’s foreign investment derives from companies owned by Non-Resident Chinese in Hong Kong, Taiwan, Singapore and other countries in the Pacific Rim. These people have roots in various regions of China. China is keen to attract foreign investment in order to: †¢ Generate hard currency earnings. †¢ Train the Chinese workforce in new methods. †¢ To accelerate the learning curve of Chinese business. However, there are certain problems associated with the foreign investment in China. They are: †¢ Foreign investors still have to get the approval of the Chinese bureaucracy. †¢ Skilled manpower is not available. The Japanese Market †¢ Japan rose from the ashes of World War II to the second largest economy of the world. Its GDP was $ 4. 6 trillion in 1996 and its population was 126 million. The per capita GDP of Japanese was $ 40,726 in 1996. †¢ Ministry of International Trade and Investment (MITI) maintained close links with Jap anese corporate sector and directed in its strategies. This factor helped for the rapid growth of Japan during the past fifty years. †¢ MITI encouraged Japanese industry to concentrate on the basic industries like steel and shipbuilding immediately after World War II. †¢ Later, MITI and Japanese industry shifted their concentration to automobiles, consumer electronics and machinery. †¢ Japan’s concentrated industrial structure helped MITI. Large families of interrelated companies called, â€Å"Keiretsu† control the Japanese industry. This industry is centered on a major Japanese bank which meets financial needs of this industry. †¢ Exports are just 9. 9 per cent of the Japan’s GDP. Exports: Japans main export goods are cars, electronic devices and computers. Most important single trade partner is the USA which imports more than one quarter of all Japanese exports. Other major export countries are Taiwan, Hong Kong, South Korea, China and Sing apore. Imports: Japan has a large surplus in its export/import balance. The most important import goods are raw materials such as oil, foodstuffs, and wood. Major suppliers are the USA, China, Indonesia, South Korea, and Australia. Industries: Manufacturing, construction, distribution, real estate, services, and communication are Japans major industries today. Agriculture makes up only about 2% of the GNP. Most important agricultural product is rice. Resources of raw materials are very limited and the mining industry rather small. 1. 8 Self Assessment Questions 1. Globalization refers to _________________________________. 2. Globalization is beneficial for firms because ________________________. . Globalization can create problems for business because ____________________. 4. The main aim of global marketing is to _________________________. 5. _________typically offer more flexibility in international markets. 6. From the point of view of marketing, an organization that enjoys co mpetitive advantage in an industry has done so by ________________. 7. Being a global organization means _______________________________. 8. The work of an international marketer is mainly concerned with ________. 9. The United States former absolute advantage in producing oil drilling equipment is being challenged by which country? 0. A fixed amount of money levied on each unit of a product brought into the country is a(n) ______________. 1. 9 Answers A. Self Assessment Questions 1. a more integrated and interdependent world 2. it opens up new market opportunities 3. it can result in more competition 4. satisfy global customers better than competition 5. SMEs 6. creating superior value for customers 7. creating both standardized and customized products 8. adapting a marketing mix to enter a market in another country 9. Japan 10. specific tariff. 1. 10 Case Studies Case – 1 BPO – Bane or Boon! Several MNCs are increasingly unbundling or vertical disintegrating their activities. Put in simple language, they have begun outsourcing (also called business process outsourcing) activities formerly performed in-house and concentrating their energies on a few functions. Outsourcing involves withdrawing form certain stages / activities and relaying on outside vendors to supply the needed products, support services, or functional activities. Take Infosys, its 250 engineers develop IT applications for BO / FA (Bank of America). Elsewhere, Infosys staffers process home loans for green point mortgage of Novato, California. At Wipro, five radiologists interpret 30 CT scans a day for Massachusetts General Hospital. 2500 college educated men and women are buzzing at midnight at Wipro Spectramind at Delhi. They are busy processing claims for a major US insurance company and providing help-desk support for a big US internet services provider-all at a cost up to 60 percent lower than in the US. Seven Wipro Spectramind staff with Ph. Ds in molecular biology sif ts through scientific research for western pharmaceutical companies. Another activist in BPO is Evalueserve, headquartered in Bermuda and having main operations near Delhi. It also has US subsidiary based in New York and a marketing office in Australia to cover the European market. As Alok Aggarwal (Co-founder and Chairman) says, his company supplies a range of value-added services to clients that include a dozen Fortune 500 companies and seven global consulting firms, besides market research and venture capital firms. Much of its work involves dealing with CEOs, CFOs, CTOs, CIOs, and other so called C-level executives. Evalueserve provides services like patent writing, evaluation and assessment of their commercialization potential for law firms and entrepreneurs. Its market research services are aimed at top0rung financial service firms, to which it provides analysis of investment opportunities and business plans. Another major offering is multilingual services. Evalueserve t rains and qualifies employees to communicate in Chinese, Spanish, German, Japanese and Italian, among other languages. That skill set has opened market opportunities in Europe and elsewhere, especially with global corporations. ICICI Infotech Services in Edison, New Jersey, is another BPO services provider that is offering marketing software products and diversifying into markets outside the US. The firm has been promoted by $2-billion ICICI Bank, a large financial institution in Mumbai that is listed on the New York Stock Exchange. In its first year after setting up shop in March 1999, ICICI Infotech spent $33 million acquiring two information technology services firms in New Jersy-Object Experts an lvory Consulting-and Command Systems in Connecticut. These acquisitions were to help ICICI Infotech hit the ground in the US with a ready book of contracts. But it soon found US companies increasingly outsourcing their requirements to offshore locations, instead of hiring foreign emp loyees to work onsite at their offices. The company found other native modes for growth. It has started marketing its products in banking, insurance and enterprise resource planning among others. It has earmarked $10 million for its next US market offensive, which would go towards R D and back0-end infrastructure support and creating new versions of its products to comply with US market requirements. It also has a joint venture-Semantik Solutions GmbH in Berlin, Germany with the Fraunhofer institute for Software and Systems Engineering, which is based in Berlin and Dortmund, Germany. Fraunhofer is a leading institute in applied research and development with 200 experts in software engineering and evolutionary information. A relatively late entrant to the US market, ICICI Infotech started out with plain vanilla IT services, including operating call centers. As the market for traditional IT services started weakening around mid-2000, ICICI Infotech repositioned itself as a â₠¬Å"Solutions† firm offering both products and services. Today, it offers bundles packages of products and services in corporate and retail banking and insurance, among other areas. The new offerings include data center and disaster recovery management and value chain management services. ICICI Infotech’s expansion into new overseas markets has paid off. Its $50 million revenue for its latest financial year ending March 2003 has the US operations generating some $15 million, while the Middle East and Far East markets brought in another $9 million. It now boasts more than 700 customers in 30 countries, including Dow Jones, Glaxo-Smithkline, Panasonic and American Insurance Group. The outsourcing industry is needed growing from strength. Through technical support and financial services have dominated India’s outsourcing industry, newer fields are emerging which are expected to boost the industry many times over. Outsourcing of human resource services or HR BPO is emerging as big opportunity for Indian BPOs with global market in this segment estimated at $40-60 billion per annum. HR BPO comes to about 33 percent of the outsourcing revenue and India has immense potential as more than 80 percent of Fortune 1000 companies discuss offshore BPO as a way to cut costs and increase productivity. Another potential area is ITES / BPO industry. According to a NASSCOM survey, the global ITES / BPO industry was valued at around $773 billion during 2002 and its is expected to grow at a compounded annual growth rate of nine percent during the period 2002-06. NASSCOM lists the major indicators of the high growth potential of ITES / BPO industry in India as the following: During 2003-04, the ITES / BPO segment is estimated to have achieved a 54 percent growth in revenues as compared to the previous year. ITES exports accounted for $3. 6 billion in revenues, up from $2. billion in 2002-03. The ITES-BPO segment also proved to be a major opportunity for j ob seekers, creating employment for around 74,400 additional personnel in India during 2003-04. The number of Indians working for this sector jumped to 245,500 by March 2004. By the year 2008, the segment is expected to employ over 1. 1 million Indians, according to studies conducted by NASSCOM and McKinsey Co. Market research show that in terms of job creation, the ITES-BPO industry is growing at over 50 percent. Local outsourcing sector is another area India can look for. Legal transcription involves conversion of interviews with clients or witnesses by lawyers into documents which can be presented in courts. It is no different from any other transcription work carried out in India. The bottom-line here is again cheap service. There is a strong reason why India can prove to be a big legal outsourcing industry. India, like the US, is a common-law jurisdiction rooted in the British legal tradition. Indian legal training is conducted solely in English. Appellate and Supreme Court proceedings in India take place exclusive in English. Indian legal opinions are written exclusively in English. Due to the time zone differences, night time in the US is daytime in India which means that clients get 24 hour attention, and some projects can be completed overnight. Small and mid-sized business offices can solve staff problems as the outsourced lawyers from India take on the time consuming labor intensive legal research and writing projects. Large law firms also can solve problems of overstaffing by using the on-call lawyers. Research firms such as Forrester Research, predict that by 2015, more than 489,000 US lawyer jobs, nearly eight percent of the field, will shift abroad. Many more new avenues are opening up for BPO services providers. Patent writing and evaluation services are markets set to boom. Some 200,000 patent applications are written in the western world annually, making for a market size of between $5 billion and $7 billion. Outsourcing patent writ ing service could significantly lower the cost of each patent $15,000 apiece-which would help expand the market. Offshoring of equity research is another major growth area. Translation services are also becoming a big Indian plus. India produces some 3,000 graduates in German each year, which is more than that is Switzerland. Though going is good, the Indian BPO services providers cannot afford to be complacent. Philippines, Mexico and Hungary are emerging as potential offshore locations. Likely competitor is Russia, although the absence of English speaking people there holds the country back. But the dark horse could be South Africa and even China. BPO is based on sound economic reasons. Outsourcing helps gain cost advantage. If an activity can be performed better or more cheaply by an outside supplier, why not outsource it? Many PC makers, for example, have shifted from in-house assemble to utilizing contract assemblers to make their PCs. CISCO outsources all productions and assembly of its routers and switching equipment to contract manufactures that operate 37 factories, all linked via the internet. Secondly, the activity (outsourced) is not crucial to the firm’s ability to gain sustainable competitive advantage and won’t hollow out its core competence, capabilities or technical know how. Outsourcing of maintenance services, data processing, accounting, and other administrative support activities to companies specializing in these services has become common place. Thirdly, outsourcing reduces the company’s risk exposure to changing technology and / or changing buyer preferences. Fourthly, BPO streamlines company operations in way that improve organizational flexibility, cut cycle time, speedup decision making and reduce coordination costs. Finally, outsourcing allows a company to concentrate on its core business and do what it does best. Are Indian companies listening? If they listen, BPO is a boon to them and not a bane. Case Questions 1. Which of the theories of international trade can help Indian services providers gain competitive edge over their competitors? . Pick up some Indian services providers. Which the help of Michael Porter’s diamond, analyze their strengths and weaknesses as active players in BPO. 3. Compare this case with the case give at the beginning of this unit. What similarities and dissimilarities do you notice? Your analysis should be based on the theories explained in this unit. BRIC Countries In economics, BRIC (typically rendered as the BRICs or the BRIC countries) is an acronym that refers to the fast-growing developing economies of Brazil, Russia, India, and China. The acronym was first coined and prominently used by Goldman Sachs in 2001. Goldman Sachs argued that, since they are developing rapidly, by 2050 the combined economies of the BRICs could eclipse the combined economies of the current richest countries of the world. The four countries, combined, currently a ccount for more than a quarter of the worlds land area and more than 40% of the world population. India has stressed the need for the four-nation grouping, BRIC, comprising Brazil, Russia, India and China, to strengthen their bilateral relationships that will help them to be more effective collectively. BRIC accounts for 40 percent of the world’s population, 25. 9 percent of its total geographic area, and 40 percent of global Gross Domestic Product (GDP). According to leading global investment banking and securities firm, Goldman Sachs, BRIC can become collectively bigger than the G7 by 2035. Exhibit 1. 3 The United States has long been a substantial exporter of agricultural goods, reflecting in part its unusual abundance of arable land. In contrast, China excels in the export of goods produced in labor-intensive manufacturing industries, such as textiles and footwear. This reflects china’s relative bundance of low-cost labor. The United States, which lacks abundant low-cost labor, has been a primary importer of these goods. Note that it is relative, not absolute, endowments that are important; a country may have larger absolute amounts of land and labor than another country, but be relatively abundant in one of them. Exhibit 1. 2 Globalization does not take place in a single instance. It takes place gradually through an evolutionary approach. According to Ohamae, globalization has five stages. They are; i. Domestic company exports to foreign countries through the dealers or distributors of the home country. i. In the second stage, the domestic company exports to foreign countries directly on its own. iii. In the third stage, the domestic company becomes an international company by establishing production and marketing operations in various key foreign countries. iv. In the fourth stage, the company replicates a foreign company in the foreign country by having all the facilities including R, full-fledged human resources etc. v. In the fifth st age, the company becomes a true foreign company by serving the needs of foreign customers just like the host country’s company serves. Exhibit 1. 1 Business firms want to globalize in order to expand their markets, increase sales, and increase profits. Free trade agreements facilitate those activities and promote economic globalization. Such agreements vary in scope. Some are bilateral such as the U. S. -Canada Free Trade Agreement and the U. S. -Israel Free Trade Agreement. Others are multilateral and regional such as the North American Free Trade Agreement (NAFTA), Mercosur (including Argentina, Brazil, Paraguay, and Uruguay as full members and Chile as an associate member), and the 18-member Asia Pacific Economic Cooperation Group (APEC). The European Union (EU) goes further by creating a supranational government. And the World Trade Organization (WTO) includes more than 120 nations from around the world. These agreements and organizations are facilitating economic i ntegration on a regional and worldwide basis. Trade agreements facilitate the activities of major companies. For example, Ford Motor Company is working to create a world car that can be sold and used throughout the global village. Trade agreements facilitate distribution systems, franchising, joint ventures, and other cross-border collaborations between and among businesses. Coca-Cola and Pepsi-Cola are sold in hundreds of countries throughout the world. Franchises for McDonalds hamburgers, Pizza Hut, Subway, Burger King, and others carry U. S. trade names as well as U. S. -style fast foods (and fast eating styles) throughout the world. One of the major forces facilitating such globalization is the expansion of communication systems. During the final decades of the 20th century, the Internet globalized communications. One document can be distributed throughout the world in seconds. Using computer software, that document can be converted quickly to various languages for use al most anywhere in world. Telecommunications systems allow radio and television transmissions to be broadcast throughout the world within seconds. For example, the Cable News Network (CNN), based in the United States, produces 24-hour news broadcasts that can be seen around the world by traveling businesspeople and others. CNNs 24-hour coverage of the Persian Gulf War in 1991 established the network as one that serves global audiences. It is not viewed as foreign when it broadcasts to and from countries other than the United States Don’t waste time! Our writers will create an original "Global Business Environment" essay for you Create order