Confronting issues in globalization is a daunting task but it cannot be avoided for anyone living or working in the 21st century. Today’s business models of Multinational Corporation’s stress the importance of ‘sustainability’ in the global supply chain’ and ‘maximizing global efficiencies’. These concepts are complex and require a supported network of integrating mechanisms to successfully sell a product that is consumed across the globe.
This project allows you to experience a practical application of the effects of globalization. You will select a product that you currently use in your home and through an analysis of its manufacturing, sourcing, and sales demonstrate those issues in globalization that affect the product and customer and develop business strategies to address them.
First, find a product you have in your home which is sold in multiple countries. In order to select this product, look for items that bear markings of multiple countries. This marking may include references to ‘distributors’, ‘censors/licensees’, or manufacturer’s with ‘made in’ or ‘made of’ references. You may also see wording on these products such as ‘Assembled in [country name] from US components’. Products marked ‘Made in the USA’ may not be used for this project. These product markings may be in multiple languages.
Next, consult the company web site to see if they have manufacturing or raw material supply operations in two or more countries. If you select a US company that is publicly traded, you will find this in the 10-K report that they file with the Securities and Exchange Commission (SEC).
Do not write a paper about an existing company but make one up yourself. You may use a current business that you’re familiar with to model your own company after.
Before starting to write your paper, you must get an outline approved by your instructor. You will find a dropbox for submission of this outline. Your outline must include a short description of your product, the country or countries selected to analyze, and an overview of the issues in globalization that you will explore.
It is critical that your paper include what proactive measures your company would undertake to address the risks or challenges in globalization that you have identified. Be creative, original, and make sure to be very comprehensive in your analysis and evaluation of what issues in globalization impact your company and what solutions you have developed to address those concerns.
At minimum, your paper should be a minimum of 10-15 pages (not including the cover sheet or references but you may exceed that limit without point deduction. Your final project must be submitted in Microsoft Word, be formatted using the APA style, double-spaced, minimum of 12 inch font, and contain adequate references to support your analysis.
At minimum, your project will contain the following sections:
- Company background and industry
- Explanation of the product
- Customer demographic and profile who consumes your product
- A detailed explanation of the operations performed in multiple countries. For example, Toyota Motor Corporation of North America has a automobile manufacturing corridor which spans a from sourcing and/or manufacturing of auto parts in Mexico, to an automobile factory assembly plant in Texas, through distribution of after-market products in North and South Carolina. You will find some products or industry have like manufacturing corridors.
- Identify any incentives or subsidies provided by host countries to support the manufacturing operation
- Analysis of the corporate strategy to maximize global efficiencies. Examples in this areas may be how the company uses offshoring to support ‘lean manufacturing’ or outsources certain parts of labor for production of the final product.
- Identification and discussion of the economic integration policies that the involved countries have formed to support manufacturing, sourcing, and marketing of your product. An example might be the country or countries have joined a common market such as Mercosur, common market formed between some countries in South America.
- Identification and discussion of any free trade agreement/agreements used by the company to facilitate the movement of the product internationally.
- Identification of any controls used in the labor markets that would subvert attempts to unionize or manage regional wage rates.
- An analysis and evaluation of any economic impacts to the communities where manufacturing operations take place. Your research will probably identify advantages and disadvantages in the host or home country/countries. An example of an economic impact would be the loss of tax revenues or tax grants from a home to a host country.
- An analysis and evaluation of any environmental damages in the manufacturing area.
- An analysis and evaluation of any intellectual property issues that have occurred through doing business in multiple countries.
- An analysis and evaluation of any laws impacted by the effects of globalization in this industry
- An analysis of any significant changes to the company’s business model that you can find based upon the effects of globalization.
- If your country or industry is represented is impacted by any programs, policies, or charters underway through WTO or NGO actions.
- A closing to your paper which outlines your personal opinion of the effects of globalization for your product.