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MessagePosté le: Lun 11 Juin - 11:32 (2018)    Sujet du message: Rees Odhiambo Jersey Répondre en citant

Investing overseas can help a firm protect its domestic market in three different ways. The first is to establish foreign operations in countries where the firm has major clients (Ball et al. Sheldon Richardson Jersey , 61, 2006). For example, if a U.S. firm has many customers in France, establishing subsidiaries in France to service those customers will prevent competition by similar firms in France from acquiring those customers.

This strengthens the U.S. firm because they now have the opportunity to prove that they can service customers in France as well. This strategy is not very risky because the domestic firm already has customers in the foreign country. Rather than attacking the foreign market, the domestic firm is just defending itself from foreign competitors.

The second way a firm can protect its domestic market by investing overseas is to attack the foreign market in the hopes that the foreign firm will be so focused on defending its local market that it will lessen its efforts to gain customers in the domestic firm's market (Dell et al. Michael Wilhoite Jersey , 61, 2006).

For example, if Domestic Firm A sells a similar product or service as Foreign Firm B, DFA can begin operations in FFB's country in the hopes of taking away some of FFB's customers, and causing FFB to focus on keeping its own share of its domestic market. While FFB is being attacked in its own country Eddie Lacy Jersey , DFA can work on gaining more of its own domestic market away from FFB.

This technique is really one of deceptive distraction and is much riskier than the previous example because in this scenario the domestic firm must spend some resources "distracting" the foreign firm, and some resources on gaining a larger portion of its domestic market. Both of these tactics must be done at once if the plan is to succeed.

The final reason that investing overseas can strengthen a firm's domestic market has to do with costs of production. If a foreign firm can produce the same product at a lower cost than a domestic firm, and sell that product at a lower price (by exporting it) in the domestic country, then the domestic firm is at a disadvantage.

One way to become more competitive is to outsource part or all of a firm's production to the "cheaper" foreign country and continue to resell the product in the domestic firm's country (Ball et al., 61 Luke Joeckel Jersey , 2006). Outsourcing allows the domestic firm to utilize the lower production costs in the foreign country while remaining competitive in its domestic market. This strategy is also not very risky because it is lowering the firm's costs while defending its domestic market against foreign competition. Rather than spending more of its resources, the aim of this technique is to reduce costs and gain resources.

Although considered controversial, outsourcing continues to be a necessary part of staying competitive in today's globalized world. Two leading countries in the market for less expensive, quality labor are China and India. However, less expensive labor is not the only characteristic firms are looking for when deciding where to outsource services or production. "Deep technical and language skills Blair Walsh Jersey , mature vendors and supportive government policies" (BusinessWeek Online, March 20, 2007) are also key factors, all of which can be found in India. For countries like the United States, where wages are high Justin Coleman Jersey , utilizing the people and skills found in other countries and expanding to become an international firm is quickly becoming a requirement rather than a choice.

Sources:

Bell, Donald A. et al. (2006). International Business: The Challenge of Global Competition. Mc-Graw-Hill Irwin. New York, New York. P. 61.

China, India Seen Dominating Outsourcing. (March 20, 2007). BusinessWeek Online.
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A USS Boxer LHD travels at an offshore location in Goa in this October 29, 2006 file photo. MiG-29 aircraft are seen parked during a media preview on the flight deck of INS Vikramaditya, Indian Navy's aircraft carrier, anchored in the Arabian Sea off the coast of Mumbai, India Frank Clark Jersey , in this December 3, 2015 file photo.
The United States and India have held talks about conducting joint naval patrols that a U.S. defense official said could include the South China Sea, a move that would likely anger Beijing.

India and the United States have ramped up military ties in recent years, holding naval exercises in the Indian Ocean that last year involved the Japanese navy.

But the Indian navy has never carried out joint patrols with another country and a naval spokesman told Reuters there was no change in the government's policy of only joining an international military effort under the United Nations flag.

He pointed to India's refusal to be part of anti-piracy missions involving dozens of countries in the Gulf of Aden and instead carrying out its own operations there since 2008.

The U.S. defense official said the two sides had discussed joint patrols, adding that both were hopeful of launching them within the year. The patrols would likely be in the Indian Ocean where the Indian navy is a major player as well as the South China Sea Rees Odhiambo Jersey , the official told Reuters in New Delhi on condition of anonymity.

The official gave no details on the scale of the proposed patrols.

There was no immediate comment from China, which is on a week-long holiday for Chinese New Year.

China accused Washington this month of seeking maritime hegemony in the name of freedom of navigation after a U.S. Navy destroyer sailed within 12 nautical miles of a disputed island in the South China Sea in late January.

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