International business Essay Example for Free

International business Essay Global or regional integrator strategy would be the dominant market player in Asia and Latin America. The aim of this strategy is to give strength the strategic relation between regions in the social political and economic sphere. It helps in encouraging economic relations through investment which will help in innovation, technological development, and competitiveness in the industries and it also helps the industry to become efficient and earn profits (Frank 2007 p98). By Asia and Latin America adopting the regional or global integrator strategy in air line and telecommunication industries, it will lead to revival of trade in the regions or globally which will result to sustained growth, creation of jobs and elimination of poverty. Regional integrator strategy leads to increased openness and major economic reforms In industries used in regional simulations the best strategies to use is regional or global integrator because industries in such integrations will be in a position to acquire the best technology and expertise which will help the Latin America Asia to provide competitive and quality services in the airline and telecom industries. For full region integration in Asia and Latin America the appropriate strategy to use is global integration because this will help the company do sell its services globally without restriction which will help the company to have increased sales and profits. Incase of high uncertainty, the appropriate strategy to use is specialist strategy which will help Asia and Latin America to specialize their airline and telecom industries in the countries that are promising and leave those with high uncertainty level of performance. Regional risks There are a number of endemic risks in Latin America and Asia. Malaria is one of the risks which is spread by the anopheles mosquito which mostly bites at night. It is mostly found in Indonesia, India, some parts of South Korea and some parts of China. In Latin America malaria is also an endemic risk and a major public health. It kills about one million people in a year and remains a threat to Asia and Latin America The other risk to the travelers in Asia and Latin America is dengue which is a viral infection vector borne disease (Andrew Peter 2000 p 121). Transmission occurs in both urban and rural areas but the highest risk is in urban areas. Cholera is an endemic risk to both Latin America and Asia. It is caused by eating or drinking food or water which is contaminated Some risks are not common in the two regions like bird flu is a risk in Asia but not in Latin America. It is caused by influenza A virus and it is a great threat to human beings. On the other hand, yellow fever is an endemic risk in Latin America but not in Asia. It is a serious haemorrhagic disease transmitted by those mosquitoes that are infected. The disease has no cure and treatment is only used for reducing the symptoms. In Latin America still Chagas disease is endemic and thirteen million people are infected. It is usually transmitted by contamination of a person who has parasite feases of a triatomite bug. Global companies should address these risks and uncertainties in Latin America and Asia by making sure the travelers are given the right vaccines and repellants before they travel to these areas with these risks and uncertainties. They should also make sure that the right preventive measures are put in place to protect the travelers. Travelers should be trained to observe health when they go to such areas in order to avoid the water borne diseases. Consumer markets in Asia and Latin America In Asia there is high increase in population which has resulted to increase in spending power thus attracting many multinational corporations. On the other hand Latino represents the largest minority in the country but it is the fastest ethnic growing group. The purchasing power is estimated to be one consumer out of every eight residents and thus companies are also targeting this market (Robles, Simon Haar 2003 p 249). In Latin America high population of the young youths is also a driving force in this consumer market and it s taken as a business opportunity. In Asia youths have a high market value though they are influenced by the western media. In Latino market high population is concentrated in the urban area which makes it easy for geographical targeting. On the other hand population in Asia is spread in urban and rural areas making it hard to target a certain area. On cultural issues in Latin America people experience different levels of tension in culture. Those with low cultural tension expose themselves to non Latino things while those with high cultural tension emphasize their culture as a unique one. In Asia there is ethnic and language differences and thus marketers and media must put this into consideration. Asians hold to their cultural roots and so their buying behaviour is affected very much by their culture. These markets can be segmented geographically, on the basis of language segmentation and on cultural basis. Paths followed from local to regional and eventually global Companies can take different paths from localization to regionalization and finally to globalization. One of the paths is by being a diversified national champion, then a narrow regional integrator, high focused broad regional champion and finally high focused multinational company (Frank2003 p249). The other path can be highly focused national champion, to highly focused narrow regional champion to highly focused broad regional champion and finally to highly focused global multinational company. The third path is diversified national champion to narrow region integrator to broad regional integrator and finally to diversified global integrator. The other path can be national specialists to narrow regional specialists to broad regional specialist and finally global specialist. Factors that dictate which paths a firm is supposed to take are the maturity of the product, whether it is a weak or strong differentiated firm, the strength of the marketing skills and also whether the firm is highly skilled or not. The other factors that also determine the regionalization and globalization of a firm include customers, regulations, infrastructure and culture. The advantages that a firm needs to develop from one level to another include, minimization of risks, innovation, making more profits and being efficient. The Latin America airline company followed the path of first being a diversified national champion, then it went to narrow regional integrator to broad regional integrator and finally to diversified global integrator. It gained high profits, became efficient and was able to adopt new skills and technology (Robles, Simon Haar 2003 p 249). The Asian airline followed the path of being a national specialist to narrow regional specialist then it moved to broad regional specialist and finally to global specialist. The Asian airline company gained some advantages like gaining high profits and being efficient due to specialization.