Role of Governments in International Transactions and Global Strategy

Subject: Globalization
Pages: 10
Words: 3642
Reading time:
14 min
Study level: PhD

The government imposes a very important part in the home country’s international transactions and global strategy. The research focuses on gathering professional journals on the government’s task in the global market place is to aid the country’s multinational companies in their goal to sell their products and services around the world. The research focuses on gathering related scholarly references in terms of the marketing aspect focusing on ensuring the multinational company offers quality products and services at reasonable prices in places that are within the outstretched arms of the current and prospective customers. The research focuses on the government helping the Sydney-based multinational companies incorporate the marketing strategies in its global strategy. Indeed, the home country’ government must support its local multinational corporations in all aspects of the companies’ international ventures in exchange for tax revenues.

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Introduction

The government plays a pivotal role in the home country’s international transactions and global strategy. The research focuses on the roles of the government in terms of its local companies’ exporting of goods to the foreign countries. The research includes analysis of the effect of global marketing resources on the research. The home country’ government must support its local multinational corporations in all aspects of the multinational companies’ international ventures in exchange for tax revenues.

Government’s Optimal Role in the Global Market Place

John Dunning (1999) emphasized the optimal role of the government in relation to its economic activity focuses only on the personal ideologies, economic situation, and the enterprise milieu during that time a long time ago, especially when they had to hurdle the global issues affecting both the exporting countries and the importing countries. The government implements its responsibility to create and support resources to ensure the continuing success of its country’s export and import industry. Abele (2008) emphases the impact of the current globalization on the policy of the government focuses on the policy globalization as only a subset of the large number of big structural adjustments that the world is undergoing as part of the evolution of the corresponding group of new technologies. The new technologies referred to as information and communications technology.

Information Communications Technology

Girish Gulati (2011) reiterated since the Information Communications Technology or ICT was set into motion, the transfer of information had quadrupled. Consequently, the global marketing process focuses on enhancing the global marketing environment. The implementation of the 21st century technological advances includes many structural adjustments, including globalization. The role of the Australian government is to ensure that all economic tools and conditions are implemented by many of the structural changes to a great extent. It is hard to know what is significantly influenced by globalization and what is caused by other significant factors.

Globalisation – Maximisation of Scarce Money Resources

One major driving force of the government is globalization. In addition, John Dunning stated the national government can play a decisive role in enhancing the competitiveness of the local government’s economic activities. Marketing entails maximizing resources. The government can maximize the nation’s scarce resources (Rix, 2007). The maximization will be successful if there is a provision for the appropriate incentives for domestic firms to upgrade the quality of their ownership-specific assets; and by ensuring that the location-bound general purpose inputs (incorporating the academic buildings and communications infrastructure), necessary for these assets to be fully and efficiently utilized, are available. The IFC is a marketing based company. The marketing aspect focuses on the selling of high quality products (Bragg, 2006).

Marketing

Moses Kiggundu (2010) states the government must help its constituents to be globally Market- competitive. Marketing employees employed in one of the nation’s multinational companies. For example, a working person must adjust to and comply with Canada’s policy of global competitiveness. Chinese traders continue to expand their trade to uncharted territories due to the successful demand for their high quality products. Likewise, the Dutch government (Saab 2010) has under its own innovative wings a profitable global marketing strategy in terms of having a repetitive global remittance of money. The innovators would strengthen the company’s global marketability. Further, the world’s governments must help the multinational study and take advantage of the foreign client company’s cultures when engaging in business transactions with another county. Marketability includes advertising the company’s products. The company should advertise the countless benefits of buying the company’s products and services. For example, the Australian clients can purchase their raw materials from a suppliers located in Canada (Fisk, 2006).

Global Sales Increase

The global sales could increase if the company’s current marketing plans include the hiring of local marketing people to sell the company’s products within the foreign countries’ shores, innovative ideas that will entice the prospective clients to buy the country’s exported goods and services (Czinkota, 2007)

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To make marketing more profitable, the government should ensure that its officers can easily blend into the foreign country’s culture (anon 2011). Wendy Su (2011) emphasised the Chinese government is focused on importing old and current movies to entertain its very populous community. In addition, Xielin Liu (2010) reiterated the Chinese firms are catching up to the Japanese and South Koreans in terms of generating export revenues. Likewise, another city in Vancouver, Canada, tried to focus on global marketing strategy to fill the needs of the current and prospective clients around the world (Smith 2011). Likewise, the government’s global marketing process uses the neural network system (Sorens 2010). In terms of Taiwan’s global business environment, Yi Huang (Huang 2010) emphasized many of the Taiwanese firms have shifted to the latest green products in compliance with the global environmental protection program.

Government’s Information Technology Role

The latest government developments around the world pinpoint to the practical applications from cutting edge research that includes having government leadership as one of the keys to a successful global presence (Anon 2011). In addition, Sam Schueth (2011) reiterated the Word Bank’s Ease of Doing Business Index or EDBI shows the diverse results according to the quality of the global business regulations. The global indices indicate the presence of competitive economies. The competitive economies are grounded on the number of clients that are sometimes hard to please (Weele, 2005). Management must relate its marketing plans to the strengths, weaknesses, opportunities, and threats analysis of the branches located in a foreign country(Management, 2009) The producers of the Republic of Georgia continued to entice the global investors as well as the USAID to fund their global production programs.

Paintball

Further, the government must help its local multinational companies. In the areas of maturity and complexity of modern day globalization, the current trend will not change in significant fashion. R Rasiah (2011) espoused the firm’s changes do not significantly change by firms in terms of their strategies to manufacture and sustain major core competencies, and by governments as they try to find the best use of these competencies within their area of responsibility. In terms of marketing plans, the culture of the foreign country is an important obstacle that must be resolved in the soonest possible time (McDonald, 2007)

Different countries Influence the Other Countries in Terms of Marketing

Manuela Moschella (2011) states the difference between the British and the Italian recapitalization policy was shaped by distinctive national models of financial capitalism. Particularly, the author focuses on the variation within the recapitalization policies adopted during the 2008 accounting period. In contrast to partisan politics and regulatory competitions or expectations, the governments of many nations are continually changing; the old leaders are being replaced by younger leaders. Normally, the new leaders will bring in new innovative processes or ideas that can easily be translated into higher revenues and higher profits. The new global marketing processes focus enhancing the traditional conceptions of social justice and the public interest. Cameron’s Conservatives are ready to continue in the party’s world-focused government policies. In addition, Jason Sorens (2010) espoused global competition can include ethnic mobilization as well as bring political institutions together to impact significant changes in the government’s political and economic restraints.

In 1992 Hans Michelmann (2001) stated in Rio de Janeiro, many countries agreed to stabilize GHG emissions in order comply with the policies of the United Nations Framework Convention on Climate Change or its community (UNFCC). Despite the agreement, emissions continued to grow. In 1997, the parties to the UNFCC met again in Kyoto and made further commitments to limit and reduce GHG emissions. The domestic policies used to reduce agricultural GHG emissions are likely to affect production and (Moschella 2011) trade in many sectors.

Globalised Agriculture Environment

In addition, Hans Michelmann (2001) opined the international agricultural system is currently producing or using a vast array of crops, animals, and microbes that have been developed using new biotechnology methods or are involved input or output attributes through genetic modification. By the end of 1999 more than forty genetic modifications related to thirteen different crops were approved and produced in one of thirteen countries and to varying degrees were made available to other countries through international trade. Several countries have also approved the release of one or more varieties of genetically modified (GM) fish (e.g., salmon), trees (e.g., poplar), microbes, drugs (e.g., RBST), and various vaccines for animals to flood the global food market segment. Many organisms with new modifications await regulatory approval in various countries involved in the international food trade. The introduction of these products into the global agricultural and food system has generated significantly influential debates about two major issues: the safety of the foods made from these products, and their unfavourable effects on the local environment. The people can examine the environmental risks and the efforts to manage those risks through domestic regulation and international cooperation, although the debate around genetically modified foods often conflates the issues of food safety and environmental risk.

Globalisation – Terminology

Mansoob Murshed (2002) reiterated “by globalization” the government intends to help its multinational companies locate and serve the increasing world demand for various goods. The goods include products and services which are illegal or produced in the informal sector in the South. The people can analyse the effects of such uncomfortable global business shocks on the company’s growth and the capital stocks in a North-South macroeconomic model, along the lines of Findlay (1980). People start by outlining some stylized facts in the first section on globalization and increasing criminal activity. Then the researcher can sketch a different approach to understanding criminal, informal and shadowy activities and a discussion of the North-South model employed. In terms of analysing the North-South growth model, the North is represented by a one-sector neoclassical growth model. The South is shown to have surplus labour. An innovation of the model is that the institutionally given fixed real wage in the South is determined in the informal sector.

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Global Exchange of Goods

Likewise, Mansoob Murshed (2002) reiterated globalization involves the accelerated international exchange of goods/services, capital, labour and ideas or knowledge. It arises from the lowering of barriers to exchange combined with technological developments. The reductions of the impediments to international exchange are a result of deliberate policies pursued in the last quarter of the twentieth century. Accompanying this has been a shift in power, and even income shares, from labour to capital. Globalization may also create longer lasting unfavorable acts, such as environmental degradation or decreased national security.

Multi-fiber Agreement

There have been some carefully executed studies of the welfare impacts of some of the most-egregious northern trade barriers such as the Multi-fibre Arrangement (MFA) covering world trade in textiles and apparel. One important message of the essay is that southern countries in the aggregate are likely to gain from various northern liberalizations. Studies indicate this to be the case even for largely non-tariff barriers such as the MFA. One important message is that even though southern countries may gain in the aggregate, it need not follow from this that every individual country gains – the distribution of gains can sometimes be quite disparate within this group.

Further, both standard neoclassical growth theory and recent endogenous growth theory discuss persistent poverty in developing countries as being partly due to differences in technology between rich and poor countries. Neoclassical theory considers technology as both universally available and useful, and technological differences as gaps in the endowments of objects, such as factories or roads. By contrast, the proponents, endogenous growth theory accepts the proposition, and skills with a view to facilitating the reduction of the idea gap.

Integration of Integration of Global Economies

One of the main opportunities which globalization – the integration of national economies – includes offering or buying products, at reasonable prices shall be down fill the material needs of the developing and the developing as well as developed nations is that they will receive greater access to the technical advances in the development nations. The people of the Australia can stay within the reach of their outstretched arms the technical advances implemented in developed countries. The many advantages of integration will be put into place to lessen the technology gap and to raise the level of total factor productivity and per capita income in developing countries. As expected, the research has shown empirical data that several nations which have accepted the exports of other countries from the world’s technology leaders have experienced faster growth in total factor productivity.

Technology

The role of technology adoption in the process of economic development has been a recurrent theme in the economic literature. It highlights that the cross-country distribution of per capita income will move up over time with no change in its range if the distribution of technology adoption is constant over time, that is, all countries adopt new technology equally. To lessen the current range, the third class nations will continually need to upgrade their current technology level quicker than the technology of the industrialized nations. The cropping up of technological improvements in backward countries is closely connected to the educational cropping up of education efforts by the government. This means that their current skills can be used to influence the amount and degree of sophistication of technology which can be adopted and efficiently used, while in turn the amount and sophistication of newly introduced technology impacts on the demand for skills.

In addition, general-equilibrium welfare estimates tend to require computable general-equilibrium (CGE) models, which are quite complicated, and because results from these CGE models tend to be sensitive to key modeling assumptions, The examples to make the assumption crystal-clear include returns to scale of production technology, substitution in production, consumption, and others. There have been several carefully executed studies of the welfare impacts of some of the most-egregious northern trade barriers such as the Multi- Fibre Arrangement (MFA) covering world trade in textiles and apparel.

One important message of these studies is that southern countries in the aggregate are likely to gain from various the northern global liberalizations. Prior studies indicate this to be the case even for largely non-tariff barriers such as the MFA: even though southern countries lose quota-like rents from liberalization, these losses appear to be more than offset by pro-competitive gains from increased market access and output. A second important message is that even though southern countries may gain in the aggregate, it need not follow from this that every individual country gains – the distribution of gains may be quite disparate within this group.

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Mansoob Murshed (2002) reiterated one of the main opportunities which globalization – the integration of national economies – is said to offer to developing countries is that they would have better entry to the technical advances in developed countries. Integration would help to reduce the technology gap and to enhance the level of total factor productivity and per capita income in many developing countries.

Mansoob Murshed (2002) reiterated the role of technology adoption in the process of economic development has been a recurrent theme in the economic literature. It highlights that the cross-country distribution of per capita income will move up over time with no change in its current range if the distribution of technology adoption is constant over time. Consequently, many countries adopt the new technology on equal terms. To reduce this range, backward countries will need to upgrade their level of technology faster than the advanced countries. The realization of technological improvements in backward countries is closely interrelated with their educational attainment: their skill supply influences the amount and degree of sophistication of technology which can be adopted and efficiently used, while in turn the amount and sophistication of newly introduced technology impacts on the demand for skills.

Nature of Global Shifts

Although the term globalization is widely used to characterize the profound changes unfolding in the world, the nature of these shifts and what they mean remain debated questions. Until the 1970s, the increase in the capital had often been classified as national capital, capital with particular territorial and historical roots and character. Afterwards, capital began to expand more than ever as a simple corporation; ownership began to correspond less and less with national geographies. Just as capital once had to create a national state and a defined territory, in the form of the transnational corporation (TNC) it has had to remove or transform this ‘shell’ to create institutions to ensure and facilitate accumulation at the global level.

Globalization presents a picture of a borderless economy. A borderless economy means that a person or entity can buy or sell its products and services with companies outside Australia with ease (just by the click of the internet-based mouse). The use of yahoo messenger, skype, web camera, and email has increased business communication into a virtual office economy. Young Kihl reiterated, Sydney entered into a borderless agreement or global agreement with North Korea’s president Kim In 1985. The research represents the change of the main venue of capital accumulation from the less in area (national) to the most in area (global level). This is evidenced in the large number of Trans national Corporations that dominate world production and distribution, the pervasive trans-border operations of these corporations and the preponderance of foreign direct investment Andrew Hurrell (1999) stated Since the late 1970s, a new wave of globalization has been facilitated and stimulated by new market deregulations and economic policy liberalization, by the new microelectronics-based information and communications technologies, and by the globalization of financial markets. Globalization is driven today, as it was in earlier periods, by the dynamics of inter-firm competition in the leading economies. The principal microeconomic force shaping those dynamics, and driving globalization in the ‘real’ (non-financial) economy, is the ongoing development, formidable competitive strength, and gradual spread (despite much resistance to that spread) of post Taylorist ‘flexible’ approaches to the organization of production within and between firms — just as in the 1950s and 1960s.

Globalization is controlled by the current economic developments with emphasis on ensuring a competitive superiority in the same global market sent. The current dispensation will create a better position. The international diffusion of Taylorist or ‘scientific management’ approaches to the organization of the current wave of globalization has been allocated and accompanied by a crisis in Taylorist organizations in the leading economies – the organizations that will have to be accounted for in terms of majority output and hiring in the mentioned economies.

The government shall support the multinational companies strategically located in other parts of the world (Etzel 2001). The international marketing environment includes focusing on the quality of the product. The clients prefer high equality products because such products are generally worth the amount paid (Brown2005). In addition, the global environment company shall sell products at reasonable prices. What may be reasonable in one place may not be reasonable in another place. The reasonableness issue is based on the economic principle known as economies scale (Burkholder, 2006). In addition, the government shall help the global company in the processing of all necessary papers for the company to set up a branch in a foreign country (Etzel2001). In like manner, the company shall use variable costing or absorption costing in the preparation of the financial statements. The financial statements shall take into consideration the accounting principles prevailing in the country where each branch is located (Hilton 2007).

In terms of comprehensive analysis, the government’s entry into the global borderless economy is characterized by international trade, foreign direct investments, migration, global technology interchange, and capital flows. The government plays a vital role helping its multinational companies partake of the spoils (gains) of importation and exportation in the global economy.

Constraints to Global Economy

There are constraints to the success of the government’s task of ensuring the global business environment will be a success. First, the Sydney may focus on protectionism. Under protectionism, the nation places on incoming that’s to prevent the imported goods, especially the lower- priced competing products, from giving undue disadvantage to the local products and services. Ann Caplin (2001) reiterated Sydney started its protectionism policy in 1950s when Australia’s primary product exporters tended to cancel out the demands of the secondary industry when the Menzies gave way to the diverse demands of the production companies in Britain and Australia.

Second, the influx of imports from China and other third world countries will threaten the local business industries. The above discussion clearly shows that the improvement of the global business transactions is grounded on having a better understanding of contextual environment of global strategy formulation. The better understanding includes the above discussions.

Based on the above discussion, the government implements a very pivotal role in the home country’s international transactions and global strategy. The role of the government is to help their own multinational companies in terms of its local companies’ exporting of goods to the foreign countries. The government must incorporate the marketing strategies in its global strategy. Indeed, the home country’ government must support its local multinational corporations in all aspects of the companies’ international ventures in exchange for tax revenues.

References

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