External Factors Influencing the Choice of Entry into International Ma

Questions: Research Proposal on External Factors Influencing the Choice of Entry into International Markets by Multi-National Companies in Australia. 1. What external factors influenced Australian-based multinational companies to choose between equity-based and non-equity based modes of entry into international market? 2. What other conventional external factors could influence other international companies from moving into the Australian market? Answers: Problem Statement Different studies have been carried out in different countries to ascertain the internal and external factors to a multinational company, which affect the choice of entry into a foreign market. Since a business could enter a foreign company using either the equity mode or the non-equity-based mode of entry, then there is need to establish the factors that influence the choice between these two(Amasuomo 2014, p.15). Currently, no studies have been carried out in Australia, to ascertain, the external factors that influenced Australian multinational companies to choose between the two modes of entry, while entering international markets. Australia has a lot of MNCs, headquartered within it and this study will target 20 of them, in order to obtain first hand information on this particular study. Therefore, this study particularly focuses on companies headquartered in Australia, an area where little studies have been done Research Questions What external factors influenced Australian-based multinational companies to choose between equity-based and non-equity based modes of entry into international market? What other conventional external factors could influence other international companies from moving into the Australian market Theory, Assumptions, Background Literature Different scholars in the world of business and international economics have delved deep into establishing the external factors that influence the choice of entry into a new region or country by multinational companies. The main modes of entry include the equity mode of entry and the non-equity modes of entry (Chanakira 2012, p1-5). Both these entries are affected by the existing companys external factors within the potential host country. Equity mode of entry involves using many resources into enter the market, while the no-equity approaches involve a minimal use of resources (Chanakira 2012, p1-5). Further, studies indicate that the equity mode of entry usually involves very high costs at the time of entry and even at the time of exit from the foreign market. On the other hand, the non-equity approach involves the use of fewer resources both at entry and during the exit phase of an MNC. The first external factor that influences the choice of the mode entry for an MNC, as noted by Amasuomo (2014, p.15), is the cultural distance between the companys home country and the foreign country to enter. The closeness between the home and host country in culture means that the two could be having a similar language, business governance norms, and industries, among other cultural characteristics. However, the larger the cultural distance that may exist between a companys home and the host country, the more the uncertainty regarding the business performance, including higher costs that will be incurred in collecting of information and in communication (Amasuomo 2014, p.15). In that connection, a company will not use the equity mode to enter, instead, it will opt to use the non-equity modes of entry where it will involves committing lower resources. However, an MNC that wants whose host country is close to the home country in terms of cultural distance, is likely to use equity mo de of entry, as there will be lesser uncertainty and similarity in business policies. According to Zhu and Quan 2011, p. 45-7), the market size and its growth in the host country is a huge determinant in the mode of entry. If the size of the market of particular goods and services in the host country is large, then a company will find it appropriate to invest heavily through equity modes in this particular country. The potential of the market to grow in the near future could also make a company be able to move into a foreign market, by investing heavily in the business (Zhu and Quan 2011, p. 45-7). A company will be ready and willing to commit more physical, financial and human resources, where the demand for their goods and services is very high. On the other hand, a multinational business will opt to use lesser resources in entering an area, where there is currently a low level of demand for its goods and services. Perhaps it is the desire to follow their customers in the foreign market. For instance, the Bank of China has its branches in more than 43 countries, to serve mostly, the Chinese citizens within these countries Zhu and Quan 2011, p. 45-7). This is a non-equity approach, as it is clear that there a smaller demand for their goods and services in these countries. Other companies could just opt for indirect export business, as one of non-equity market-entry modes. There are other factors including a countrys risk situation, to be considered in determining the entry mode. The risks in a country may include the political, social, and economic factors, which may influence the economy and thus the market for goods and services. Politically and economically unstable countries do not attract committed investments from multinational companies, when compared to those that are suitable, with healthy business policies. In this case, an MNC, will opt to use more resources to invest in a country whose security apparatus and economy can allow their long-term presence within it (Chanakira 2012, p1-5). Legal barriers are also a major concern for multinational companies considering a move into another country. Tariff and/or quota imposition on foreign products and services imported into a country, including many restrictions on trade within a country makes a company opt to use equity mode of entry (Chanakira 2012, p1-5). This is of course if the demand for go ods and service is high. This may involve a subsidiary or coming up with joint ventures with companies already operating in the potential country of entry for business. Variables and Hypotheses The variables in this study will include both independent and dependent variable. Independent variables Equity-based modes of entry into foreign markets Non-equity-based modes of entry into foreign markets Dependent Variables Legal barriers Countrys risk situation Market size and growth Cultural distance between home and host country for MNCs The hypothesis is as stated below; Variation in factors such as legal barriers, countrys risk situation, market size and the cultural distance between the host country and the home country for an MNC, determine the mode of entry for businesses into a foreign market Operational Definitions and Measurement The study will involve 20 MNCs within Australia and therefore, the researcher will visit the nearest ones for convenience, since the lack of randomization will not affect the collected data in any way. The variables will be measured quantitatively, as the responses will be tallied and their totals used to generate crucial conclusions for the study. Research Design and Methodology The researcher will use interviews and questionnaires to collect information from the above 20 companies regarding the external factors that influence choice of entry into foreign markets, and those factors that exist within Australia. Thus, the research will take a descriptive survey research design, in obtaining the variation between the choices made by the 20 different companies in entering foreign countries. The questionnaires will consist of the Lickered scale, where the company will indicate their levels of agreement, that a particular factor influences a move into a foreign market. Possible Constrains Some companies may be uncooperative and not allow the researcher to serve them with the questionnaires, and deny time for interview Since the company headquarters are situated in different towns of Australia, the researcher will incur a high cost travelling and booking appointments for the interviews. Instrumentation/Sampling The researcher will use standardized questionnaires and face-to-face interviews, to collect data. Interviews will be recorded using an audio-recorder, while the company correspondents at each of their secretariat will fill in the questionnaires. The sample population will be 20 Australian-based multi-national companies. In order to ascertain the quality of the questionnaires in terms of accuracy and make appropriate corrections, the researcher will carry out a prior trial with one of the international companies, whose responses will not be included among the 20 companies as sample. Data Analysis The collected data will be analyzed using the SPSS software, which enable the generation of the modes of central tendency. The data will be presented in terms through tables, graphs and charts and the trends indicated. Further percentages will e used to distinguish the most and the latest influential external factors external to a business that influence the mode of entry or Australian-based companies. Expected Research outcomes In regard to the external factors that influence Australian based MNCs in choosing mode of entry into foreign markets, it is likely that all the four factors were considered by the 20 companies. However, a foreign countrys risk situation would more likely be the leading in terms of percentage as a major determinant for a country to enter into a foreign market using the equity mode of entry. On the other hand, the cultural distance between home and host country is likely to influence an MNC to consider non-equity modes of entry into the foreign market. In Australia, the external factors that have attracted MNCs include political and economic stability, friendly economic policies, and lesser restrictions on international trade. Conclusions, Interpretations, Recommendations From the expected outcomes above, the hypothesis that variation in factors such as legal barriers, countrys risk situation, market size and the cultural distance between the host country and the home country for an MNC, determine the mode of entry for businesses into a foreign market is supported. My findings imply that MNCs must consider first, a countrys risk situation in terms of politics and economic policies before entering it using particularly the equity-based approach. The other factors including legal barriers, cultural distance, and the size of the market must also be considered before making any move, which could determine the future of any company, based in Australia and across the world. References Amasuomo, J. (2014). Factors Influencing Choice of Occupational Area among Technical Education Students with Differing Entry Qualifications. Mak. J. High. Edu., 6(1), p.15. Chanakira, M. (2012). Factors Affecting the Choice of Market Entry Modes in the African Telephony Industry. International Journal of Applied Behavioral Economics, 1(2), pp.1-15. Doherty, A. (2007). The internationalization of retailing. Int J of Service Industry Mgmt, 18(2), pp.184-205. Jeong, G., Chae, M. and Park, B. (2016). Reverse knowledge transfer from subsidiaries to multinational companies: Focusing on factors affecting market knowledge transfer. Can J Adm Sci, p.n/a-n/a. Schuster, T. and Holtbrgge, D. (2012). Market entry of multinational companies in markets at the bottom of the pyramid: A learning perspective. International Business Review, 21(5), pp.817-830. Zhu, M., Wang, Z. and Quan, H. (2011). A study on the key factors influencing international franchisors choice of entry modes into China. Front. Bus. Res. China, 5(1), pp.3-22.

The Billion Dollar Man Bill Gates Essays - Nerd Culture

The Billion Dollar Man: Bill Gates Ever think about paying cash for your house? How about your car? You would probably consider it if you carried that kind of cash just in your wallet. Wouldn't you? Just picture walking down to the nearest bank and saying I'd like to cash my paycheck....Oh and by the way, I need 100 million in 1000's, and the other 100 million in 100's....thanks! This is probably the norm for a man named William Henry (Bill) Gates III, who is currently the richest man in the world with over 44 billion dollars in worth. Bill Gates was born October 28, 1955 in Seattle, Washington. Bill was the only son and the middle child of William and Mary Gates. He had two sisters, Kristianne and Libby. Bill nickname growing up was "Trey" because of the "III" after his name. Bill's childhood was somewhat uneventful until his second year at Lakeside Private School, which his father insisted he attend. The school had contracted with General Electric to time-share a computer mainframe. The school received an ASR-33 type teletype machine to interact with General Electric's Mark II time sharing system. This system costed the school about $89 a month and $8 per hour for time on-line. Gates quickly ran bills in excess of $2000 a month with his friends. This great amount of time on the computer soon resulted in Bill surpassing all his teacher's knowledge about computers. With this knowledge Bill and his friends formed a group called the "Lakeside Programming Group" or LPG. It was in this group that Bill Gates would meat future co-founder of Microsoft, Paul Allen. Before starting college at Harvard University, Bill was busy figuring the costs of building a personal computer. He had seen ads in Popular Science Magazine for Intel's latest processor the "8008" which costed about $860. The computer was not complete before Bill left for college, but would later occupy a major portion of his time. After Bill's freshmen year, he got hired in the summer to work for Information Sciences Inc. (ISI), where he developed a useful payroll program that also debugged programming code. Meanwhile in his spare time Bill and Paul continued to work, eventually finishing a project, which calculated traffic on a given road called "Traf-O-Data". This was sold to the city of Seattle. Soon after this, Bill and Paul would develop a better version of BASIC for the Intel 8008 processor. Bill wanted Altair, the maker of the processor, to purchase a license for his BASIC.Since Altair wanted some additional features, Bill then brought in Ric Weiland who helped in the additional developing of the software. These changes were ready to run in July of 1975 and Micro-soft was born. Micro-soft which soon dropped the hyphen from the name, now was receiving contracts from all the big manufacturers such as Intel, Motorola, Commodore, and General Electric. These contracts resulted in Bill being to wrapped up in filling the demands that he left Harvard after finishing 6 semesters. In 1978 Microsoft moved its operations to Redmond, Washington, where it has constantly expanded its "campus". In 1980, IBM came to Microsoft to find an operating system for their new PC computer line. The two companies worked together to start the modern PC era that we know today. Bill recently married co-worker Melinda French on January 1, 1994 after a long hiatus as the richest bachelor in the world. Now he is just the richest married man in the world. Bill knew exactly what to market and how to market it. He realized what computers could do for society and utilized the idea. Overall by looking at Bill Gates road to success we can see just how determination, long hours, and hard, hard work can pay off. Bill Gates is the genius behind perhaps the most powerful private company in the world, Microsoft. By simply looking at these accurate statistics from an Internet source of mine we can see just what his genius has earned him: Tue Feb 10 20:26:43 EST 1998 Microsoft Stock Price: $159.25 Bill Gates's Wealth: $44.959500 billion U.S. Population: 269,138,380 Your Personal Contribution: $167.05 These numbers truly show how William Gates III's intense work ethic and vision makes him a role model

Writing Tips - How to Analyze the Sample Essay Prompt

Writing Tips - How to Analyze the Sample Essay PromptIn order to write a truly great essay, you must analyze the sample essay prompt. This is a method you use to determine how the writing will go. There are several reasons why you should analyze the sample essay prompts.When you analyze the sample essay prompt, you will see if you like it or not. You can do this after you have written the essay. The best way to do this is to use the free samples offered by your college's faculty.The objective is very important. It can make or break your essay. Once you have decided what the objective is, you can begin to decide how you want the essay to go. For example, you can focus on things you want the essay to cover.If you know what the essay will cover, you can focus on that and write about it in an objective. However, if you know not what the essay will cover, you will be more likely to use the objective. You must follow the objective when you use them for sample essays.If you can't think of a nything that you want to write about, you can use the idea that comes up while you are reading other essays. You can have your essay about something that pops into your head. It may just be what your teacher said in class that you were thinking about and it shows in your essay.The analysis of the sample essay prompt should consist of a few simple things. It should go as far as you can in your preparation. Many people fail because they don't know how to prepare their essays before they begin writing.After you have made the decision about what you want to talk about in your writing, you will haveto find the words that will do this. You will have to have a good plan in place that will help you figure out what words to use and how to structure your essay. There are many ways to research for your essay, and you need to learn to use them all. Even if you never use any of them, it is important to know them all so you can get a good head start.

Private Ownership of Guns essays

Private Ownership of Guns essays Topics for conversation in this report will include: Gun control assumes some fundamental things to hold true. It assumes that all people are law abiding, responsible, and well intended; we know this is not the case or their would not be a gun debate. Since the above does not hold true we have markets that will work against gun control, called Black Markets. Gun control works for the normal market, where there is a series of checks and balances to keep guns out of the hands of known criminals and people with mental disorders through background checks and waiting periods. What happens with the people that are not allowed to buy a gun because of their background? They say OK and are kept from buying guns. WRONG this is where some, not all, turn to the Black Market. The Black Market has only one check and balance, risk vs. reward. How much can be charged for a gun vs. the legal problems that can be caused for the seller and buyer. If the risk is worth the reward we have a Black Market where people can buy and sell guns without the controls of the normal market, but are under pressure of legal action if caught. The stronger the laws are restricting gun ownership in our Normal Market the more demand for Black Market guns will grow. This market shift was seen during the probation of alcohol and the resulting Black Markets for production and distribution of the contraband. We should remember the social unrest that accompanied that Black Market occurrence. The argument Polsby makes is the higher the number of victims a criminal assumes to be armed, the higher will be the risk-the price-of assaulting them. This is what I call victims vs. criminal evaluation. This creates yet another market, the one of victims. I see ...

Ytterbium Facts - Yb Element Facts

Ytterbium Facts - Yb Element Facts Ytterbium is element number 70 with an element symbol Yb. This silver-colored rare earth element is one of several elements discovered from ores from a quarry in Ytterby, Sweden. Here are interesting facts about element Yb, as well as a summary of key atomic data: Interesting Ytterbium Element Facts Like other rare earth elements, ytterbium isnt really all that rare, but it did take scientists a long time to figure out how to separate the rare earth elements from one another. During this time, it was rare to encounter them. Today, rare earths are common in everyday products, particularly in monitors and electronics.Ytterbium was one of the elements isolated from the mineral yttria. These elements derive their names from Ytterby (e.g., Yttrium, Ytterbium, Terbium, Erbium). For about 30 years, it was difficult to distinguish the elements from each other, so there was confusion about which element belonged to which name. Ytterbium went by at least four names, including ytterbium, ytterbia, erbia, and neoytterbia, when it wasnt altogether confused with another element.Credit for discovering ytterbium is shared between Jean-Charles Gallisard de Marignac, Lars Fredrik Nilson, and Georges Urbain, who identified the element over a period of several years, starting in 1787. Marignac repo rted the elemental analysis of a sample called erbia in 1878 (isolated from yttria), saying it consisted of two elements he called erbium and ytterbium. In 1879, Nilson announced Marignacs ytterbium was not a single element, but a mixture of two elements he called scandium and ytterbium. In 1907, Urbain announced Nilsons ytterbium was, in turn, a mixture of two elements, which he called ytterbium and lutetium. Relatively pure ytterbium was not isolated until 1937. A high purity specimen of the element wasnt made until 1953. Uses of ytterbium include use as a radiation source for x-ray machines. It is added to stainless steel to improve its mechanical properties. It may be added as a doping agent to fiber optic cable. It is used to make certain lasers.Ytterbium and its compounds are not normally found in the human body. They are estimated to be of low to moderate toxicity. However, ytterbium is stored and treated as if it were a highly toxic chemical. Part of the reason is that metallic ytterbium dust presents a fire hazard, evolving toxic fumes as it burns. A ytterbium fire can only be extinguished using a class D dry chemical fire extinguisher. Another risk from ytterbium is that it causes skin and eye irritation. Scientists believe some ytterbium compounds are teratogenic.Ytterbium is a bright, shiny silver metal that is ductile and malleable. The most common oxidation state of ytterbium is 3, but the 2 oxidation state also occurs (which is unusual for a lanthanide). It is more reactive than the other lanthanide elements, so it is generally stored in sealed containers to keep it from reacting with oxygen and water in air. The finely powdered metal will ignite in air. Ytterbium is the 44th most abundant element in the Earths crust. It is one of the more common rare earths, present at about 2.7 to 8 parts per million in the crust. It is common in the mineral monazite.7 natural isotopes of ytterbium occur, plus at least 27 radioactive isotopes have been observed. The most common isotope is ytterbium-174, which accounts for about 31.8 percent of the natural abundance of the element. The most stable radioisotope is ytterbium-169, which has a half-life of 32.0 days. Ytterbium also displays 12 meta states, with the most stable being ytterbium-169m, with a half life of 46 seconds. Ytterbium Element Atomic Data Element Name: Ytterbium Atomic Number: 70 Symbol: Yb Atomic Weight: 173.04 Discovery: Jean de Marignac 1878 (Switzerland) Electron Configuration: [Xe] 4f14 6s2 Element Classification: Rare Earth (Lanthanide Series) Word Origin: Named for the Swedish village of Ytterby. Density (g/cc): 6.9654 Melting Point (K): 1097 Boiling Point (K): 1466 Appearance: silvery, lustrous, malleable, and ductile metal Atomic Radius (pm): 194 Atomic Volume (cc/mol): 24.8 Ionic Radius: 85.8 (3e) 93 (2e) Specific Heat (20Â °C J/g mol): 0.145 Fusion Heat (kJ/mol): 3.35 Evaporation Heat (kJ/mol): 159 Pauling Negativity Number: 1.1 First Ionizing Energy (kJ/mol): 603 Oxidation States: 3, 2 Lattice Structure: Face-Centered Cubic Lattice Constant (Ã…): 5.490 References: Los Alamos National Laboratory (2001), Crescent Chemical Company (2001), Langes Handbook of Chemistry (1952), CRC Handbook of Chemistry Physics (18th Ed.) Return to the Periodic Table

Week 6 Discussion Questions Assignment Example | Topics and Well Written Essays - 250 words

Week 6 Discussion Questions - Assignment Example Lowering unemployment is key to improving the economy. 2. An increase in jobs alone will improve the economy somewhat. More jobs means more money in the pockets of consumers. Seeing that nearly 2/3 of all economic activity in the United States is driven by consumer purchases, this is good news. Other factors such a credit markets and government debt will affect the economy as well. These will need addressed as well as unemployment. 3. The current economic state is largely due to corrupt and unethical practices in the financial sector, specifically in home mortgage lending. Unethical lenders were profiting by lending money to individuals and families that they knew would never be able to repay. Housing starts skyrocketed because people were building homes they actually couldn’t afford. Everyone thought they could just sell their homes at some point in the near future and pay them off. The problem is the shady lending practices were exposed, the credit default swaps all came due and there wasn’t enough money to go around to pay everyone affected. The current state of the housing market is the result of these unwise

The Case of Egyptian Metal Industries (Metalco) Study

The of Egyptian Metal Industries (Metalco) - Case Study Example By employing the traditional costing method, Metalco uses only â€Å"direct labor-hours† (Information Resources Management Information, 2013, p.1432) which shows very little relationship with the accumulation of the â€Å"factory overhead costs† (Information Resources Management Information, 2013, p.1432). This results in distortion of product price and also decreases the inducements for the managers in their way of managing the product costs. It has been found that both the methods are providing different results because the volume-based method of costing uses only cost of direct labor and the method of activity-based costing (ABC) make use of various cost drivers for each activity. There is difference in the way of computing per unit cost of factory overhead under both the methods. The method of traditional costing takes only â€Å"direct labor-hours† (See Appendix 1), while ABC method activity cost driver into consideration to compute the unit overhead cost (S ee Appendix 2). The result from the traditional method shows that product COM is more profitable as compared to RES (See Appendix 3). Whereas, the result form the ABC method reflects that product RES is more profitable then COM (See Appendix 4). Therefore, it has been observed that traditional method does not provide accurate result, whereas, ABC method gives more specific result. It has been analyzed that traditional method of costing does not provide accurate result because it does not utilize activity cost drivers for analyzing the per unit overhead cost. The result which has been obtained from both the methods are different form one another. Traditional method shows that product COM is better than RES, while the ABC method provides opposite result. Metalco shifted its preference from traditional method to ABC method because it gives more accurate analysis of the product cost. The ABC method determines each activity related to producing the item as