Examine the ways in which the relationship between the public and the police is presented in this extract and elsewhere in the play

In Murmuring Judges, the second play in Hare’s trilogy which examines institutions, Hare presents the relationship between the police and the public as one of mutual dislike. Interestingly, Hare never openly shows the public to dislike the lawyers, who act as the antagonist throughout the play due to their uncaring attitude towards client, but it is omnipresent towards the police, who are shown to be more in touch with people. Here, Hare is perhaps consciously suggesting that the people dislike the police as they are the ‘face of justice’ and thus perceived by the public to be the ‘enemy’. Although Hare does present the police to hold some racist and prejudiced views, showing they clearly aren’t perfect, he does largely present the police in both Murmuring Judges and his research book Asking Around as trying to do a hard job in difficult times. From our first introduction to the police, we see they are instantly disliked by the public. In Act 1 Scene 3, the first to involve the police, Keith states â€Å"you’re all bloody bastards† which immediately creates sympathy from the audience for the police. This sympathy is increased throughout the novel, where Hare generally presents the police as good people, an example of which is Sandra, who is shown as trying to enforce justice fairly in a corrupt system. The public dislike for the police is shown to be mutual though, â€Å"I’m not sure I care for the public that much†, which highlights the police frustration at the difficulty of their job, which is shown to be exacerbated by non-cooperative suspects, as shown through Keith’s repetition of â€Å"I’m not saying anything†. This furthers sympathy towards the police, as the public perception and the audience’s perception seem to be very different, as at this point in the play the police are presented as entirely honest. Dislike for the police is also shown later in the play, â€Å"I bloody hate the sodding police†, but here the police are shown to have grown more tired of the public and are more irritated, â€Å"do you have any idea, you stupid arsehole, how bloody boring it is for us? However, the public only further underlying frustration, as the Criminal Evidence Act of 1981 made policing more about paperwork, which created frustration amongst the police as for them it lowered their ability to do their jobs. In Asking Around, Hare states â€Å"[the police] are used to doing a great deal of good for the community and they’re used to having it thrown back in their face†. This could explain the police’s frustration at the public and also their seeming lack of interest in their jobs, as they no longer have the incentive to help those who hate them. Read also Intro to Public Relations Notes The police are shown to become more frustrated as the play progress, although the time period is unknown, could suggest that more and more acts were continually introduced. However, Hare continues to present the police as ‘the good guys’, as he shows Lester to be â€Å"only interested in protecting the public†, which reinforces the idea that police frustration largely stems from the public. Despite the public perception of the police as â€Å"tossers†, the police are wholly presented as the most in touch with people and the most realistic, â€Å"what we’re talking about here is reality†. This is best shown in the juxtaposition of the lawyers and the police’s view of public interest. Whereas Sir Peter believes â€Å"everyone listens to Desert Island Disks†, which the is obviously untrue, as this is a largely middle class radio station and shows the lawyers to be completely out of touch with the public, Lester states â€Å"I’d rather be in bed with Michelle Pfeiffer. † This is a much more relatable statement for the public, as it is likely that there is a larger proportion of people who would rather be in bed with Michelle than there is who listen to Desert Island Disks. Through this direct contrast, Hare shows the lawyers to be dated whereas the police are presented as realistic, and with the same manner and feelings as the public, which can be exemplified by the sarcastic tone from Lester towards the clients, â€Å"go and stand up there next to him, it makes no difference to me†. The extent of the police’s involvement with the public is shown starkly when Barry confronts Irina and asks â€Å"when was the last time anyone was sick on your wig? The mocking tone suggests is frustration at the public and the image of the public vomiting on the police shows them to be obviously more in touch with the public than the lawyers. Contextually, however, the public distrust of the police is understandable, as cases like the Guilford four and the Birmingham Six highlighted police corruption and showed the police to be immoral, as Barry is shown to be here. Perhaps the worst relationships presented between the police and the public are those which highlight the racist and generally prejudiced attitudes of the police at the time. Barry suggests that Gerard is more likely to be guilty as â€Å"he was kind of Irish†, which shows an innate prejudice, as he assumes that his nationality makes him more likely to commit crime. Significantly, Hare presents the public as aware of this racism through Jason, who is black, as he states â€Å"if you go through with this†¦I’m going to get a bobble hat and grow bloody dreadlocks. † Here, it is suggested that the police are inherently racist, as Jason implies that he was arrested simply because he was black, showing he too believes the police are racist. Although here it is a matter of justice, rather than racism, in the focus scene Hare does present the police as prejudiced. Through Lester’s statement, â€Å"I hate immigration†¦and bloody women†, Hare presents the police as prejudiced, which could arguably suggest why they are so disliked by the public as this shows them to be unjust. Just as the public are shown to be aware of racism within the police, sexism is also obvious as Sandra says â€Å"just ask the boys, all women are naggers†. However, I believe this may have been inherent and gone unnoticed by the police, as perfectly summed up in the line â€Å"they don’t know they’re prejudiced†, as the play was written in 1991, when racism and sexism were seen as everyday occurrences. Hare describes the police as â€Å"the people trying to keep their sense of humour in the face of massive contradictions†. This is evident in the relationship between the police and the public, as the police generally use a light tone and humorous phrases, which suggests the police would like to get along with the public, but they make this impossible. This is strengthened by Hare’s presentation of the public, as they are shown to be non-cooperative or â€Å"grovelling†. In contrast, Hare occasionally presents the police as prejudiced and disinterested in their jobs, which undermines the police-public relationship, but it is largely obvious that Hare blames the public for the poor public relations as the police are largely just attempting to do their job in difficult circumstances, which is only worsened by the public perception of them as unjust and prejudiced.

Question Bank International Business Essay

Chapter 07 Foreign Direct Investment True / False Questions 1. (p. 242) A firm becomes a multinational enterprise when it undertakes foreign direct investment. TRUE 2. (p. 242) Licensing involves the establishment of a new operation in a foreign country. FALSE 3. (p. 242) If a firm that makes bicycles in Germany acquires a French bicycle producer, Greenfield investment has taken place. FALSE 4. (p. 242) The amount of FDI undertaken over a given time period is known as the flow of FDI. TRUE 5. (p. 242) The total accumulated value of foreign-owned assets at a given time is the inflow of FDI. FALSE 6. (p. 242) FDI is seen by executives as a means of circumventing future trade barriers. TRUE 7. (p. 244) Historically, most FDI has been directed at the developed nations of the world as firms based in advanced countries invested in the others’ markets. TRUE 8. (p. 246) The total amount of capital invested in factories, stores, office buildings and the like is referred to as the stock of FDI. FALSE 9. (p. 246) The largest source country for FDI has been China. FALSE 10. (p. 247) About 27 percent of the world’s largest 100 nonfinancial multinationals in 2004 were American companies. TRUE 11. (p. 247) In developing countries, about one third of FDI is in the form of mergers and acquisitions. TRUE 12. (p. 248) In 2004, about two thirds of FDI stock was in service industries. TRUE 13. (p. 249) As compared to exporting and licensing, FDI is the more expensive and risky. TRUE 14. (p. 250) Internalization theory is also known as the market imperfections approach. TRUE 15. (p. 250) One of the problems of licensing is that it may result in a firm’s giving away valuable technological know-how to a potential foreign competitor. TRUE 16. (p. 251) An oligopoly is an industry composed of a limited number of large firms. TRUE 17. (p. 252) When two or more enterprises encounter each other in different regional markets, national markets or industries regional competition occurs. FALSE 18. (p. 252) According to Vernon, location specific advantages can help explain the nature and direction of FDI. FALSE 19. (p. 253) Dunning, in the eclectic paradigm theory, suggests that a firm must establish production facilities where foreign assets or resource endowments necessary to the production of the product exist. TRUE 20. (p. 254) Pragmatic nationalism traces its roots to Marxist political and economic theory. FALSE 21. (p. 254) Classical economics and the international trade theories of Adam Smith and David Ricardo form the basis for the free market view. TRUE 22. (p. 255) The free market view argues that FDI is a benefit to both the source country and to the host country. TRUE 23. (p. 255) Countries adopting a pragmatic stance pursue policies designed to maximize the national benefits and minimize the national costs. TRUE 24. (p. 256) An aspect of pragmatic nationalism is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants. TRUE 25. (p. 257) Foreign direct investment can make a positive contribution to a host economy by supplying capital, technology and management resources that would otherwise not be available and thus boost that country’s economic growth rate. TRUE 26. (p. 258) There is research supporting the view that multinational firms often transfer significant technology when they invest in a foreign country. TRUE 27. (p. 258) Jobs created in local suppliers as a result of the MNE’s investment and jobs created because of increased local spending by employees of the MNE are examples of direct employment effects of FDI. FALSE 28. (p. 258) Host country citizens that are employed by an MNE following an FDI are an example of an indirect effect of FDI. FALSE 29. (p. 259) A country’s balance of payments accounts keep track of both its payments to and its receipts from other countries. TRUE 30. (p. 259) A current account deficit exists when a country imports more than it exports. TRUE 31. (p. 259) In recent years, the U.S. has run a persistent balance of payments surplus. FALSE 32. (p. 260) Host governments sometimes worry that the subsidiaries of foreign MNEs may have greater economic power than indigenous competitors. TRUE 33. (p. 261) FDI does not benefit the host country’s balance of payments if the foreign subsidiary creates demand for home-country exports of capital equipment, intermediate goods or complementary products. FALSE 34. (p. 262) The term offshore production refers to FDI undertaken to serve the home market. TRUE 35. (p. 263) Countries cannot prohibit national firms from investing in certain countries for political reasons. FALSE 36. (p. 264) The two most common methods of restricting inward FDI are ownership restraints and performance requirements. TRUE 37. (p. 265) The WTO has been very successful in efforts to initiate talks aimed at establishing a universal set of rules designed to promote the liberalization of FDI. FALSE 38. (p. 266) Licensing is a good option for firms in high-tech industries where protecting firm-specific expertise is of paramount importance. FALSE 39. (p. 266-267) Typically licensing will be a common strategy in oligopolies where competitive interdependence requires that multinational firms maintain tight control over foreign operations so that they have the ability to launch coordinated attacks against their global competitors. FALSE 40. (p. 267) Licensing is more common in fragmented, low-tech industries in which globally dispersed manufacturing is not an option. TRUE Multiple Choice Questions 41. (p. 242) FDI occurs when a A. Domestic firm imports products and services from another country B. Firm ships its product from one country to another C. Firm invests in the stock of another company D. Firm invests directly in facilities to produce and/or market a product in a foreign country 42. (p. 242) A Greenfield investment A. Is a form of FDI that involves the establishment of a new operation in a foreign country B. Involves a 7 percent stock in an acquired foreign business entity C. Involves a merger with a foreign business D. Occurs when a firm acquires another company in a foreign countr 43. (p. 242) If General Electric, a U.S. based corporation, purchased a 50% interest in a company in Italy, that purchase would be an example of a(n) A. Minority acquisition B. Outright stake C. Majority acquisition D. Greenfield investment 44. (p. 242) The amount of FDI undertaken over a given time period is A. The flow of FDI B. The stock of FDI C. The FDI outflow D. The FDI inflow 45. (p. 242) The stock of FDI is A. The amount of FDI undertaken over a given period of time B. The total accumulated value of foreign owned assets at a given time C. The flow of FDI out of a country D. The flow of FDI into a country 46. (p. 242) FDI has been rising for all of the following reasons, except A. The globalization of the world economy B. The general increase in trade barriers over the past 30 years C. Firms are trying to circumvent trade barriers D. There is a shift toward democratic political institutions and free market economies 47. (p. 244) Historically, most FDI has been directed at the _____ nations of the world as firms based in advanced countries invested in A. Underdeveloped, underdeveloped countries B. Developed, underdeveloped countries C. Developed, each other’s markets D. Underdeveloped, each other’s markets 48. (p. 244) The U.S. has been an attractive target for FDI because of all of the following reasons, except A. Its small and wealthy domestic markets B. Its dynamic and stable economy C. Its favorable political environment D. Its openness to FDI 49. (p. 244) Identify the incorrect statement regarding the direction of FDI. A. Historically, most FDI has been directed at the developing nations of the world B. During the 1980s and 1990s, the United States was often the favorite target for FDI inflows C. The developed nations of the EU have received significant FDI inflows D. Recent inflows into developing nations have been targeted at the emerging economies of South, East and Southeast Asia 50. (p. 246) Africa is not a popular destination for FDI because of all of the following reasons, except A. Political unrest in the region B. Armed conflict in the region C. Liberalization of FDI regulations D. Frequent policy changes in the region 51. (p. 246) The total amount of capital invested in factories, stores, office buildings and the like is summarized by A. Gross fixed capital formation B. Total investment capital C. Total tangible investment D. Gross depreciable investments 52. (p. 246) The largest source country for FDI since World War II has been A. Japan B. China C. The United States D. The United Kingdom 53. (p. 247) Most cross-border investment is A. In the form of Greenfield investments B. Made via mergers and acquisitions C. Between American and Japanese companies D. Involved in building new facilities 54. (p. 247) Which of the following is not a reason why firms prefer to acquire existing assets rather than undertake green-field investments? A. Foreign firms are acquired because those firms have valuable strategic assets B. Firms make acquisitions because they believe they can increase the efficiency of the acquired unit by transferring capital, technology or management skills C. Even though Greenfield investments are comparatively less risky for a firm acquisitions always yield higher profits D. Mergers and acquisitions are quicker to execute than green-field investments 55. (p. 247) In developing nations most FDI inflows are in the form of A. Mergers B. Greenfield investments C. Acquisitions D. Non-profit organizations 56. (p. 248) The sector composition of FDI shows that by 2004 approximately _____ of FDI stock was in service industries. A. One fourth B. One third C. Two third D. Half 57. (p. 248) The rise in FDI in the services sector is a result of all of the following, except A. The general move in many developed countries away from manufacturing and toward services B. Accelerating regulations of services C. Many services cannot be traded internationally D. Many countries have liberalized their regimes governing FDI in services 58. (p. 248) When strategic assets such as brand loyalty, customer relationships or distribution systems are important, _____ investments are more appropriate. A. Merger and acquisition B. Greenfield C. Portfolio D. New construction 59. (p. 249) _____ involves granting a foreign entity the right to produce and sell the firm’s product in return for a royalty fee on every unit sold. A. Horizontal FDI B. Licensing C. Vertical FDI D. Greenfield investment 60. (p. 249) In a licensing arrangement, the _____ bears the risk and cost of opening a foreign market. A. Licensee B. Licensor C. Acquiring firm D. Greenfield investor 61. (p. 250) Identify the theory that seeks to explain why firms often prefer foreign direct investment over licensing as a strategy for entering foreign markets. A. Internalization theory B. Internationalization theory C. Perfect markets theory D. Small markets theory 62. (p. 250) According to the internalization theory, all of the following are drawbacks of licensing as a strategy for exploiting foreign market opportunities, except A. Licensing does not grant control over manufacturing, marketing and to a licensee in return for a royalty fee B. Licensing may result in a firm’s giving away its know-how to a potential foreign competitor C. Licensing does not give the firm the tight control over manufacturing, marketing and strategy that may be required to profitably exploit its advantage D. A firms capabilities such as the management, marketing and manufacturing are often not amenable to licensing 63. (p. 250) ______ is also known as market imperfections theory. A. Internationalization theory B. Internalization theory C. Perfect markets theory D. Small markets theory 64. (p. 251) If four firms control 80 percent of a domestic market, then ______ exists. A. An oligopoly B. A monopoly C. An oligarchy D. Vertical integration 65. (p. 251) According to Knickerbocker A. The firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in a foreign market B. When a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments C. Combining location-specific assets or resource endowments and the firm’s own unique assets often requires FDI D. Impediments to the sale of know-how increase the profitability of FDI relative to licensing 66. (p. 252) The eclectic paradigm was developed by A. F. T. Knickerbocker B. Adam Smith C. Raymond Vernon D. John Dunning 67. (p. 252) When two or more enterprises encounter each other in different regional markets, national markets or industries, there is A. Vertical integration B. Horizontal integration C. Multipoint competition D. Monopolistic competition 68. (p. 252) The product life cycle suggests that A. Often the same firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in foreign markets B. When a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments C. Combining location-specific assets or resource endowments and the firm’s own unique assets often requires FDI D. Impediments to the sale of know-how increase the profitability of FDI relative to licensing 69. (p. 253) The _____ suggests that a firm will establish production facilities where foreign assets or resource endowments that are important to the firm are located. A. Product life cycle B. Strategic behavior theory C. Multipoint competition theory D. Eclectic paradigm 70. (p. 253) Advantages that arise from using resource endowments or assets that are tied to a particular location and that a firm finds valuable to combine with its own unique assets are known as A. Location specific advantages B. Resource specific advantages C. Competitive advantages D. Directional advantages 71. (p. 253) John Dunning, a champion of the eclectic paradigm, argues that A. The firms that pioneer a product in their home markets undertake FDI to produce a product for consumption in a foreign market B. When a firm that is part of an oligopolistic industry expands into a foreign market, other firms in the industry will be compelled to make similar investments C. Combining location-specific assets or resource endowments and the firm’s own unique assets often requires FDI D. Impediments to the sale of know-how increase the profitability of FDI relative to licensing 72. (p. 254) According to the _____ view of FDI, MNEs extract profits from the host country and take them to their home country, giving nothing of value to the host country in exchange. A. Imperialist B. Conservative C. Free market D. Radical 73. (p. 254) Which of the following is not a reason that the radical position of MNEs was in retreat by the end of the 1980s? A. The strong economic performance of those developing countries that embraced capitalism rather than radical ideology B. The collapse of communism in Eastern Europe C. The generally abysmal economic performance of those countries that embraced the radical position D. A growing belief in many capitalist countries that MNE’s tightly controls key technology and that important jobs in the MNEs’ foreign subsidiaries go to home-country nationals 74. (p. 255) According to _____ international production should be distributed among countries according to the theory of comparative advantage. A. The radical view B. The eclectic view C. Pragmatic nationalism D. The free market view 75. (p. 256) A distinctive aspect of _____ is the tendency to aggressively court FDI believed to be in the national interest by, for example, offering subsidies to foreign MNEs in the form of tax breaks or grants. A. The dogmatic view B. Pragmatic nationalism C. The radical view D. The conservative view 76. (p. 257) When a company brings capital and/or technology to a host country, the host country benefits from the A. Competitive effect of FDI B. The resource transfer effect of FDI C. The balance of payments effect of FDI D. The effect on competition and economic growth 77. (p. 258) When jobs are created in local suppliers as a result of the FDI and when jobs are created because of increased local spending by employees of the MNE, the MNE has a _____ effect on employment. A. Direct B. Indirect C. Inward D. Outward 78. (p. 259) A _____ keeps track of a country’s payments to and its receipts from other countries. A. Federal payments ledger B. Current accounting system C. Checks and balances account D. Balance of payments account 79. (p. 259) The _____ tracks the export and import of goods and services. A current account deficit or trade deficit as it is often called, arises when a country is importing more goods and services than it is exporting. A. Current account B. Debit account C. Surplus account D. Capital account 80. (p. 261) Three costs of FDI concerns of host countries arise from all of the following except A. Adverse effects on competition within the host nation B. Adverse effects on the balance of payments C. The perceived loss of national sovereignty and autonomy D. Debit on the current account of the home country’s balance of payments 81. (p. 262) FDI undertaken to serve the home market is known as A. Greenfield investment B. FDI substitution C. Offshore production D. Home market FDI 82. (p. 263) Double taxation is A. Charging double taxes in the home country B. Charging double taxes in the host country C. Taxation of income in both home and host country D. Paying income taxes at twice the normal rate 83. (p. 264) _____ are controls over the behavior of the MNE’s local subsidiary. A. Performance requirements B. Ownership restraints C. Double taxation laws D. Greenfield restrictions 84. (p. 267) Licensing would be a good option for firms in which of the following industries? A. High-technology industries in which protecting firm-specific expertise is of paramount importance and licensing is hazardous B. Global oligopolies, in which competitive interdependence requires that multinational firms maintain tight control over foreign operations C. Industries in which intense cost pressures require that multinational firms maintain tight control over foreign operations D. In fragmented, low technology industries in which globally dispersed manufacturing is not an option 85. (p. 267) _____ is essentially the service industry version of licensing, although it normally involves much longer term commitments. A. Franchising B. Subsidizing C. Greenfield investment D. Patenting Essay Questions 86. (p. 242) Discuss the connection between foreign direct investment and multinational enterprises? Foreign direct investment (FDI) occurs when a firm invests directly in new facilities to produce and/or market a product in a foreign country. The U.S. Department of Commerce states that FDI occurs whenever a U.S. citizen, organization or affiliated group takes an interest of 10 percent or more in a foreign business entity. Once affirm undertakes FDI, it becomes a multinational enterprise. 87. (p. 242) What are the two forms of foreign direct investment? The two forms of FDI are Greenfield investment or establishing a new operation in a foreign country and mergers and acquisitions whereby a company expands internationally through an existing firm. Acquisitions can be minority, majority or a 100% ownership position. 88. (p. 242) Discuss the trends in FDI over the last 30 years. Be sure to differentiate between the stock of FDI and the flow if FDI. The flow of FDI refers to the amount of FDI undertaken over a given period, while the stock of FDI refers to the total accumulated value of foreign-owned assets at a given time. Over the last 30 years there has been a marked increase in both the flow and the stock of FDI in the world economy. Over this period, the flow of FDI accelerated faster than the growth in world trade and world output. 89. (p. 242) Discuss the reasons for the growth in FDI over the last 30 years. FDI has grown more rapidly than world trade and world output for several reasons. First, many companies see FDI as a means of circumventing potential trade barriers. Second, political and economic changes in many of the world developing nations has been encouraging FDI. Finally, the globalization of the world economy is having a positive impact on the volume of FDI as firms now see the whole world as their market. 90. (p. 242-248) What is a Greenfield investment? How does it compare to an acquisition? Which form of FDI is a firm more likely choose? Explain your answer. FDI can take the form of a Greenfield investment in a new facility or an acquisition of or a merger with an existing local firm. Research show s that most FDI takes the form of mergers and acquisitions rather than Greenfield investment. Mergers and acquisitions are more popular for three reasons. First, mergers and acquisitions are quicker to execute than Greenfield investments. Second, foreign firms are acquired because those firms have valuable strategic assets. Third, firms make acquisitions because they believe they can increase the efficiency of the acquired firm by transferring capital, technology or management skills. 91. (p. 248) Discuss the shift in FDI from manufacturing to services. What is driving the trend? Over the last twenty years, the sector composition of FDI has shifted from extractive industries and manufacturing toward services. By 2004, some 66 percent of the stock of FDI was in services. Four factors are driving the shift to services. First, the shift reflects the general move in many developed economies away from manufacturing and toward service industries. Second, many services cannot be traded internationally and FDI is a principal was to bring services to foreign markets. Third, many count ries have liberalized their regimes governing FDI in services making the option more attractive to firms. Finally, the rise of Internet-based global telecommunications networks has allowed some service enterprises to relocate some of their value creation activities to different nations to take advantage of favorable factor costs. 92. (p. 249) Consider why firms selling products with low value-to-weight ratios choose FDI over exporting. Products with low value-to-weight ratios such as soft drinks or cement are frequently produced in the market where they are consumed. When transportation costs are added to production costs, it becomes unprofitable to shift such products over a long distance. For firms that can produce low value-to-weight products at almost any location the attractiveness of exporting decreases and FDI or licensing becomes more appealing. 93. (p. 250) Discuss the market imperfections explanation of FDI. What is its relationship with internalization theory? Market imperfections or factors that inhibit markets from working perfectly, provide a major explanation of why firms prefer FDI to either exporting or licensing. In the international business literature, the marketing imperfections approach is referred to as internalization theory. According to the theory, FDI will be preferred when there are impediments that make both exporting and the sale of know-how difficult and/or expensive. 94. (p. 250) What is licensing? How does it work? Licensing occurs when a domestic firm, the licensor, licenses to a foreign firm, the licensee, the right to produce its product, to use its production processes or to use its brand name or trademark. In return, the licensor collects royalty fees on every unit the licensee sells or on total licensee revenues. The licensor also benefits from the arrangement in that the licensee bears the cost and risk of expanding into a foreign market. 95. (p. 250) Compare and contrast the advantages of foreign direct investment over exporting and licensing. A firm will favor foreign direct investment over exporting as an entry strategy when transportation costs or trade barriers make exporting unattractive. Furthermore, the firm will favor foreign direct investment over licensing (or franchising) when it wishes to maintain control over its technological know-how or over its operations and business strategy or when the firm’s capabilities are simply not amenable to licensing, as may often be th e case. 96. (p. 251) Consider the notion that FDI flows are a reflection of strategic rivalry between firms in the global marketplace. What is the main limitation of the theory? The strategic behavior approach to explain FDI was initially expounded by Knickerbockers who argued that in an oliogopolistic industry, a â€Å"follow the leader† mentality will prompt firms to pursue FDI when another firm in the industry  has already done so. However, the theory fails to explain why the first firm decided to undertake FDI, rather than export or license. 97. (p. 252) What is multipoint competition? How do firms respond to multipoint competition? Multipoint competition arises when two or more enterprises encounter each other in different regional markets, national markets or industries. Economic theory suggests that firms will try to match each other’s moves in different markets to try to hold each other in check. If a firm is successful with this strategy, the firm will ensure that a rival does not take a commanding position in one market and then use the profits generated in that market to underwrite competitive attacks in other markets. 98. (p. 252) Explain the product life cycle theory and its connection with FDI. The product life cycle theory, developed by Ray Vernon, suggests that the same firms that pioneer a product in their home country will undertake FDI to produce a product for consumption in foreign markets. According to the theory, firms will invest in industrialized countries when demand in those countries is sufficient to sup port local production. They subsequently shift production to developing countries when product standardization and market saturation give rise to price competition and cost pressures. Investment in developing countries, where labor costs are lower is seen as the best way to reduce costs. 99. (p. 252-253) What are location-specific advantages? How do they help explain FDI? Location specific advantages are advantages that arise from using resource endowments or assets that are tied to a particular foreign location and that a firm finds valuable to combine with its own unique assets. Natural resources such as oil and minerals for example, are specific to certain locations. Firms must undertake FDI to exploit such foreign resources. 100. (p. 253) Explain John Dunning’s position on FDI. What is the eclectic paradigm? John Dunning has argued that to fully understand FDI it is important to consider the role of location specific advantages. According to Dunning, a firm will be prompted to undertake FDI in an effort to exploit assets that are specific to a particular location. Dunning’s theory, the eclectic paradigm, combines the arguments of internalization theory with the notion of location-specific advantages to suggest that combining location-specific assets or resource endowments and the firm’s own unique capabilities often requires the firm to establish production facilities where the foreign assets or resource endowments are  located. 101. (p. 254-256) Discuss the various political ideologies and their impact on foreign direct investment. The radical view writers argue that the multinational enterprise (MNE) is an instrument of imperialist domination. The free market view argues that international production should be distributed among countries according to the theory of comparative advantage. The pragmatic nationalist view is that FDI has both benefits and costs. The radical view has a dogmatic radical stance that is hostile to all inward FDI The free market view is at the other extreme and based on noninterventionist principle of free market economics. Between these two extremes is an approach called pragmatic nationalism. 102. (p. 257-262) Discuss the benefits and costs of FDI from the perspective of a host country and from the perspective of the home country. The main benefits of inward FDI for a host country arise from resource-transfer effects, employment effects, balance-of-payments effects and effects on competition and economic growth. Three costs of FDI concern host countries. They arise from possible adverse effects on competition within the host nation, adverse effects on the balance of payments and the perceived loss of national sovereignty and autonomy. The benefits of FDI to the home (source) country arise from three sources. First, the home country’s balance of payments benefits from the inward flow of foreign earnings. Second, benefits to the home country from outward FDI arise from employment effects. Third, benefits arise when the home-country MNE learns valuable skills from its exposure to foreign markets that can subsequently be transferred back to the home country. The most important cost/concern of FDI for the home country centers on the balance-of-payments and employment effects of outward FDI. 103. (p. 266-267) Describe the situations when licensing is not a good option for a firm. Licensing is not a good option in three situations. First, licensing is hazardous in high-tech industries where protecting firm-specific expertise is very important. Second, licensing is not attractive in global oligopolies where tight control is necessary so that firms have the ability to launch coordinated attacks against global competitors. Finally, in industries where intense cost pressures require that MNEs maintain tight control over foreign operations, licensing is not the best option. 104. (p. 267) What is franchising? What type of firm uses franchising as a means of expanding into foreign markets? Franchising is essentially the service-industry version of licensing. With franchising, the firm licenses its brand name to a foreign firm in return for a percentage of the franchisee’s profits. The franchising contract specifies the conditions that the franchisee must fulfill if it is to use the franchisor’s brand name. Franchise agreements usually have a longer time commitment than do licensing arrangements. Franchising is common in the fast food industry because fast food cannot be exported, because franchising minimizes the costs and risks associated with opening a foreign market, because brand names are relatively easy to protect, because there is no compelling reason for a firm to have tight control over franchisees and because fast food know-how is easily transferred. 105. (p. 267) How useful are the product life cycle theory and Knickerbocker’s theory of horizontal FDI to business? The product life cycle theory and Knickerbocker’s theory of horizontal FDI to business are not particularly useful from a business perspective because the theories are descriptive rather than analytical. The theories are useful for explaining historical patterns of FDI, but they do a poor job of identifying the factors that influence the relative probability of FDI, licensing and exporting.

The Book That Caught My Eye Was Freakonomics A Rogue...

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Terrorism Is Motivated By Fear - 1599 Words

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Essay about Biodiversity Is Biomedicine Necessary

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Suzuki Media Plan

Background Suzuki began operations 105 years ago by producing weaving looms to the silk industry in Japan. Twenty years later, Michio Suzuki had to patent his products to prevent replication. During this period, he managed to protect over 120 machineries and exported most of his inventions to other countries. Since the 1900’s Suzuki has improved its innovations through a careful study of the market.Advertising We will write a custom report sample on Suzuki Media Plan specifically for you for only $16.05 $11/page Learn More The company came up with the first trail car in 1937 (Global Suzuki, n.d.). Suzuki made huge sales until the beginning of WWI when the Japanese government deterred citizens from owning personal cars following the heavy traffic they caused. By 1951, the company embarked on full production of weaving looms, but one year later, the cotton industry collapsed causing major losses for Suzuki. It forced the company to develop products that would ease traffic in Japan. Most companies began producing bicycles, and Suzuki took the opportunity to develop motorcycles. Suzuki brand positioned itself through originality. It ensured development of unrivaled products while improving their innovations annually. Suzuki mostly targeted the middle-income civilians who needed small, comfortable, and cost effective locomotives. In 2011, Suzuki assumed the 10th position among multinationals dealing in the manufacture, assembly, and sale of automobiles. In 2013, Japan Automobile Manufacturers Association (JAMA) rated Suzuki, as the country’s second greatest producer and distributor of automobiles (Global Suzuki, n.d.). Suzuki’s ownership is a family affair considering that its current Chief Executive Officer is Osamu Suzuki. Suzuki’s venture into small cars including the Maruti 800 was its marketing strategy for developing countries especially India, Uruguay, and Latin American States. Marketing The 4Ps of ma rketing include product, price, promotion, and place. They influence the brand position of an organization in the target market. Product In 1955, Suzuki focused on the production of motor vehicles that had a fuel capacity of between 36cc to 300cc. Today, the company vehicles have a fuel capacity that goes beyond 950cc. Suzuki Suzulight was the first innovation with a 36cc capacity. The company manufactured it in order to fulfill the growing demand for automobiles following the conclusion of WWI.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More For an affluent market, Suzuki mostly offers the guzzlers and SUVs (Global Suzuki, n.d.). In Latin America, Suzuki seeks to take a similar approach, as the Indian market. It will introduce Maruti 800 since the Latin American market seeks affordable products that are easy to maintain. In addition, Suzuki India provides all the spare parts needed for th e Maruti to function. Price Suzuki will import both second hand and new Maruti 800 to the target Latino market. A brand new Maruti will cost between $8823 and $8430 (Global Suzuki, n.d.). On the other hand, a second hand vehicle will cost a Latino between $5924 and $6100. Many factors will determine the variations in pricing including the consumers’ bargaining power. Other determinants will include political stability, technological development, and economic position of Latin America. Recession is a likely economic impediment to reduction in prices of the Maruti’s. This company targets audiences with different products and prices. Small cars are on a high demand because of their high speed, low fuel consumption, and affordability. It would be the best idea to introduce Maruti 800 into the market that highly demands these products. Place Suzuki’s location in over 20 countries across the world signifies its strong presence in Europe and the Americas. Besides, it h as branches in India and Uruguay making it possible to provide services to the North American market. India’s Suzuki Corporation majorly manufactures the Maruti 800 making it possible to supply the Latin American market with these products (Global Suzuki, n.d.). Maruti manufacturers create it for hectic tasks even though it cannot carry heavy materials. It has the ability to maneuver through rocky areas, as it uses limited fuel and can access both urban and suburban areas. In Latin America, Suzuki will supply Maruti 800 in Brazil, Uruguay, and El Salvador, including other areas of Latin America. The Maruti 800 serves terrains in Africa and India; there are high possibilities that it will serve Latin American States properly. Promotion Promotion refers to short-term incentives that seek to improve sales. Suzuki has been supporting sporting activities since the 90’s. This provides it with the requisite exposure for brand positioning of its products. In addition, it posts advertisements around stadia during sporting events.Advertising We will write a custom report sample on Suzuki Media Plan specifically for you for only $16.05 $11/page Learn More The company advertises on newspapers and television stations across the globe as well. Its most successful advert increased the purchase of Suzuki Chevrolet from 1985 to date. Through Rizla Suzuki MotoGP competition, many European markets learnt about Suzuki products in 2006 (Global Suzuki, n.d.). Other events include rallies that Suzuki supports. In other occasions, different sponsors often support events organized by Suzuki. Suzuki equally uses social media to reach out to audiences on Facebook, Twitter, and LinkedIn among other avenues. Industry Information Suzuki belongs to the manufacturing industry. It deals in the design, assembly, and marketing of automobiles in its 23 subsidiaries across the world (Global Suzuki, n.d.). Many external factors influencing sales in the a utomobile sector include politics, economics, technology, and competitor information. Politics A stable political platform provides an opportunity for companies to thrive. Politics influence relations between countries and citizens. This influences the exchange rates of currencies in the targeted countries. Latin America has an unstable political ground. Investors in these countries need to develop risk measurement policies in their media plans in order to develop solutions to business stability even when wars occur. Economics In the past three years, Suzuki engaged in extensive financial training of individuals in Latin America. The company realized that financial illiteracy makes it difficult for consumers to make wise decisions before purchasing products or services. In its attempts to market Maruti 800 in Brazil, Suzuki imported trainees from Peru to teach Latin Americans how to observe financial trends including differences in exchange rates (Global Suzuki, n.d.). This will hel p Suzuki in attracting several Latinos who will have interest in Suzuki stocks. However, other financial factors such as inflation are beyond the control of Suzuki and General Motors (GM) among other players in the market. When recession occurs, it increases the cost of importing used Japanese cars, and new ones; this would increase the price of the imported products, which could interfere with sales. Technology Product development at Suzuki requires sufficient technological input. Technology assists in research, marketing, online banking, and other cost effective activities. Suzuki needs to venture into a market that understands technology properly. It should have an advanced technological community that would carry out online transactions for shipment purposes. Business trends shifted towards online support systems in the 20th century (Katz, 1995), and Suzuki needs to ensure that the Latin market understands these concepts properly.Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Competitor Information Competition from direct and indirect rivals often influences the business strategies adapted by various organizations. In Latin America’s oligopoly market, Suzuki is likely to face direct competition from Toyota and General Motors. An oligopoly market refers to an economy that receives investors and ensures fair distribution of the market share (Katz, 1995). This makes all companies significant to economic growth as opposed to a monopolistic market that focuses on the success of a single investment. Even though Latin America has an oligopoly market, a few investors have outlets in that part America. Toyota and GM are major competitors who invested in Latin America in the mid 90’s. Both GM and Suzuki manufacture automobiles that use the least amounts of fuel; this happens in order to capture the middle-income market in Japan and other targeted countries. According to Sarrazin (2011), Toyota understands the Latin American market well since among th e competitors, it has the longest history in North America. The oligopoly market provides equal room for expansion irrespective of company reputation, size, or ownership. Competitors Financial Information In 2009, GM filed for insolvency because its target market strategy did not succeed. It provided customers with Saturn and Hummer brands even though the Latin American market majorly sought affordable and easy-to-maintain cars. Following a change of strategy in 2012, GM accrued a profit of 3% from the increased purchase of the fuel saving vehicles (Bennett, 2014). The 2008 sales were the least promising with a 23% reduction owing to the poor entry strategy. It entered the market in 1925, and today sells its stock at 11.7 crore for the Latin American market. By the end of the fiscal year 2013, GM made a profit of over $797 million (Bennett, 2014). Toyota’s financial position in Latin America explains its stay in the country since 1990. In 2005, Toyota introduced the Innovativ e International Multi-purpose Vehicle (IMV) following the urgent need for affordable and cost effective automobiles in Peru. This followed a profit reduction of 19% in 2000 because it focused on selling guzzlers. In order to succeed in this market, Suzuki should sell the Maruti 800 alongside farm tractors because of the agricultural landscape. Brand Positioning Toyota and GM are overly careful about the cost of branding their products. Lately, the two assumed an online approach to advertisements, which save space, and money. Online advertising also has many audiences who access social media and the internet. Concerning the adverts, they often critique the adverts or products of the competitors. Toyota and GM are major players in this market, and there are advert slogans that state, â€Å"The better choice.† In a market infiltrated by two companies, such slogans are likely to attack the opponent. Other avenues of advertisement include sports sponsorships and erection of billbo ards on major highways. Even though Toyota accessed the market first, most Latinos prefer GM products because of their diversity (Ogier Bamrud, 2011). People get variety of products depending on price, quality, and products. GM also uses mergers to enhance its brand image. A prospective merger is with Fiat and Opel because the two have a strong presence in Latin America. Suzuki has prospects of venturing the market through Brazil. It needs to focus on adverts that support football in order to acquire public goodwill. Pricing Prado, Chrysler, and Saturn are most of the cars sold in Latin America. The response level towards the products was low since the prices range between $23,529 and $47, 000 (Sarrazin, 2011). Toyota, Opel, and GM currently engage in production of cost-effective and eco-friendly cars in order to attract the target market. These cars are almost 10 times low the price of the initial cars. Even though the competitors manufacture cars only, Suzuki produces variety of automobiles. If the target population fails to respond positively to Maruti 800, they are likely to purchase motorcycles, tractors, or bicycles. Pricing tactics are important to marketers; they need to learn from competitors. Media and clients equally provide sufficient information concerning pricing, and manufacturers need to respond proactively to such data. Suzuki should analyze annual financial reports of its predecessors in the Latin American market. This will enable it make an excellent decision concerning place of investment. Product GM manufactures and distributes Saturn, SUVs, Cadillac Escalade, Chevy varieties, and Sierra among others. The company brought in about 400, 000 different varieties of vehicles in order to serve the American market. Most of these vehicles had a good response in the US, but few Latinos had interest in the classy cars. If the merger with Opel becomes successful, GM will equally distribute Chrysler, which enjoys positive response from the United Sta tes’ market (Ogier Bamrud, 2011). GM exports such vehicles because its target market has a population of many affluent people and many poor people. The socio-economic difference is huge and provision of different products is an advantage to a manufacturer. Innovative International Multi-purpose Vehicles that Toyota developed are cost-effective since they consume limited amounts of fuel (Takahashi, 2014). Today even the Land Cruiser, Vitz, and Demio varieties are relatively small, but heavy duty. Introducing Maruti 800 into the Latino market will compliment efforts made by competitors. Maruti 800’s media strategy succeeded in the African and Indian markets. There is a high possibility that Latinos will embrace the automobile. Place Before determining the place of marketing, competitors assess the response levels to products manufactured by rival groups. Latin America demands for affordable services because the states still strive to fulfill primary needs. It would be u nfair to introduce expensive cars in countries that barely access luxurious commodities. According to Ogier and Bamrud (2011), GM invests in Brazil because the country responds positively to the Saturn Vue. Brazil is a country that hosts many footballers who would be willing to purchase expensive cars. Secondly, in comparison to other Latin American countries, Brazil has the greatest population and physical size. Brazil’s fame in Latin America makes it accommodate immigrants who show interest in foreign automobiles such as GM cars. Suzuki is likely to choose Brazil because of similar factors. GM’s showroom in Mexico enabled the company sell over 900, 000 cars since 1925 (Ogier Bamrud, 2011). Toyota invests in Peru, El Salvador, Venezuela, and Uruguay among other states. As such, Suzuki should explore other markets such as Argentina and Costa Rica in order to gain a competitive advantage. The following chart best explains competitor investment in Latin America. Extern al Information Many factors influence the ability to invest in a foreign country. They include politics, economy, technology, and legal procedures. Politics Politics determine the inter-boundary relations between States. It also determines the relationship between a government and the citizens. Moreover, it exists in the relationship between rivals in a target market. When Suzuki invests in Latin America, it should assess the growth potential in the states by reviewing profiles of other competitors. There is a possibility that the progress of competitors such as Toyota in Latin America could equally apply to Suzuki’s progress in the same place. According to Katz (1995), a politically stable country negotiates monetary exchange rates reasonably. It saves resources for public gain; this reduces the cost of taxation. Most Latin American States have unstable political grounds, which adversely affect businesses. Economics Inflation influences major decisions in this industry. Foll owing the 2009 to 2011 worldwide recession, companies developed media plans that had financial risk management measures. Inflation also influences exchange rates between countries. Considering it is an external factor, Suzuki cannot control it. Instead, it needs to develop a good strategic plan that will help it manage the unpredictable economic terrain in Latin America. Other economic factors that Suzuki needs to assess include the number of major and minor competitors in the target market. This will enable it establish showrooms in the most receptive states in Latin America. Technology Technology is a necessity in the current world. Companies take advantage of it to improve productive for marketing and distribution. Latin American residents should embrace latest technological advancements in order to ease Suzuki’s work in the North. In most cases, it is difficult to traverse a conservative culture when technological matters arise. The Suzuki Association of the Americas unde rstands that penetrating Latin America might be a challenge since most people uphold traditional cultures in doing business and in their thinking (Global Suzuki, n.d.). This might affect technological breakthrough in the country. Suzuki will have to introduce simple aspects of technology during the entry level, and later discuss complex technological matters. Legal Countries have dissimilar tax policies and legal procedures. In Latin America, Suzuki will have to abide to the government regulations in the target country. Suzuki should respect the Equal Employment Opportunities Code (EEOC) in order to avoid any scandals with the public. EEOC standards oppose inequality, gender discrimination, racial prejudice, and other issues that prevent minorities from getting equal employment opportunities. Besides complying with EEOC standards, Suzuki needs to embrace ethical work standards. It should have a code of ethics that all employees follow across different showrooms. Most companies that ignore legal and ethical issue often face scandals (Katz, 1995). A media response unit helps in redeeming brand image and winning public goodwill during such occasions. Current Users After introducing Maruti 800 to the African and Indian markets, it was evident that the car suited middle-income earners who sought to reduce traffic and fuel consumption. A similar case applies to Latin America. Users of Maruti 800 compliment its speed and ability to access various terrains (Global Suzuki, n.d.). In India and Africa, people use the car in both urban and suburban regions. The fact that it reduces congestion of public vehicles promotes its convenience to the suburban areas. People from such regions constantly seek markets in urban regions while acquiring resources from the rural areas. They choose Maruti since it maneuvers through different terrains. Maruti 800 has many traits including affordability, which is a principal factor to consider. India and Africa have huge populations of low and medium-income earners (Global Suzuki, n.d.). They have huge differences between the rich and the poor. This contributes to high poverty levels making it possible for people to acquire the basics only. Following the introduction of Maruti in this market, people displayed interest in ownership of cars for commercial purposes. Indians and Africans like Maruti 800 because of the low fuel consumption rate. A capacity of 300cc enables an individual to drive the car for almost two weeks without refueling. This encourages most people to own such models. Further, its maintenance is easy because of locally available spare-parts in various markets. Maruti 800 provides services for light-users because of its size. However, it does not damage easily; this reduces the cost of maintenance (Global Suzuki, n.d.). In summary, demographics and psychographics of audiences in India, Africa, and Latin America are close. They share related political and socio-economic challenges, and this shapes their mindset. The same applies to audiences who choose other cars from Suzuki, Toyota, and GM. References Bennett, J. (2014). General Motors Profit Falls 13%. The Wall Street Journal. Web. Global Suzuki. Suzuki Motor Corporation. Web. Katz, H. E. (1995). The Media Handbook. Lincolnwood, Ill., USA: NTC Business Books. Ogier, T., Bamrud, J. (2011). Company Report: South American Boost for General Motors. Latin Trade Group RSS. Web. Sarrazin, M. (2011). Toyota and its global strategy. Slideshare.  Web. Takahashi, Y. (2014). Toyota Aims to Top 10 Million in 2014 Global Sales. The Wall Street Journal. Web. This report on Suzuki Media Plan was written and submitted by user J0nah to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.