Global Business Essay Example | Topics and Well Written Essays - 2500 words - 2

Global Business - Essay Example three countries have been considered from which Elecdyne can choose, along with a comparative analysis of the countries and Japan through a combined SWOT and PEST analysis. Some of the most important factors that Elecdyne should consider are cost minimization and profit maximization with respect to internationalization in a country leading to improvement in profits and sales revenue (Hurn, 2009). The other factors include access to technology and availability of technological expertise in a particular country. Elecdyne also must take into account the access to new markets through internationalization as well as evaluate size of target markets before selecting a country. Besides these, political and economic factors are also very important as Elecdyne should not be taking too many risks. The culture-fit factor, which is one of the most essential factors to be considered, estimates the amount of organizational conflict can arise due to difference in Japanese culture and that of the hos t nation. The target markets for Elecdyne are developed and developing markets, which have considerable demand for quality electronics goods. Since Elecdyne uses original licenses from MNCs, products offered are not too cheap. So, Elecdyne targets the middle and higher income group of people. The current shopping trends with improvement in economy of developing countries and rising demand for Japanese goods, which are known for their high quality standards, is an advantage for growth of Elecdyne in foreign markets. Since most of Elecdyne licenses are taken from MNCs, the technology employed is always high-end. The availability of research graduates in developing countries at lower wages rates than Japan is a major plus point, which will help Elecdyne to improve its technological capabilities. The general economic trends are not very encouraging as the world economy recovers from a recession; but, many governments are giving tax rebates and reducing duties in a bid to attract new