John Christian B.

Galvez
Strategic Management
Questions:

Why are consumption patterns becoming similar worldwide? What are the strategic implications of this trend?
Due to markets being global, businesses are exposed to one another, making it that, they try to make similar
strategies compared to their competitor since they find it effective, as result consumption patterns are becoming
similar globally, it is also due to global markets becoming more uniform as time passes. These patters also help the
consumption patterns in becoming similar in today’s economy.

Why is globalization of industries a common factor today?

Globalization is an inevitable factor for businesses, due to limited knowledge that each individual has, they
start to seek others for knowledge, this is where globalization comes in. Businesses from other countries gathered
together to place a product for each respective countries, globalization are also part of strategies of a business, they
may be able to discover effective methods or practices that they learned from other countries that are applicable to
their own. Globalization are a common factor, because they cannot be avoided, and it is essential or needed in order
for an economy to improve.

List six reasons why strategic management is more complex in a multinational firm.

The following are reasons why strategic management is more complicated in multinational firms:
1) There is a potential for foreign exchange losses due to change in exchange rate or exchange rate
fluctuations.
2) There is a risk of expropriation of assets.
3) Due to a firm being multinational the possibility of unfavorable foreign court interpretations from contracts
and agreements cannot be simply ignored.
4) There are laws implementing numerous restrictions against import or export and multinational firms are
known for exporting and importing goods.
5) Tariffs and taxes cannot be avoided or are strictly implemented.
6) Trade barriers such as dialect differences.

Why are some industries more “global” than others? Discuss.

First reason is that there are limited political powers that one country has, example is that, the Philippines
does not have good ties with the US due to recent political issue, making it that Philippines would have a harder time
trying to negotiate with the US. Countries that have stronger ties with other countries have an easier access to
“globalization” making them more global than the others. Second is that, industries become global for different
reasons, because not all industries came from the same state or economy. For example, the aircraft economy
became global because, many countries are not an expert when it comes to aviation services, so the need for it
arises, making it become more global.

Do you feel that protectionism is good or bad for the world economy? Why?

Even if there are benefits that comes with protectionism, I will still side to the fact that it would be bad for the
world economy. Sure, in the short-run, protectionism may be able to provide us a good state of economy we would
be able to sustain, but in the long run, it would make consumers and businesses pay more. It may protect jobs in the
short-term, but the economy as a whole would be better would be served in allowing imports that are cheap and good
for businesses. This may destroy many businesses and only consumers would benefit from lower prices.