INTERNATIONAL BUSINESS

Name: Bui Thien Thanh

Class: EBBA 13.1 ID: 11219128
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Significant detail of the articles:
In the article, it points out some ways that help US companies remain relevant in global
competition:
A stronger dollar leaves US manufacturers struggling in the short term but at the same
time promises long-term gains in production efficiency. The dollar appreciated in mid-2014
against the Euro and other currencies, making the prices of goods originating in the US more
expensive than in other countries and the prices of imports to the US cheaper, which widen
US trade deficit.
US manufacturers are automating production processes (by using robots and investing
in new computer controlled cutting machines) to lower costs and redesign products to
improve value (Boston consulting group, Oberg Industries). They also look for ways to lower
cost parts and material in Asia or Europe. They put more focus on highly regulated markets,
such as parts for medical devices and aircraft (Oberg Industries: a family owned company,
makes metal parts for a host of products such as oil - production equipment and door locks).
Global participation and competition create challenges and opportunities for
manufacturers:
When a country's currency rises, its imports become cheaper, and its exports become
more expensive. The bad news for the nation's manufacturers is that they must investigate
measures to keep them competitive in the global market.
Automation of industrial processes, for example, reduces labor costs and enhances
efficiency, allowing enterprises to offer competitively low pricing (Terex Corp). Another
tactic is to reduce presence in price-depended competition markets and shift to quality-
depended markets (Oberg Industries). The alternative method is to relocate large
manufacturing activity to areas where raw materials and labor are inexpensive (Terex Corp,
Frime Equipment Group Inc).
Conclusion
Globalization has boosted competition on a worldwide scale. The foreign exchange markets
significantly affect international markets, particularly in terms of prices. When a country's
currency strengthens, imports from that country are less expensive and exports are more
expensive. The bad news for the nation's manufacturers is that they must investigate
measures to keep them competitive in the global market. These tactics include automating
industrial processes, which lower labor costs and increase productivity, enabling businesses
to set competitively low prices. Another technique is to withdraw from price-dependent
marketplaces and enter quality-dependent ones. The other tactic is to relocate key industrial
processes to regions with inexpensive labor and raw materials. Long-term benefit of
increased efficiency and quality lies in the ability of US businesses to retain consumers while
other international businesses struggle to compete in a weaker dollar environment.