The Impact of Globalisation on BRIC Economises Literature review

The Impact of Globalisation on BRIC Economises - Literature review Example Globalisation has been attributed to the acceleration of international economic integration, which has been unexpected in numerous ways. However, there are expectations that this might contribute to the vulnerability of workers in BRIC economies. There are resenting developments in the world concerning the increased importance of emerging economies, for instance, China has become a large exporter, whereby it has raised its reputation in international production networks entailing off shore business. Therefore, globalization has enabled these countries to work together in order to counter well-established interests and organizational structures. The relationship between America and Europe has been substantial in facilitating the developments between the BRIC countries.Globalization in BRIC countries that are attributed to integration with the inputs, finished goods, and services, which are underscored by increased business transactions in the world trade. There are factors that are sp ecific to each country or region, and they have an influence to domestic and trade reforms in BRIC countries since these countries have made a significant expansion of their exports, thus contributing to the development of their economies.In addition, this has a significant distinction of the BRIC to other countries in the world; for example, China’s performance has been in accordance to the perceptions of the pubic in other countries that have been attributed to the same economic performance, such as India, Russia and Indonesia.... The relationship between America and Europe has been substantial in facilitating the developments between the BRIC countries. Globalization in BRIC countries that are attributed to integration with the inputs, finished goods and services, which are underscored by increased business transactions in the world trade. In fact, the ratio of trade-to –trade GDP and the shares of the value addition by the exporters has fostered a uniform development in the wide range of various economies in the world. There are factors that are specific to each country or region, and they have an influence to domestic and trade reforms in BRIC countries, since these countries has made a significant expansion of their exports, thus contributing to the development of their economies (European Commission, 2009, 1). In addition, this has a significant distinction of the BRIC to other countries in the world; for example, China’s performance has been in accordance to the perceptions of the pubic in other countries that have been attributed to the same economic performance, such as India, Russia and Indonesia. Globalization in the BRIC economies has made a significant contribution to the creation of opportunities for investors, whereby the multinationals in the world are targeting these countries, with the objectives of exploiting their markets (Dranitsyna, 2007, 1). For instance, in China, the General Motors made higher sales compared to America, in 2010, and there are expectations that China will become the world’s largest market for aviation and luxurious goods. In fact, BRIC countries have eliminated competition concerning growth and incremental consumption with other countries in the future. Moreover, globalization has caused a shift in the global consumption towards the emerging

Zara Incorporation as a Business Essay Example | Topics and Well Written Essays - 1500 words

Zara Incorporation as a Business - Essay Example The discourse would discuss the reasons why Zara’s business model could be disruptive to the apparel industry. Likewise, the essay would also describe how Zara’s business model is different from the others from a risk management perspective and why is this so important to Zara’s success. Amancio Ortega, considered the richest man in Spain, founded Zara in 1975 in La Coruna, Galicia, Spain. As revealed in the Zara CaseQuest (Doiron: Introduction, n.d.), â€Å"Zara is one of the most successful apparel manufacturing and retail business in the world today. They are not the biggest, but their profit margins and growth rates are industry leading† (par. 3). The task was explicitly stated as identifying what business is Zara in. To enable to accurately respond, one needs to follow the identified process with twelve distinct learning tasks, including expounding on the disruptive business model; the apparel industry business model (with Gap, as the proxy for player s within the industry); the customer characteristics of Zara; the unique customer behaviors and behavior drivers; and finally Zara’s core competencies and its distinct business model to assist in responding to the task. As a retail chain of Inditex, Zara’s major competitors were revealed as Gap, H&M, and Benetton (as shown in Exhibit 4 of the Case) (McAffee, Dessain, & Sjoman, 2007, p. 15). The case analysis would examine the business model of the apparel industry with Gap as the predominant player. Using comparative financial performance, the following bar chart would reveal the comparative performance of these firms using net operating revenues and net income within the apparel industry from 2001 to 2002: Figure 1: Inditex and Key Competitors: Net Operating Revenues in Millions for 2001 and 2002 Source of Financial Data: (McAffee, Dessain, & Sjoman, 2007, p. 15) Figure 2: Inditex and Key Competitors: Net Profits in Millions for 2001 and 2002 Source of Financial Data: (McAffee, Dessain, & Sjoman, 2007, p. 15) It can be deduced from the column charts that despite Gap’s reflecting dominance and leadership in terms of net operating revenues for both 2001 and 2002, one could observe that net income reflected in 2002 for both Inditex (Zara) and Gap are closely comparative; indicating their stiff competition despite differences in applications of business models. After reading the instructions and process outlined in the Zara CaseQuest (Doiron, n.d.), the paper is hereby presented to describe both the business model for the industry and the business model for Zara. The discourse would discuss the reasons why Zara’s business model could be disruptive to the apparel industry. Likewise, the essay would also describe how Zara’s business model is different from the others from a risk management perspective and why is this so important to Zara’s success. Zara’s Business Model Zara is a retail chain of Inditex, a multinational clothing retailer and manufacturer headquartered in La Coruna, Spain, that was founded in 1975 and designs and manufactures clothes for women, men and children according to customers’ desires. Zara eminently applies a disruptive business model, a theory originally adopted by Clayton Christensen from the concept of disruptive innovation. In Christensen’s official website, disruptive innova