IKEA IN CHINA ( international business) Research Paper

IKEA IN CHINA ( international business) - Research Paper Example Moreover, there are also possibilities of a Free Trade Agreement. Also, the currency in Qatar is stable and no foreign exchange controls are imposed (Zahra, 2014). IKEA in Qatar has to go through a detailed political insight before establishing their business. Qatar is open to the foreign businesses and the political factors will help IKEA to prevail their policies. The stable currency allows IKEA to carry out their strategy of good quality products in affordable prices. Reduced tariffs and no unnecessary trade restrictions would allow IKEA to carry out their sales without hindrance (Fromherz 112). However, there are certain tender bond requirements and joint venture requirements for international businesses that may hinder IKEA’s smooth growing in Qatar. Moreover, there is an increasing tax on corporate income which may threaten IKEA’s future profitability (Healy 53). Qatar’s socio-cultural factors are highly important in considering the market for international businesses. Qatar has a small population of about 1 million and out of those only one-fifth of the population is Qataris while four-fifths are foreign workers. The resources, stable government and political system, and the strong economic system are leading to a population growth gradually. Qatar has a diversified culture with many locals and foreigners from South Asia, Iran, Jordan, Egypt, and other countries. The reform minded government is currently spending heavily on the infrastructure and construction sectors to improve the lifestyle and standards of living of the people (Algethami, 2013). The affect of socio-cultural factors on IKEA’s strategy will be notable. These are important as they would determine the acceptance of IKEA and their products in the local market. IKEA will face challenges as they will have to fulfil the demands and expectations of locals who belong to different cultures rather

Globalization of one place Term Paper Example | Topics and Well Written Essays - 1750 words

Globalization of one place - Term Paper Example However, contemporary globalization marks a critical shift among the nations by bringing the society and its forces into greater proximity to one another. In the Tropic of Chaos, Christian Parenti sheds lights on a new dimension regarding the impact of the increased globalization in the face of climatic changes. He analyzes how the extreme weather had bred to humanitarian crisis, state failure and banditry, ultimately accumulating for a greater catastrophe among the nations. In this paper, we shall analyze the contemporary globalization of Mexico and how it has been influenced by the extreme weather changes and other external forces. Mexico has been a rapidly developing economy from the beginning of the twentieth-century, marked by its progressive changes in the economic and sociopolitical components. The economic and political significance of the country places it at a remarkable spot in the global sphere. Therefore it is important for the country to gain knowledge about the opportunities and potential drawbacks that globalization would bring into its economy. â€Å"Cutting agricultural subsidies, democratization, and giving poor countries a place at the table at trade negotiations are all steps in the right direction.† (Rivoli 256). It could be evident that globalization affects different social sectors of Mexico differently, causing economic, financial, political and environmental disturbances to the nation. The local responses, to these forces of globalization in Mexico, particularly the business and agricultural sectors, cause the major changes to its economy, consequently, facilitating or sustaining the nation’s development globally. Critics have pointed out that the contemporary globalization â€Å"puts jobs and communities at risk in the rich countries and exploits cheap labor in the poorer countries; increases threats to the environment; and undermines the foundations of democracy and social stability by subjecting national