THE KORUS
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The Government of the Republic of Korea and the Government of the United States of
America, recognizing their longstanding and strong partnership, and desiring to strengthen their
close economic relations, convinced that a free trade area will create an expanded and secure
market for goods and services in their territories and a stable and predictable environment for
investment, thus enhancing the competitiveness of their firms in global markets, desiring to raise
living standards, promote economic growth and stability, create new employment opportunities,
and improve the general welfare in their territories by liberalizing and expanding trade and
investment between their territories, seeking to establish clear and mutually advantageous rules
governing their trade and investment and to reduce or eliminate the barriers to trade and
investment between their territories, agreeing that foreign investors are not hereby accorded
greater substantive rights with respect to investment protections than domestic investors under
domestic law where, as in the United States, protections of investor rights under domestic law
equal or exceed those set forth in this Agreement.
Resolved to contribute to the harmonious development and expansion of world trade by
removing obstacles to trade through the creation of a free trade area and to avoid creating new
barriers to trade or investment between their territories that could reduce the benefits of this
Agreement, desiring to strengthen the development and enforcement of labor and environmental
laws and policies, promote basic workers’ rights and sustainable development, and implement
this Agreement in a manner consistent with environmental protection and conservation, building
on their respective rights and obligations under the Marrakesh Agreement Establishing the World
Trade Organization and other multilateral, regional, and bilateral agreements and arrangements
to which they are both parties and committed to furthering their economic leadership in the Asia
Pacific region, in particular by seeking to reduce barriers to trade and investment in the region.
THE KORUS
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Since the U.S.-Korea Trade Agreement (KORUS) went into effect in 2012, the U.S. trade
in goods deficit has increased from $13.2 billion to $22.9 billion, an increase of 73 percent.
Thus, KORUS came into effect, the overall trade deficit between the United States and Korea
increased from $6.3 billion to $10.7 billion, a 70 percent increase. In July 2017, at the direction
of the President, U.S. Trade Representative (USTR) Robert Lighthizer initiated discussions to
amend KORUS, setting off multiple rounds of negotiations in 2017 and 2018. As a result of
negotiations, South Korea wills double the annual number of American automobiles from 25,000
to 50,000 per manufacturer per year that can enter its market using U.S. safety standards. South
Korea is simplifying the sales environment for U.S. cars and parts by taking into account U.S.
environmental and emissions standards.
For additional source The Donald Trump administration said it has widened United States
access to South Korea’s car market while providing American manufacturers protection from
South Korean imports. While not directly impacting agriculture, the renegotiated deal addresses
vehicle exports between the countries and establishes a quota for South Korean steel exports to
the U.S. The Asian nation remains exempt from tariffs the Trump administration recently
imposed on steel and aluminum imports. The United States and South Korea have reached an
agreement to overhaul the six-year-old U.S.-Korea Free Trade Agreement. President Donald
Trump had called the original Korea pact a job killer
THE KORUS
Resources for additional source:
Mauborgne, W. Chan KimRenee. “How Strategy Shapes Structure.” Harvard Business
Review, 28 Aug. 2015, hbr.org/2009/09/how-strategy-shapes-structure.
Gomes, Roberto Mozart. “The Korea-US Free Trade Agreement
(KORUS)” EconMatters, 7 May 2010, www.econmatters.com/2014/09/dubai-as-internationalfinance-center.html.
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Running head: HTC FIGHTS APPLE
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Leonardo Catarina
Friends University
Global Strategy
09-02-2021
HTC FLIGHTS APPLE
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Question One
From a resource vie base; HTC is a company that manufactures smartphones. They are known for
their innovation to meet customer’s satisfaction and customization was their core. HTC has innovated
new technologies for user friendly phones. Its focus was on android and operating systems platforms.
Initially HTC was into manufacturing phones for other brands only when Microsoft involved HTC into
their business, HTC realized their potential of building their own brand which turned out to be HTC a
great success.
Question Two
In the smartphone and tablet market, Apple has been the top innovator with hundreds of patents
on its design, functionality, software and other features. Companies like Samsung, HTC and few other
firms imitated some of the features of Apple to dominate the smartphone market, but they ended up
settling the disputes in or out of the court. While Samsung paid billions of dollars as fine for infringing
patents, HTC took a different route to settle the dispute.
Question Three
Alternative cost-effective solution must be looked at by these companies to make best use of the
fluctuation to their advantage, maintaining cordial relationships with host government is a priority. This
can is essential in the long run, and Business opportunities that make use of innovation can be looked at
by these companies. These businesses have the potential to make the companies stay ahead of
competition.
HTC FLIGHTS APPLE
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References
Peng, M. (2017). Global Strategy 4th Edition. http://hdl.handle.net/20.500.11937/62398
.
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Case Study: North America
Leonardo Catarina
Friends University
Global Strategy
09-15-2021
2
Case Study: North America
Question One
There are several advantages associated with the adoption of geographical structure, as
seen in the case study. Firstly, it allows the regional headquarters to focus on addressing local
needs (Peng, 2017). For instance, picking out the market gaps and the areas that require
improvement. Secondly, the local managers are able to form a strong relationship with suppliers
and clients, and that eases the process of doing business. Thirdly, adopting a geographical
structure eases tracking of performance in specific markets. In that way, it helps determine areas
that are potential investment options. However, there are different disadvantages associated with
the geographical structure. For instance, there is a possibility of the local unit functioning
independently and hence detaching from the organizational goals. Apart from that, there is a
chance of differences of opinions and communication gaps emerging between various regional
units. That can lead to instances of underperformance and employee dissatisfaction with their
jobs.
Question Two
There are different advantages of the matrix structure, as noted in this case. Firstly, there
is a real-time exchange of information which eases the communication process. Secondly,
adopting a matrix structure motivates different teams in an organization to work closely and
efficiently. Notably, the goal of each manager in a different category division is to increase sales.
Similarly, the managers at the regional level aim to increase sales. The presence of a common
objective among employees at different management levels ascertains they work together
efficiently. Even so, there are several disadvantages associated with this structure. To illustrate,
there is a dual reporting requirement placed on employees. Given that, there are instances where
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employees get confused about who to report to. Secondly, divisional managers could have
different expectations of the employees when compared to regional managers. When employees
seek to meet the expectations of the regional managers, it might strain the relationship with the
divisional managers. Such complexities and the emergence of internal conflicts can affect
organizational performance negatively.
Question Three
Multinational corporations often face a dilemma when determining if the managers are
acting in the organization's best interest or seeking to fulfill self-interests. The situation becomes
harder in instances where managers are situated further away from the headquarters. In Babe's
case, he opted to act contrary to the organization's strategy to avoid the shutdown of the North
American unit (Peng, 2017). For instance, he outsourced transport which was considered a core
function of Bayer. The best method to ascertain that managers are acting in the interest of an
organization is to assess the key performance indicators. The results of such an assessment will
help to understand what is going on in regional offices. After that, there will be a determination
of whether it is deviating from the organization's strategy. Consequently, the regional
management will intervene before the situation results in adverse outcomes. For example, it
would have been possible for the leadership to intervene and determine if Babe’s actions would
affect the company negatively.
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Reference
Peng, M. (2017). Global business (4th ed.). Cengage Learning.
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GE Innovates
Leonardo Catarina
Friends University
Global Strategy
09-15-2021
2
GE Innovates
Question One
There are different ways in which multinational enterprises (MNEs) such as General
Electric (GE) can manage growth to ascertain long-term success. Firstly, it is ensuring the
growth is customer-focused. In that way, the MNEs can create high-value propositions that will
meet the clients’ needs. For example, GE opted to develop portable ultrasounds to address the
needs of patients in emerging markets such as China (Peng, 2017). Secondly, it is critical for
MNEs to focus on their areas of strengths. To illustrate, GE used lessons from the success of its
portable ultrasound in China to create a handheld electrocardiogram in India.
Question Two
It is also essential for the MNEs to learn about the country's tastes, market transitions,
and global trends. That will be achieved by investing in marketing research which is bound to
offer insight into different trends and tastes. For instance, through market research, GE realized
that more than 80 percent of people in China relied on rural hospitals (Peng, 2017). Therefore,
the compact ultrasound machine was not serving the needs of the market. As a solution, GE
ended up making the portable ultrasound machine. Market research will also aid in making
market transitions and learning about global trends. Besides that, MNEs can learn about client’s
tastes through assessing the level of client satisfaction. That will offer ways to improve the
current products and services.
Question Three
Furthermore, it is possible for MNEs such as GE to improve the odds for innovation. To
start with, the MNEs should create an organizational culture that embraces innovation. Secondly,
it is allocating resources towards the training and development of employees. Thirdly, MNEs
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need to offer incentives to employees who are actively involved in innovating. For example,
rewarding employees who develop innovative solutions.
Reference
Peng, M. (2017). Global business (4th ed.). Cengage Learning.
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Reflection
Leonardo Catarina
Friends University
Global Strategy
08-29-2021
2
Reflection.
The concepts I learned in the last two weeks have contributed immensely to my business
knowledge experience. Firstly, I learned that most businesses strive to create a competitive
advantage in different ways. For instance, a firm like Ryanair opted to pursue a cost reduction
strategy to gain a competitive advantage over other bigger organizations such as British Airways.
As for IBM, it possesses resources that other companies do not own, and hence it can compete
favorably. Additionally, it has transformed itself into an on-demand business which allows it to
respond to unpredictable market changes. IBM has also adopted the utilization of flexible cost
structures, which enables the organization to respond to changing business needs.
Secondly, I learned how porter’s five forces affect businesses. To give an example, if
there is a high threat of substitution, it will drive down sales and hence profitability. Therefore, it
is essential for a company to assess whether its products and services are differentiated. In
addition to that, an aspect like the bargaining power of the buyers will have an immense impact
on the prices set by a company. If buyers have higher bargaining power, the business will set low
prices to increase sales (Pervan et al., 2017). There are cases where economic conditions are
bound to have an effect on the bargaining power of the buyers. For instance, during the great
recession, selling luxury items was difficult. That gave more power to the consumers, and
companies had to lower product prices as a way of maintaining steady sales. In my view, porter’s
five forces have an immense effect on how businesses create strategies.
Lastly, I learned that companies employ an array of strategies to compete in foreign
markets. However, it is essential for a firm to have a detailed profile of the foreign market. For
instance, who are the main competitors? What are their areas of strength? An example of a
company that used this approach is Microsoft which was facing increased competition in the
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Chinese market from Linux. Notably, Linux was a free platform, unlike in Microsoft, where
users had to pay. The leadership at Microsoft opted to adopt a strategy of seeking large
corporations to use their products legally. Hence, the company was able to gain footing in the
Chinese market.
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Reference
Pervan, M., Curak, M., & Kramaric, T. (2017). The influence of industry characteristics and
dynamic capabilities on firms’ profitability. International Journal of Financial
Studies, 6(4), 1-19. https://doi.org/10.3390/ijfs6010004
Peng, M. W. (2014). Global strategy (3rd ed.). Cengage Learning.
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