INTERNATIONAL BUSINESS

International Business



International Business

Introduction

The globalization has expanded the worldwide trade, helped in a number of advances in the field of technology, and the increment in the total count of organizations that are operating on the global stage have gave rise to a spectacular change in the context, frequency, and means through which, from diverse backgrounds interact (Bain, 2006, 24-29).

This paper examines the international competitiveness of an organization with respect to Spulber's (2007) “Star analysis” framework. The purpose is to identify the areas which are competitive and which require attention to remain competitive on the global front.

The organization

The chosen organization for this assignment is Apple Inc. Apple Computer, founded in 1976; company is considered one of the groundbreakers of the technological, innovative industry.

Application of the theoretical ideas and Spulber's “Star analysis” framework

Before examining the star analysis for Apple Inc, it is important to discuss the major theories related to international business. Such discussion will facilitate the application to the competitiveness of Apple Inc.

International Trade Theory and Comparative Advantage

The Heckscher-Ohlin tries to explain how they work flows of international trade. It was formulated by the Swedish economist Bertil Ohlin in 1933, modifying an original theorem of his teacher Eli Huckster, formulated in 1919 (Cavusgil,2008,3-11).

The model of the theories of David Ricardo of comparative advantage states that countries specialize in exporting goods that require large amounts of production factors which are comparatively abundant, and that tends to import those goods used in production factors that are most scarce. While the theory of comparative advantage the cause of international trade were the differences in labour productivity across countries, the Heckscher-Ohlin international trade is the fact that different countries have different endowments of factors: that there are countries with relative abundance of capital and other work with relative abundance (Cavusgil,2008,3-11)

Product Lifecycle Theory and Eclectic Paradigm

When analysing the most productive countries, the business have to determine the global product lifecycle. According to the product lifecycle theory, the limited initial demand in other developed countries do that exports more attractive than production.

When demand in these countries increases, the production becomes attractive (joint ventures).

With demand growing, the products tend to become standardized, production shifts to those places where there are lower costs, and consequently, United Kingdom becomes an importer of the product.

On the other hand, the eclectic paradigm developed by John Dunning's research to provide a general framework for determining the magnitude and pattern of production undertaken by foreign-owned companies own a country and also that of domestic production owned by foreign companies (Spulber,2007,37-67).

Porter's Generic Strategy

When operating globally, the company foremost ahs to determine the business model based on porter's generic strategy. The model of generic strategies Porter, professor of corporate strategy at the University of Harvard, offers different ways a company can have a competitive advantage in its market (Spulber,2007,37-67). According to Porter, competitive advantage is sustainable if it can not be copied, substituted or eroded by the actions of competitors and whether changes in the economic environment does not render it ...