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Insights:
Pepsi employed the right approach when they took careful notice of
the political and cultural scenario in India, they offered India a
proposal that was difficult to resist by feeding the government with
their own advocacy. Then they kept up appearances to indicate that
they kept their end of the proposal which was although not in the same
way they promised to do but it did somehow compensate for their lack
of keeping their promises. They also made an alliance with the local
companies which helped in assuring the government and the public that
they were being true to their proposals. Pepsi however committed
errors when they padded their statistics and numbers to mislead the
public, they also did not respond to their critics arguments which
in turn led to a ministry of commerce investigation; they also were
not able to create jobs for the number of people they promised. Lastly,
the exporting of agricultural produce also included items that were
already being exported and was not part of the original agreement.
The major hurdle that Pepsi faced in their move to enter India was
the political climate of the country as well as the regulated economy
which was largely controlled by the government and dominant political
parties. The company in its agricultural venture also had difficulty
in convincing farmers to see their technology and to work for them as
subcontractors.
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food products and it has now become a major player in India but it
should not be complacent because if they concentrate on using India
as the grower of their raw products for their food products then they
should give more in return to the country in terms of socially relevant
projects, charities and educational foundations that would improve
the agricultural sector and the food sector as well as developing
environmentally sensitive factories and packaging.
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protected by law against the competition of foreign investor. The
imposition of excises taxes on importation of goods is one move of
the government to protect local business.
In the line with the article and international trade, I think cross
boarder competition cannot be eliminated, it will always be present
once a certain country engages international trade, so the challenge
is up to the countrys government to protect its local investors as
well as not to destroy the relations towards its foreign investors.
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Globalization: The Example of Dubai
1. Dubai is situated on the Persian Gulf coast of the United
Arab Emirates (UAE). Its neighbouring countries include
Saudi Arabia and Iran. It contains on a relatively small oil
reserves. The area of Dubai is 3,885 sq. km. and has only 72
km. of shoreline along the Persian Gulf
2. Important facts that have Dubai became successful
Only one family ruled Dubai. The rulers and their
advisors have skilfully plotted the course that led to
Dubais role as a globalized centre of business and
tourism
Majority of the population is made up of expropriates
Tiger Woods played golf in Dubai for a 1 Million
Dollar appearance fee. As a result, Dubai received a
massive amount of worldwide media exposure
Dubai International Airport has become the main hub
for travel between many destinations in Europe, Africa
and Asia
Dubai focused on providing and creating a successful
tourism-based economy
Dubai is investing billions of dollars to become the
business centre of Arab world and a major player in
world commerce.
3. The tourism based economy helped Dubai improve its current
economy, by creating significant attraction where people
could visit and an effective and attractive infrastructure
in these places for people to visit.
4. The move toward globalization can be very controversial. In
the business world the success of Dubai was echoing. In less
than 40 years Dubai transformed itself from a sleepy port
city to a major global business and tourism centre. Dubai
was treated as a bench mark for countries who want to become
globalize in the world.
5. Tolerance played an important role in Dubais success.
Dubais leaders decided to take advantage of the spread of
globalization to allow the Emirate to become prosperous. The
step of Dubai toward globalization was bombarded by both
positive and negative reactions in the international
business. Without tolerance employed by Dubais rulers and
advisors, they would have not reach their spot today.
6. Dubais building a new land in the Persian Gulf, affected
Dubais development through:
Promoting a place in which to live, do business,
invest and visit. As well as private estates and
commercial resorts can be built
Building this new land can boast Dubais tourism and
increase its development and progress
7. Reactions against the globalization of Dubai was a bit
controversial. The business world within Dubai raised a
concerned about bringing the moral laxity of the western
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world into what had initially been a conservative Islamic
Society.
8. Globalization can be responsible for helping increase wealth
to all people. Being globalized does not mean one country
need to imitate or adopt a globalized countrys cultures,
norms and traditions, thus totally forgetting their own. The
use of globalization must to for betterment not for
destroying one culture and adopting another. Through
globalization one country can improve, adopt and customize
the best practices, laws and policies of a globalized
country in order to best suit their countries development.
Bottom line globalization should be leading to increase and
improvement of one countrys wealth, development and
progress.