In this assignment the nature and trends of globalisation will be identified and
analysed, which will include the investigation of patterns, drivers and
methods of internationalisation. After explaining theoretical principles and
theories, those will be applied Nokia in order to identify how the company is
doing business internationally. [...]
Table of Contents
1. INTRODUCTION
2. NOKIA’S ENGAGEMENT IN GLOBAL TRADE
2.1 Nokia’s International Background
2.2 The Pattern of Internationalisation
2.3 Extent of Globalisation – Is Nokia a truly global business?
2.4 Nokia’s International Business Strategies - Theories of International Trade
2.4.1 International Product Life Cycle
2.4.2 The Stages of International Business Expansion
2.5 Trade Disputes/Barriers with China
2.6 Global Shift to Protectionism
3. CONCLUSION
Objectives & Research Topics
This assignment aims to identify and analyze the nature and trends of globalization, specifically focusing on the patterns, drivers, and methods of internationalization. By examining theoretical principles, the paper evaluates how Nokia operates internationally and investigates the current global shift toward protectionism, with particular emphasis on the role of China.
- Investigation of internationalization patterns and drivers
- Application of international trade theories to Nokia's business strategy
- Analysis of market expansion and product adaptation in emerging economies
- Evaluation of trade barriers and their impact on global business operations
- Exploration of the shift towards protectionist policies since the 2008 financial crisis
Excerpt from the Book
2.5 Trade Disputes/Barriers with China
Until the late 1970’s, China prohibited foreign direct investment in their country and restricted foreign trade. (Daniels et al., p.132) However, in 1978, a law was enacted that started “China’s reintegration into the global economy”. From that point, the markets were more and more liberalised and free trade principles were adapted, which helped China to become one of the most important global players. It is interesting for companies to produce in China due to low labour costs, but also the increasing purchasing power of its people is a pull factor for organisations to expand there. (Cavusgil, 2012, p.1 [online]) According to the FTSE Index, China belongs to the “secondary emerging countries” (Cavusgil, 2012, p.3 [online])
However, if an organisation wants to do business in any foreign country, it faces many barriers, some of which are natural (innocent) and others are imposed. (Armstrong, 2012) The imposed trade barriers can again be split into “tariff barriers” and “non-tariff barriers”. The former are taxes “levied on a good transported internationally” and the latter can be either subsidies or quotas. A third category would be “non-competitive barriers” that can include practices like foreign-exchange controls, import licences, “buy local” legislations etc. (Rugman & Collinson, 2009, pp.169-172) Businesses operating in China are particularly experiencing political and legal difficulties, since “the government manipulates market activities to achieve political purposes”. (Daniels et al., 2011, p.133)
Summary of Chapters
1. INTRODUCTION: Outlines the scope of the assignment regarding the analysis of globalization trends and introduces Nokia as a case study for international business.
2. NOKIA’S ENGAGEMENT IN GLOBAL TRADE: Details Nokia’s historical international background, its application of expansion models, and its strategic adaptation in emerging markets like China.
2.1 Nokia’s International Background: Traces Nokia’s evolution from a pulp mill in 1865 to a global leader in telecommunications, emphasizing its strategic shifts.
2.2 The Pattern of Internationalisation: Applies the "Pattern of International Expansion" model to categorize Nokia’s level of global commitment.
2.3 Extent of Globalisation – Is Nokia a truly global business?: Analyzes whether Nokia meets the criteria for a truly global business by examining market presence, R&D, and management diversity.
2.4 Nokia’s International Business Strategies - Theories of International Trade: Introduces theoretical frameworks for international trade and their application to corporate strategies.
2.4.1 International Product Life Cycle: Explains how the product life cycle theory is used by Nokia to determine production locations and market selection.
2.4.2 The Stages of International Business Expansion: Examines Nokia’s use of foreign direct investment and strategic alliances as part of its incremental expansion model.
2.5 Trade Disputes/Barriers with China: Discusses the regulatory and political landscape of China and how Nokia navigates trade barriers and currency issues.
2.6 Global Shift to Protectionism: Analyzes the resurgence of protectionist measures among G20 nations and the impact of these policies on global trade.
3. CONCLUSION: Summarizes the dangers of the global shift to protectionism and advocates for cooperative solutions based on economic equilibrium.
Keywords
Globalization, Internationalization, Nokia, Emerging Markets, Protectionism, Trade Barriers, Foreign Direct Investment, FDI, International Trade, China, Product Life Cycle, Strategic Alliances, Economic Crisis, Market Expansion, Multinational Corporation
Frequently Asked Questions
What is the core subject of this paper?
The paper examines the globalization of business, using Nokia as a central case study to analyze international expansion strategies and the impact of the global shift toward protectionism.
What are the primary themes discussed?
The central themes include patterns of internationalization, the use of theoretical trade models, challenges in emerging markets like China, and the rise of trade barriers in the post-2008 economic era.
What is the primary objective of the research?
The objective is to identify and analyze the trends of globalization, investigate the methods of internationalization, and evaluate how a large enterprise like Nokia adapts its business strategy to these factors.
Which scientific methods or models are applied?
The author applies several academic frameworks, including the "Pattern of International Expansion" (Daniels et al.), the "International Product Life Cycle" (Vernon), and the "Uppsala Internationalisation Process Model".
What does the main body of the work cover?
The main body covers Nokia’s corporate history, its international operational structure, a detailed application of trade theories to its business decisions, and an analysis of the legal and political barriers encountered when doing business in China.
Which keywords define the work?
The work is defined by terms such as Globalization, Nokia, Emerging Markets, Protectionism, FDI, Trade Barriers, and Internationalization.
How does Nokia adapt to the challenges of the Chinese market?
Nokia adapts by establishing local production facilities in China, which mitigates import tariffs and allows the company to benefit from lower labor costs while staying close to a major consumer market.
Does the author consider Nokia a "truly global" business?
The author concludes that while Nokia is highly involved in international business, it does not fully meet all criteria for a "truly global" company—such as headquarters dispersion and external R&D—suggesting it functions more as a multinational entity.
What is the significance of the "Big Mac Index" in this context?
The index is used as an indicator to support the argument that the Chinese Yuan was undervalued, which created tensions regarding trade competitiveness during the analyzed period.
- Citar trabajo
- Rieke Hinrichs (Autor), 2013, International Business: Globalisation of Nokia, Múnich, GRIN Verlag, https://www.grin.com/document/214796
