Last Updated 07 Jul 2020

Analyze the International business Essay

Words 700 (2 pages)
Views 350

(a) What was the critical catalyst that led Kodak to start taking the Japanese market seriously?

until early 1980s when Fuji launched an aggressive export drive, attacking Kodak in the north American and European markets.

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(b) From the evidence given in the case do you think Kodak’s charges of unfair trading practices against Fuji are valid? Support your answer.

The charges were very valid.

the Japanese government helped to create a ‘ profile sanctuary’ for Fuji in Japan by systematically denying Kodak access to Japanese distribution channels for consumer film and paper. Kodak claims Fuji has effectively shut Kodak products out of four distributors that have a 70% share of the photo distribution market. Fuji has an equity position in two of the distributors, gives large year –end relates and cash payments to all four distributors as a reward for their loyalty to Fuji, and owns stakes in the banks that finance them. Kodak also claims that Fuji uses similar tactics to control 430 wholesale photo furnishing labs in Japan to which it is the exclusive supplier. Moreover Kodak’s petition claims that the Japanese government has actively encourages these practices

Which company is truly Multinational ? Why?


Integrated global outlook
More powerful total company throughout
Better quality of products and services
Worldwide utilization of best reaources
Improved local country management
Greater commitment to global objectives
Higher global profits

Ethnocentric Orientation
• domestic market extension concept:
• Domestic strategies, techniques, and personnel are perceived as superior • International customers, considered secondary
• International markets regarded as
o outlets for surplus domestic production
• International marketing plans
o developed in-house by international division

2 List three differences between Company , Multi National company and Trans Multi National Company ? Content of the Four Basic Multinational Strategies
a) Explain why MNCs have located R & D centres in developing countries?


(a) access to highly qualified scientists as shortages of research personnel emerge in certain fields in industrialised countries, (b) Cost differentials in research salaries between developing and industrialised countries, and (c) rationalisation of operations, assigning particular affiliates the responsibility for developing, manufacturing, and marketing particular products worldwide.

(b) Mention the areas where R & D activities can easily be decentralised.


For instance, Sony Corporation of Japan has around nine R & D units in Asian developing countries. It has three units in Singapore conducting R & D on core components such as optical data shortage devices, integrated chip design for audio products and CD-ROM drives, and multimedia and microchip software.

It has three units in Malaysia working on video design, derivative models and circuit blocks for new TV chases, radio cassettes, discman and hi-fi receiver designs.

It has one unit in Republic of Korea focusing on the design of compact discs, radio cassettes, tape recorders, and car stereos.


It has one in Taiwan designing and developing video tape-recorders, minidisk players, video CDs, and duplicator. Finally, it has one unit in Indonesia focusing on the design of audio products.

Such units often work in collaboration with science and technology institutes in the host country. For instance, Daimler Benz has established such a unit in Bangalore, India, in collaboration with the Indian Institute of Science to work on projects related to its vehicles and avionics business. Current work includes interface design of avionics landing systems and smart GPS sensors for use by the group’s business worldwide.

VARIABEL COST 27000 30000 57000

FIXED COST 13000 13000 26000

40000 43000 83000

1. The Profit Volume ratio [pvr]
pvr=contribution/ sales
=sales-variable cost / sales
= 95000-57000/95000= 0.40
2. Fixed Expenses=======26000
3. Break-Even Sales
Sales- variable = contribution margin
Break even sales= total annual fixed cost
Contribution margin/total sales
=26000/ 0.40

4. Percentage of margin of safety
• Subtract from the projected sales the amount of sales you need to break even. For example, if you anticipate sales of $95,000, but only need $65,000 to break even, subtract $65,000 from $95,000 to get a safety margin of $30,000. • 2

Divide the safety margin by the projected sales to find the margin of safety ratio. In this example, divide $30,000 by $95,000 to get 0.315. • • 3
Multiply the margin of safety ratio by 100 to find the margin of safety percentage. In this example, multiply 0.315 by 100 to get an 3.15 percent margin of safety.

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