International Business Chapter Nine

1) I think Arceliks prospects to be expose in emerging markets & evolution economies than in advanced economies. Emerging markets & evolution economies are attractive to Arcelik because they represent promising export markets for products and services. They are perfect bases for locating manufacturing activities because of low labor costs. Emerging markets are popular destinations for globose sourcing-procurement of products and services from foreign locations. The growing middle class in these countries implies essential demand for a variety of consumer products. Arcelik should adapt the strategies and tactics to suit incomparable conditions.Firm can reap benefits from such markets by partnering with family conglomerates 2) Types of risks & challenges Arcelik is likely to hardihood in doing business in emerging markets Political Instability The absence seizure of reliable or consistent governance from recognized government regime adds to business costs, increases risks, and reduces managers ability to forecast business conditions. delicate Intellectual Property Protection In many Emerging markets, laws that bulwark intellectual property rights may not been forced, or the judicial action may be painfully slow.Partner availability and Qualifications Arcelik needs to render alliances with local companies in countries characterized by inadequate legal and political frameworks. through with(predicate) local partners, foreign firms can access local market knowledge, get to supplier and distributor networks and develop key government contacts. Special considerations must be taken into account to estimate the true demand in emerging markets. Managers can follow one of three approaches to more realistically assess emerging market potential.They can rely upon per-capita income, considered the size and yield rate of the middle class, and build a more comprehensive act of indicators such as the emerging market potential index. 3) Arcelik can demo good c orporate social responsibility by engaging in activities that facilitate economic development in emerging market and developing economies. It can serve low income countries with inexpensive, specifically- designed products. To lead in international household appliances, management needs to improve operational efficiency to levels that run into or exceed major competitors and increase investment in mellowed growth markets