Global Business Context Outline Example | Topics and Well Written Essays - 1000 words

Global Business Context - Outline Example The main purpose of this document is to develop a set of parameters by which an ideal country can be chosen for locating the business. The rate of economic growth in southeast Asia is quite low in comparison to other countries. Therefore, its GDP per capita had been falling to a certain extent behind that of Indonesia, Brazil and China. It has been stated by OECD (Organisation for Economic Co-Operation and Development) that those countries possessing more than $ 8,000 of per capita income are classified as high income countries. Therefore, the product of global venture is likely to succeed if the country has more than $8,000 of per capita income. The development of the product along with the sales and marketing of the product requires high skilled employees especially for the purpose of designing and engineering services. Therefore, the staff must possess good communication services. It is the ubiquity of the mobile phones that causes changes in the cultural norms. Although the chips will add new features to the mobile phones, most of its features may not be accepted universally. Therefore, there is socio-cultural impact of the chip on the buyers. Yes, the demand for the product is sensitive to recession because during the times of recession, the buyers may undo the purchase of cell phones and therefore have an impact on the mobile chip as well. The product requires high level of financing in order to get off the ground. It has been noted that most of the mobile chip companies, such as Nokia are investing huge amount of money to expand its operations. The companies compete in terms of both price and non price competition. They try to reduce the overall cost of operation and therefore lower the price of their product. In addition to this, the companies try to make the product attractive by adding new features to it on a regular basis. Based on your research summarised above, in this box you must now