Friday, February 28, 2020

Why and How Retailers Internationalize - H&M Literature review

Why and How Retailers Internationalize - H&M - Literature review Example There are a number of reasons and motivations for the retailers including H&M to internationalize. One of these motivators is retail expansion due to saturation in the local market. Other motivators for internationalization are resource seeking, market seeking, efficiency seeking and strategic asset seeking. Resource seeking and market seeking are usually motivators for a firm’s initial internationalization strategy, while the other two are for sequential internationalization. After motivation triggers the internationalisation process, the retail firms has to study the market to be entered, so they can optimally position themselves there. Number of factors will help the firms including H&M in market positioning, thereby aiding them in carrying out the operations aptly. These typically include selecting the right target market, studying and understanding the competitive environment, then accordingly formulating steps to improve their competitive position, having a strong store brand image, and controlling the supply chain. Another very important factor that would determine success is the mode of market entry. There are a number of modes but the most common ones are licensing, franchising and joint ventures. These modes are only followed by number of retailers including H&M while expanding overseas. There are others entry options such as acquisition, mergers and contracts, but is not a part of the scope of this paper. This paper will review existing literature on reasons why retailers internationalize – Motivation for Internationalization, in brief. These are fundamentally the same for many firms, retail or non-retail. Moreover, market position that ensures that an internationalization strategy is a success in foreign shores will be discussed. Finally, how retailers internationalize or methods they use to enter new markets will also be discussed concisely. All of this will be discussed keeping in mind the practical case of the renowned fashion

Tuesday, February 11, 2020

The Effects of Economic Aid to Third World Nations Term Paper

The Effects of Economic Aid to Third World Nations - Term Paper Example This question has been repeatedly being asked and emphasized on by various scholars over a long period of period. In 1972, Papanek was the first one to develop a constructive relationship between growth and aid. In 1985, Singh also seconded Papanek that a cohesive relation exists between the economic growth and aid in Third World nations. In 1993, Synder also propagated the ideas of Papanek and Singh but taking into consideration the size of the country. In 1997, Dollar and Burnside acknowledged this positive relation on the premise that it works nicely if the country is meticulous in making policies and it also implements policies according to donor countries, policymakers in beneficiary’s countries and also considers multilateral support firms. In 1999, El-Kaissay and Fayissa profound into this thought and reap the same positive correlation. (Duc) Aids come in several forms; for instance food assistance, military aid, humanitarian emergency support, etc. The growth aid has a lways been recognized as important for helping poor nations of the world to bring them out of impoverishment. The affluent nations of the world decided to give aid of 0.7% of their Gross National Income to poor nations in 1970 as an official global development support each year. But this target has never been achieved. Regardless of the fact that countries have given billions of dollars in cash to poor countries each year they have never met the standard set by them. Some scholars believe that aid has a pessimistic affect on the development of developing countries. In 2000, Knack argued that excessive aid destroys the quality of government, exploits it, and augments the corruption in that region and thus growth is affected negatively. In 2003, Roodman, Levine, and Easterly examined a huge sample size to test the premise of Dollar and Burnside, and the result they found didn’t quite support the positive relation proposed by Dollar and Burnside. (Schoolland) Every rose has a th orn. And thus aid does not come for free. It bears an expensive price to the developing nations. Mostly, the top most condition for aid is that the recipient country must buy over expensive services and goods from the donor nations. Also, the amount of aid is planned and set by affluent countries that following their protectionist policies restrict poor nations to access the market. Most assistance does not really go to the poor nations who are in most need of it. Furthermore, huge projects or enormous striking strategies are deemed to failure to assist the susceptible as mostly, money is used the wrong way. On the contrary, it has also been observed that developing countries with strong economic policies and high-quality governmental institutions have augmented their growth with aid rather than without it. The Gross Domestic Product of countries receiving aid has increased by 2.7% per capita in contrast to countries not receiving aid, with 0.5% per capita. But, some countries who o nly received some aid have achieved a 2.2& per capita of growth. It all basically depends how the aid is utilized; a sound management and high-support by rich countries leads to 3.7% per capital Gross Domestic Product according to World Bank. (Bovard, 1996) Let’s look at the impact foreign aid has on some countries. The current experience of South Asian countries is exemplary. With foreign aid, Bangladesh has