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    What are the firm's activities outside the US?

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    Select a US company with global operations.
    - What are the firm's activities outside the US?
    - Identify which economic concepts, such as comparative advantage, apply to your firm.
    - Explain how these economic concepts can be used to address the firm's problems and opportunities?
    - Identify which economic and political policies affect your firm and explain how they impact business decisions.
    - How does your firm use technology to strategic advantage?
    - Discuss the impact of globalization on the firm. Are there any effects on its cost structure, markets, currency risk, and overall strategy? What is the definition of globalization?

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    Solution Preview

    The US company selected for this assignment is Ford Motors. The company has manufacturing units and distribution network in numerous countries across the globe for manufacturing and sales of its entire automobile range. For the purpose of this assignment, we will select one of the global operations of the company in India. The company has a big manufacturing plant in this country to not only serve the domestic demand, but also to increasingly meet the demand from other countries in the region as well as outside of this region, especially for the smaller cars to Asian and African countries

    One of the major economic concepts that apply to Ford's operations in low cost nations such as India is comparative advantage. As we know, many global corporations are setting up operations in nations such as India and China to take advantage of the low cost manufacturing options due to ample availability of qualified labor force and other resources. For example, Ford is trying to obtain comparative advantage in terms of costs by setting up global manufacturing hub in India.

    As we know, the automobile industry has suffered due to recession across the ...

    Solution Summary

    Select a US company with global operations.
    - What are the firm's activities outside the US?
    - Identify which economic concepts, such as comparative advantage, apply to your firm.
    - Explain how these economic concepts can be used to address the firm's problems and opportunities?
    - Identify which economic and political policies affect your firm and explain how they impact business decisions.
    - How does your firm use technology to strategic advantage?
    - Discuss the impact of globalization on the firm. Are there any effects on its cost structure, markets, currency risk, and overall strategy? What is the definition of globalization?

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