Jcb in India Essay
Question1 What was the strategic rationale underlying JCB’s entry into India in 1979 and China 2005? Given that the capital to fund expansion is limited, does it make more sense for JCB to expand its presence in these markets, as opposed to more developed markets , such as those of Western Europe? Answer 1 From reading the case study it can be stated that the choice for JCB entrance into the Indian market was due to its construction market. JCB believed that the Indian markets were deemed as being favourable for investments and cold benefit then in the long to a greater extent. The Managers also believed that by entering the Indian market than do competitors they would gain an advantage rather than waiting for when this growth …show more content…
Cyreen M St Louis Graduate Gateway Seminar in Global Business and International Trade Final Examination April 30, 2012
Hyundai and Kia
Question 1 Explain how the rise in the value of the South Korean currency, the won, against the dollar impacts upon the competitiveness of Hyundai and Kia’s exports to the United States. Answer 1 Kia and Hyundai are the fastest growing car makers in Korea. Their prices are also lower than those of Toyota and Honda. When the value of the won rose it simply means that the amount of dollars will be less; hence, having the dollar at a high rate will demonstrate profitability within the US Market. The impact in the competitiveness of the Hyundai and Kia’s exports is that fewer profits will be made. This rate of exchange of both the won and the dollar has an intense effect on profitability for the reason that these cars incur cost when they are ship out from Korea to the US. Therefore, in order to maintain profitability by both Korean car makers, they will have to increase their cost per car in the US. Additionally, opening car manufacturing plant within the US will decrease the cost of shipping.
Question 2 Hyundai and Kia are both expanding their presence in the United States. How does this hedge against adverse currency movements? What are the drawbacks of such a strategy? Answer 2 By setting up car