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Doing Business Internationally

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After 1980, most countries began experiencing globalization in business that allowed most local companies to participate in the international trade. The international trade allowed these companies to expand their markets and produce goods in large scale. This also allowed companies to reduce their costs of production, prices of their finished products and maximize on its profits in a situation known as economies of scale. This also boosted the American economy as the exports increased by 78% and the imports by 77%. This also created more job opportunities in America apart from increasing the country’s revenue and gross domestic product by billions of dollars (Ritzer, 2009). This paper shall discuss on the Siemon Company, its activities in the global market, how the firm uses technology to its competitive advantage, the policies affecting the company and the benefits of globalization to the company.

The Siemon Company is a private family owned company that manufactures and designs coupling and network cabling devices (Siemon, 2011). Carl Siemon senior, who passed it down several generations found the company in 1903. The company has its headquarters in Connecticut, USA.  Currently, four brothers own this company with another Carl Siemon as the Chief executive officer and the president of the organization. This company has offices and several business partners in Europe, Asia, America, Africa and other continents all over the world.  The company deals with supplying of network cables. The company produces high quality copper and fiber network cables that serve many profit-making enterprises, government and other industries across the globe. The company also has the eminence of extensively supporting their enterprise customers locally through extended customer service around the world. Over the years, business partners have been helpful enough and made this company compete effectively over the global market. This made the company win most awards and succeed on most international markets.

Adventages of the company

The company’s comparative advantage is the innovative production of next generation network cables, which also provide solutions to problems that may arise in current or previous generation cables. The company has actually adopted innovation as one of its policies in production of its goods. This adoption has made the company to fully satisfy their customers because they project the possibility of an error in their products and find a solution to it before the customers realize (Siemon, 2011). In this case, the company is able to produce high quality network cables to their clients.

 The company is also specializing in extension of customer services to the local enterprises. This way the consumers of its products know how to use the products with much efficiency. Therefore, the company has fully satisfied the needs of its clients and eliminated threats to its products. This has also increased the company sells and boosted its corporate image all over the globe. Therefore, the customers can easily identify the company’s products and established loyalty to the company, making the company reliable all over the globe. The company has also solved its human resource problems through partnership with several local companies. However, it has established partnership with some international companies

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As Luo (2000) clearly points out, there many international policies that affect the Siemon company of varying nature in different countries across the globe. Over the years, the company faced many antidumping duty orders from most industrialized countries where it is operating. Most industrialized nations operate using ultra modern technologies. Therefore, some industrialized countries will not allow the company to supply outdated technologies to their markets. Thus, this forces the company to stop production of unsuitable technologies and look for markets in countries that find some of its earlier products valuable (Brake & Walker, 2004). However, with employment of suitable technologies and innovation the company is able to avoid such scenarios.

Similar to other most companies, Siemon encountered some government bureaucracy in registration, licensing and acceptance of the company in third world countries’ market. Ritzer (2009) argues that third world countries have long procedures that take much time before the company is registered. It may take up to six months in some countries before a foreign company is registered or the other ethical dilemma of bribing some politicians in such countries so that they may hasten the registration process. This is also in violation with the United States legislations of how companies should behave. Therefore, to curb this problem, the company is forced to go into partnership with companies that already exist in the market in such countries. The company has achieved this through buying part of shares or buying the entire company. Siemon has benefited much from its partnership with Mart, which has developed super programmes that has made the company beat its competitors in the global markets and have more buyers of its products.

Globalization is a term coined by the International Monetary Fund to describe the situation where countries around the world permit the increase inter-border transactions and mobility of factors of production for the sake of economic development through removal of trade barriers like the embargoes and high tariffs among others (Ritzer, 2009). Globalization has helped the company reduce its costs of production due to reduced transportation costs and buying of raw materials in bulk. It has also made the company expand its markets and exploit new opportunities in rapidly growing global markets like China. The Siemon uses the currency of the countries that it operates in and uses the US dollars in most international transactions because it is an internationally accepted currency. International trade has really shaped the company’s operation since the 1960’s and it has set its objectives to meet the international standards.

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