ASSIGMENT 3

1) List four major reasons why some countries in Europe are struggling economically as
compared to countries in Asia. What is the strategic implications for the companies?

The four major why some countries in Europe are struggling economically as compared to
countries in Asia are to improve market globalization, investment, technology and production.
The strategic implications for the companies are Free trade brought about by economic
globalization provides an opportunity for developing countries to participate in international trade
without tariffs and quota. The independent countries are import and export goods without many
restrictions. Market expansion occurred under the trade freedom. Many countries take part in or
to open their markets to the developing and developed world. Labour flows are becoming
increasingly easy and widespread. The population of developing countries is poor and densely
populated flow to the more developed countries are less population. Facilities transport and
information technology enables the flow of labor occur easily as people from Asia to countries in
Europe and the United States . International labor flows are beneficial to both parties.
Encourage competition among countries in the world. They are racing to produce goods
and services to be marketed in the global. The country which managed to reduce the cost of
goods production will succeed in this competition. Product Quality Improvement also occurred
through competition to win merchandise and get a place in the market for high quality and low
priced global. Good is better place. Quality can be improved through research and development
of products, technologies and production processes.