Final exam Essay Example | Topics and Well Written Essays - 2000 words

Final exam - Essay Example These Asian economies enjoy a number of natural and artificial factors. These factors have positioned both China and India at a far much better place to benefit from the idea of globalization. The goodwill portrayed by the political leadership has threefold accentuated the embrace and utilization of globalization to its best. Cummings Inc, being company based in Columbus and majoring in production of world class engines that enable power and run world economies, stand a chance to feel, in full force, the impact of Indian and Chinese presence in the American Market. Cummings Inc is global and this directly translates that it is competing for the same resources and same market which India and china are trying to venture in. It is noted with a lot of concern that China and India have penetrated nearly in all parts which were predominantly American markets and hence companies in America, including Cummings Inc has to review its strategies for it to compete effectively in the 21st century market. Opportunities presented by Influx of Indian and Chinese Activities to Cummings Inc Outsourcing China and India account for approximated two billion of the world’s population. Outsourcing has been very common of late. Many USA companies are finding it far much cheaper to get work done in India and china than in USA. This is business and Cummings Inc has to adapt to these radical changes. ... These governments are doing anything possible to see increase of job opportunities. As mentioned in the earlier, they hold a large population and this population need food, shelter and clothing. Life standards need not only to be achieved but also guaranteed and of quality. The political leadership in these two countries knows that it’s only through a better life that stability can be maintained. For this reason, they endeavor to welcome any investor to invest in their labor affordable market. Cummings hence has an opportunity to save a lot if at all it opts to shift some of its operations in China or India. In fact, it is very viable. These countries are considerably technologically sound and as one of the business activities of Cummings Inc is to design, then the designs can be taken to china or India for production. Market Cummings makes products which drive economies. China and India presents the largest market for any product. They are growing economies and definitely nee d these products from Cummings. The international agreements signed for doing business will enable Cummings to export its products with a lot of ease to China and India. It presents a rare opportunity for exponential kid of growth. Recommendations to the Company Firstly, I recommend that Cummings Inc to outsource in India or China. The standard of living in these countries is relatively low and hence Cummings will benefit from a reduced cost of production. A low cost of production directly translates to a stiff competition of the Cummings’ products in the global market. Cummings Inc ought to open up more dealer outlets of its products in China and India. This is beneficial in a way that the large population provides a ready market. The industrial growing state of these two countries