MGT321 Assignment: What is the World Trade Organization? What is its role in the world economy?

General Instructions – PLEASE READ THEM CAREFULLY

· The Assignment must be submitted on Blackboard ( WORD format only) via allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

· Students must mention question number clearly in their answer.

· Late submission will NOT be accepted.

· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

· Submissions without this cover page will NOT be accepted.

Learning Outcomes:

1. Identify and evaluate the significant trade agreements affecting global commerce (Lo 1.1)

2. Analyze the effects of culture, politics and economic systems in the context of international business (Lo 2.1)

3. Explain the forces driving and evaluating the impact of globalization (Lo 1.3)

4. Carryout effective self-evaluation through discussing economic systems in the international business context (Lo 3.1)

Discussion Questions

1. What is the World Trade Organization? What is its role in the world economy? (minimum words: 400)

2. What is the International Monetary Fund? Discuss its relationship with the World Bank. (minimum words: 500)

Case study

Please read Case 1: “Globalization of BMW, Rolls-Royce, and the MINI” available in your e-book (International business: Competing in the global marketplace (13th ed.), at page no.625, and answer the following questions:

Assignment Question(s):

3. How do you think BMW integrates its various unique brands into a global effort that works for them (BMW, Rolls-Royce, and the MINI) across the world’s many global markets? (minimum words: 400, marks: 2)

4. What is your reaction to the global brand of BMW when you hear its name, think of the brand, and see BMW vehicles on the road? (minimum words: 400)

5. Rolls-Royce's chase of perfection drives the supreme quality, exquisite hand craftsmanship, and attention to the finest detail to maintain its global position as the pinnacle luxury automobile manufacturer in the world. How do you think the Rolls-Royce brand helps, or hurts, other BMW brands globally (i.e., BMW, the MINI)? Give arguments in support of your answer. (minimum words: 500)

6. The MINI is a unique car offering in the BMW portfolio. It has long-engaged in clever solutions and distinctive designs that have enabled terrific urban driving and have catered to customers’ individual needs. Do you agree that this is the focus for the MINI, and do you think it is working as advertised globally? Discuss. (minimum words: 500)

Answers

1. Answer-

2. Answer-

3. Answer-

4. Answer-

5. Answer-

6. Answer-

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Kingdom of Saudi Arabia Ministry of Education Saudi Electronic University

المملكة العربية السعودية وزارة التعليم الجامعة السعودية الإلكترونية

College of Administrative and Financial Sciences

Assignment 1

Introduction to International Business (MGT-321)

Due Date: 08/10/2022 @ 23:59

Course Name: Introduction to International Business	Student’s Name:
Course Code: MGT-321	Student’s ID Number:
Semester: First	CRN:
Academic Year: 2022-23-1st

For Instructor’s Use only

Instructor’s Name:
Students’ Grade: Marks Obtained/ Out of 15	Level of Marks: High/Middle/Low

General Instructions – PLEASE READ THEM CAREFULLY

· The Assignment must be submitted on Blackboard ( WORD format only) via allocated folder.

· Assignments submitted through email will not be accepted.

· Students are advised to make their work clear and well presented, marks may be reduced for poor presentation. This includes filling your information on the cover page.

· Students must mention question number clearly in their answer.

· Late submission will NOT be accepted.

· Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.

· All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).

· Submissions without this cover page will NOT be accepted.

Learning Outcomes:

1. Identify and evaluate the significant trade agreements affecting global commerce (Lo 1.1)

2. Analyze the effects of culture, politics and economic systems in the context of international business (Lo 2.1)

3. Explain the forces driving and evaluating the impact of globalization (Lo 1.3)

4. Carryout effective self-evaluation through discussing economic systems in the international business context (Lo 3.1)

Discussion Questions

1. What is the World Trade Organization? What is its role in the world economy? (minimum words: 400, marks:2)

2. What is the International Monetary Fund? Discuss its relationship with the World Bank. (minimum words: 500, marks: 3)

Case study

Please read Case 1: “Globalization of BMW, Rolls-Royce, and the MINI” available in your e-book (International business: Competing in the global marketplace (13th ed.), at page no.625, and answer the following questions:

Assignment Question(s):

3. How do you think BMW integrates its various unique brands into a global effort that works for them (BMW, Rolls-Royce, and the MINI) across the world’s many global markets? (minimum words: 400, marks: 2)

4. What is your reaction to the global brand of BMW when you hear its name, think of the brand, and see BMW vehicles on the road? (minimum words: 400, marks: 2)

5. Rolls-Royce's chase of perfection drives the supreme quality, exquisite hand craftsmanship, and attention to the finest detail to maintain its global position as the pinnacle luxury automobile manufacturer in the world. How do you think the Rolls-Royce brand helps, or hurts, other BMW brands globally (i.e., BMW, the MINI)? Give arguments in support of your answer. (minimum words: 500, marks: 3)

6. The MINI is a unique car offering in the BMW portfolio. It has long-engaged in clever solutions and distinctive designs that have enabled terrific urban driving and have catered to customers’ individual needs. Do you agree that this is the focus for the MINI, and do you think it is working as advertised globally? Discuss. (minimum words: 500, marks: 3)

Answers

1. Answer-

The WTO is the single most important international organization that was created specifically to evaluate economic relations between nations. The General Agreement on Tariffs and Trade) was completely replaced by the body in January 1995 following eight years of discussions (Hoekman & Michel, 2003). Several nations have signed and adopted in their parliaments the rules and accords of the World Trade Organization. This organization was established with the intention of expanding the infrastructure for international trade in products and services. The WTO manages a system of international trade laws, serves as a platform for drafting trade agreements, resolves trade disputes among its members, and aids developing nations in their needs. Governments that are members of the WTO make all significant decisions. 98% of global trade is represented by the WTO's more than 160 members (Hoekman & Michel, 2003). A country must agree its terms of entrance also known as admission with the Member nations and align its economic and trade measures with WTO regulations in order to join the WTO (Hoekman & Michel, 2003).

The WTO has fueled globalization, which has had both beneficial and detrimental repercussions. The evolution of world trade has been a struggle between protectionist and free trade. The organization 's activities have accelerated the expansion of international trade. Globalization has unfavorable consequences on various communities and human rights, among other adverse effects. The WTO's is good for business because it encourages free trade and reduces trade disputes, both of which are good for the world economy (Lindemann, 2014). The consequent global economic integration has improved living conditions all across the world. The majority of emerging nations have benefited from this prosperity, and in some, wages have increased significantly.   In comparison to traditional export markets, many developing nations have significantly boosted their exports of manufactured goods and services: 85% of exports from developing nations now consist of manufactured goods. Furthermore, trade between emerging nations has expanded quickly; currently, 40% of their exports are made to other developing nations (Lindemann, 2014).

Among the various WTO treaties and policies that have an impact on the world economy are those concerning intellectual property laws and investment policies (Hill, 2021). The company has the biggest influence on reducing trade barriers including import taxes and tariffs. By negotiating reduced trade barriers between nations, the WTO, which operates on the basis of non-discrimination, regulates trade (Lindemann, 2014). It lowers the cost of production, which lowers the price of finished items and lowers the cost of living. By establishing regulations that are agreeable to all nations, the WTO acts as a mediator between them. It also offers a channel for international disputes to be resolved.

2. Answer-

On July 22, 1944, the United Nations Monetary and Financial Conference, often referred to as the Bretton Woods Conference, created the International Monetary Fund (IMF) as a part of the UN system (Hill, 2021). Washington D.C., in the United States, is home to the IMF's main office (Hill, 2021). The IMF's corporate headquarters is in Washington, D.C., in the United States. According to its Articles of Agreement, the IMF is tasked with fostering global monetary collaboration, promoting equitable global trade growth, fostering exchange rate stability, aiding in the creation of a multilateral finance system, and making resources accessible to its members who are having trouble with their balance of payments (Sobhani, 2019). The IMF is in charge of regulating the exchange rate and global payment systems that enable exchanges of goods and services between citizens of various countries. Each member nation's monetary and financial prospects are closely monitored by the IMF, which also regularly engages in policy discussion with a participating country, often once a year, to analyze its economic conditions and make recommendations for policy. Based on data from individual engagements, the IMF also assesses trends and prospects at the international, regional, and local levels (Sobhani, 2019). The IMF offers technical assistance to help members improve their capacity to create and carry out successful policies.

The IMF and World Bank are still among the most influential and powerful organizations when it comes to setting standards, organizing meetings, accumulating knowledge, and influencing the global financial and development environment. The World Bank Group and the International Monetary Fund are two intergovernmental organizations founded in 1944, have a significant impact on the development and monetary systems of the world. They are also referred to as the Bretton Woods Institutions (BWIs), and their original purpose was to restore the post-World War II international financial system (Hill, 2021). The World Bank Group and IMF headquarters are located in Washington, D.C., in the United States, where their Annual Meetings take place every second and third years, respectively (Hill, 2021). Their regulations, priorities, and programs have changed significantly over time, as evidenced, for instance, by the crucial role they played in developing the Bretton Woods System's fixed exchange rate system and their wide presence of a floating exchange rate rule following the system's breakdown in 1973 (Bretton Woods Project, 2019). 

Their primary responsibility is to assist member nations in pursuing or achieving economic growth and development. Their primary goal is to ensure steady worldwide economic expansion while simultaneously guaranteeing that underdeveloped countries receive top-notch technical assistance. The two organizations have a big impact on worldwide economic strategies and goals. Due to the member states' ability to influence economic policy, their financial structures have grown tremendously, economic inequalities have lessened, and the growth of public borrowing has also lessened (Bretton Woods Project, 2019). Both the World Bank and the IMF have distinct mandates that allow them to contribute in a variety of special ways to the sustainability of the international financial and monetary system and to the development of long-term economic growth on an international market. The preponderance of their operations is directed toward developing and growing the economies of their participating countries.

3. Answer-

BMW is a well-known brand among premium cars and is a global leader in the automotive industry offering its customers not only luxury vehicles but also financing, on-demand modern vehicles, and driver assistance services for several decades. The company is a customer-centric through producing vehicles under the Rolls-Royce, BMW, and MINI brands for a variety of uses, including the utmost in luxury and comfort, high-performance vehicles, and offering comfortability (Hill, 2021 Pp. 625). In terms of organizational culture, BMW consistently aspires to be innovative in its primary business operations as a market innovator. The primary components and drive behind BMW's continuing success are its products, which are what customers choose to spend their income on. When buying a car in the price range that BMW is in, the products have arguably the biggest influence on the customer's decision. BMW therefore takes seriously the development of its products. In addition to an engineering center in Munich, a designing workshop in California, and a project management team in Japan, BMW has other research and product innovation centers located across the world.

The massive variety of products offered by the BMW is one of their most attractive features. The company attracts to consumers from a variety of target segments, including less-wealthy customers, and offers models that range from the most premium and pricey to more inexpensive. The reason BMW manages to incorporate so many of their innovations and advancements into their vehicles and manages to garner the public's awareness and approbation, which in turn boosts its accomplishments, is because BMW invests about 25% of their revenues on research and development (Kukkamalla, 2020). The business has been successful in establishing a reputation for its high-performance and high-quality engineering. BMW has also always placed a strong emphasis on introducing vehicles that are superior to those of its rivals in terms of performance and quality. The 1, 3, 5, 6, and 7 BMW Series has distinctive qualities and provides a distinctive driving experience. Regardless of series of BMW someone could be driving, countless consumers emphasize how amazing the car feels to drive (Ramzi, 2016). In order to generate value, competitive advantage, and development significance, BMW employs a number of marketing techniques that are intensively targeted at the relevant luxury groups. Even if marketing fundamentals are universal, BMW's methodology to a global advertising strategy emphasizes the need of outstanding adaptability. BMW is a reputable firm with merchandise for each and every segment of the market and a reputation for not compromising routines.

4. Answer-

The first things that come to me when I hear the term BMW are luxury, performance, and extra costs. Drivers have a virtually limitless number of reasons to choose a BMW over a car from some other manufacturer since it offers the better results, safety, and overall effectiveness of any luxury automobile brand. Once a customer acquires the first BMW, they do not ever desire to purchase another car from a different manufacturer. The company, however, is focused on satisfying the needs of its target market. BMW believes it is morally acceptable in maintaining its current design philosophy, and they seem to be under more demand. Through is various series of model, the MBW has tremendous variety of options, upgrades, and additional features available to customers representing one of the best things about a BMW. Because these are luxury vehicles, every last detail has been taken into consideration to make sure customers are comfortable. 

When I think of the IBM brand what comes to mind is the nature of innovation, high cost of maintenance and the name itself. The company builds precise, robust, and efficient engines. As a result, frequent maintenance is essential to keep the vehicle in good shape. And compared to a regular automobile like a Toyota or Nissan, the expenses of such upkeep build up far more rapidly. The emphasis is on a new definition of premium that places sustainability at the center of the entire production process. BMW is a proud member of a distinguished motorsports legacy and represents great performance driven by enthusiasm. At the highest possible level, the concept of efficient dynamics is closely associated with both power and strength.

The driving force behind BMW is genuine driving enjoyment. They keep inventing it in order to make sure it never stops even more active, effective, and intelligent vehicles. Through driving on the road, the drivers may seem to be talking about features like the flexible cruise control, fully fabric seats that can be adjusted, a Bang & Innovative features audio system, a computer-like amusement and media play station, carbon fiber components, and even infrared sensing devices that allow them view pedestrians at night mostly on entertainment console's display. The extraordinary history of reinventing is the source of this fervent confidence in the future for BMW. BMW produces more than just automobiles. Innovations made by the company and remarkable design stimulate, arouse, and generate feeling. BMW's aggressive, athletic power, ground-breaking technology, and breath-taking design work together to offer the ultimate driving experience.

5. Answer-

Royce built its status as the top producer of extremely luxurious automobiles in the world by adhering to a philosophy that prohibited cutting corners when it came to quality. This is an approach to reasoning that it infuses every part of every vehicle the company manufactures, as well as their own internal working procedures and those implemented by their reliable suppliers (Yadav, 2020). The business has numerous attributes that place it as the top brand worldwide. With their exceptional automotive designs and consistently strong performance every year, the corporation is first and foremost connected with a great brand image. The business has a long history as a family business. For its potential customers, the corporation offers the best-designed cars. The organization's performance is being improved by the skilled labor force that the corporation employs (Yadav, 2020). The business has finally created the idea of a global presence. The business has established top-notch operations in more than 45 countries, serving the entire planet (Yadav, 2020).

The Rolls-Royce 's inventions the BMW brand (both the BMW and the MINI) to maintain its position as the world's top manufacturer of luxury vehicles. This concept, which always strives for advancement in the Rolls-Royce brand, has an important influence on every one of BMW's other product offerings. Furthermore, it spreads the notion that all BMW brands products, regardless of the brand customers decide to buy, are luxurious. As a result, more customers globally are motivated to purchase BMW vehicles, if only for the elegance they offer. The many BMW brands may see both positive and negative repercussions from the Rolls-Royce name. The Rolls-Royce brand may increase consumer confidence by showcasing its dedication to quality through the highest standards of dependability, elegant hand workmanship, and devotion to all of their designs (Hill, 2021).

Despite its best qualities, the corporation has a number of shortcomings, first of all, the corporation serves as a prestige symbol for the upper classes of society. The company is sometimes referred to as the car of the wealthy or powerful people since it embodies qualities of elegance and greater status, and not everybody is able afford to own these vehicles. Secondly, the business has an evolutionary layout that dates from a previous era. People believe that the corporation is simply adding new technologies to its older car models. Additionally, the business charged outrageous prices that put one group of customers out of its grasp. Further, the business is growing overly dependent on a single customer group's consistent purchasing behavior. They fall short in attracting customers who fit all the demographics criteria (Shivaranjani , 2021).

When BMW bought Rolls-Royce Motors in 1998, it not only acquired the Rolls-Royce brand but also the Spirit of unique design. Rolls-Royce sales have increased by 31% in 2021 under BMW ownership, with both the Ghost and Phantom receiving the majority of the orders (Tim, 2022). As soon as they introduce the brand's first entirely electric automobile in the market, Rolls-Royce intends to continue this tradition. To this day, Rolls-Royce upholds its illustrious reputation. Rolls-Royce maintains its position as the gold standard for supreme luxury with a variety of eye-catching vehicles, coupes, and convertibles.

6. Answer-

The BMW Company's BMW-MINI is a brand that appeals to customers who wish to purchase a product from the brand but at an affordable pricing, with style, and in a small package. As suggested by its name, MINI is a small car that is also a visual treat with a sporty, elegant, and vivacious appearance. It was founded in 1959 and over the years has grown to become a highly coveted brand, not just among average consumers but also among celebrities (BMW Group, 2022). Since BMW-MINI has endured the test of time, it is now the company's flagship product, appealing to consumers interested in purchasing compact cars. MINI focuses on offering consumers affordable products that satisfy all of their needs for attractiveness, driving dynamics, and class. The car's small size and other attributes including its inexpensive price, modified engine, and low consumption of fuel makes it an appealing product for consumers to buy (BMW Group, 2022).

The fact that the product provides a convenient fix for all of the customer's automotive problems has a big impact on how they view the product. In addition to its characteristics of low fuel consumption, affordable price, and scenic views, its durability as a competitive product for the consumer can be characterized as one of its strengths. Additional penetration into international markets, particularly those in Asia and beyond, is one of its opportunities. As opposed to radical technologies, which establishes market opportunities or values, sustainable innovation expands current markets with particular possibilities, as MINI has accomplished by adding new models to the original BMW-MINI brand portfolio, including the MINI Cooper. Due to the company's appeal, BMW has maintained the brand, putting economic growth ahead of transaction costs (BMW Group, 2021).

As a manufacturer of compact-sized automobiles, BMW-MINI categorizes its market and appeals to consumers looking to purchase BMW-branded vehicles at a discount. The MINI addresses all consumer issues, including those related to commuting, fuel costs, and excessive prices, with its affordable price, great fuel efficiency, and small size. Additionally, it offers an online unique selling proposition by enabling test drives and vehicle customization on its website to draw potential customers (BMW Group, 2022). As seen by the introduction of the MINI electronic car, MINI consistently continues to innovate its production line and expands its model line-up. Additionally, it offers test drives to entice customers to reserve newly released models as soon as they become available. It sets pricing in a way that encourages individuals to purchase the product since they are affordable for a name-brand vehicle and for the various versions, that are sufficiently differentiated to suit a customer's purchasing power.

Since MINI was designed to fulfil the needs of certain customers rather than being aimed at average users, according to (Pratap, 2019), the marketing strategy concentrate more of an emphasis on these target groups. BMW as the main contributor focuses on micromarketing which attempts to promote the MINI various vehicles rather than mass marketing strategies (BMW Group, 2021). They are worn out by the constant marketing that quality of products marketer’s target consumers with through numerous platforms on a daily b

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