Tag: Differences

  • Risks in International Business

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    Just as there are reasons to get into global markets, and benefits from global markets, there are also risks involved in locating companies in certain countries. Each country may have its potentials; it also has its woes that are associated with doing business with major companies. Some of the rogue countries may have all the natural minerals but the risks involved in doing business in those countries exceed the benefits. Some of the risks in international business are:

    (1) Strategic Risk

    (2) Operational Risk

    (3) Political Risk

    (4) Country Risk

    (5) Technological Risk

    (6) Environmental Risk

    (7) Economic Risk

    (8) Financial Risk

    (9) Terrorism Risk

    Strategic Risk: The ability of a firm to make a strategic decision in order to respond to the forces that are a source of risk. These forces also impact the competitiveness of a firm. Porter defines them as: threat of new entrants in the industry, threat of substitute goods and services, intensity of competition within the industry, bargaining power of suppliers, and bargaining power of consumers.

    Operational Risk: This is caused by the assets and financial capital that aid in the day-to-day business operations. The breakdown of machineries, supply and demand of the resources and products, shortfall of the goods and services, lack of perfect logistic and inventory will lead to inefficiency of production. By controlling costs, unnecessary waste will be reduced, and the process improvement may enhance the lead-time, reduce variance and contribute to efficiency in globalization.

    Political Risk: The political actions and instability may make it difficult for companies to operate efficiently in these countries due to negative publicity and impact created by individuals in the top government. A firm cannot effectively operate to its full capacity in order to maximize profit in such an unstable country’s political turbulence. A new and hostile government may replace the friendly one, and hence expropriate foreign assets.

    Country Risk: The culture or the instability of a country may create risks that may make it difficult for multinational companies to operate safely, effectively, and efficiently. Some of the country risks come from the governments’ policies, economic conditions, security factors, and political conditions. Solving one of these problems without all of the problems (aggregate) together will not be enough in mitigating the country risk.

    Technological Risk: Lack of security in electronic transactions, the cost of developing new technology, and the fact that these new technology may fail, and when all of these are coupled with the outdated existing technology, the result may create a dangerous effect in doing business in the international arena.

    Environmental Risk: Air, water, and environmental pollution may affect the health of the citizens, and lead to public outcry of the citizens. These problems may also lead to damaging the reputation of the companies that do business in that area.

    Economic Risk: This comes from the inability of a country to meet its financial obligations. The changing of foreign-investment or/and domestic fiscal or monetary policies. The effect of exchange-rate and interest rate make it difficult to conduct international business.

    Financial Risk: This area is affected by the currency exchange rate, government flexibility in allowing the firms to repatriate profits or funds outside the country. The devaluation and inflation will also impact the firm’s ability to operate at an efficient capacity and still be stable. Most countries make it difficult for foreign firms to repatriate funds thus forcing these firms to invest its funds at a less optimal level. Sometimes, firms’ assets are confiscated and that contributes to financial losses.

    Terrorism Risk: These are attacks that may stem from lack of hope; confidence; differences in culture and religious philosophy, and/or merely hate of companies by citizens of host countries. It leads to potential hostile attitudes, sabotage of foreign companies and/or kidnapping of the employers and employees. Such frustrating situations make it difficult to operate in these countries.

    Although the benefits in international business exceed the risks, firms should take a risk assessment of each country and to also include intellectual property, red tape and corruption, human resource restrictions, and ownership restrictions in the analysis, in order to consider all risks involved before venturing into any of the countries.

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    Source by Sidney Okolo

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  • The Husband and Wife Relationship – Understand the Dynamics

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    The relationship between a husband and wife are usually complex, and many married couples do not understand the dynamics of the relationship they are in this is the cause of many failing relationships. For a really strong marriage they both need to understand how the dynamics of a husband and wife relationship works. The key to the question of dynamics is to appreciate just how men and woman are poles apart not only physically but more importantly emotionally and mentally.

    These differences are best illustrated when you consider the way a husband and wife relationship approaches the matter of problem solving, which shows how they approach problems in completely different ways

    The wife will typically talk about the problem with friends and family alike, explore different angles for a solution then combine that research with input from her group of family and friends. This may take some time because women in general like to discuss various solutions and how they feel and relate to the problem, before deciding on any one answer.

    The husband on the other hand is more likely tom be a solitary thinker and by virtue of that will be unlikely to discuss the problem with anyone till he has decided on the solution to the problem.

    In the husband and wife relationship, problems can be caused by their opposite approach to problem solving, the husband could think that she is taking the problem lightly by talking too much to her friends and family when in his opinion she should be thinking rather than talking about the solution. Conversely the wife may be concerned that he is not addressing their problems because he is not talking about it, when in reality the reason he is not talking about it is that it is constantly on his mind but he has not yet come up with an answer to discuss.

    Some of the time a wife can talk about a problem she may have, simply to vent her feelings about a certain matter, to lessen the tension they feel rather than to get an opinion on how to solve the issue. In that way she express her thoughts in front of her friends who in the main will empathize with her while not necessarily offering their opinion as to the solution. Men on the other hand rarely talks about a problem unless he wants advice or help to reach a solution to the problem

    The danger is in this situation is that a husband might give his wife his considered opinion as to the solution to a problem, thinking that he is solving things in the way he thinks he is expected to, while his wife is thinking that he does want to listen to the problem and just giving an answer to put an end to the matter.

    Though not totally accurate the above example illustrates how the usual differences between men’s and women’s approach to problem solving work out. Understanding they way in which the different genders react can help to stop arguments about the way things are done, consider your partners needs before you act.

    The Husband and wife relationship understand the dynamics and you will builder a stronger and longer lasting relationship.

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    Source by Tom Janic

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  • Multi Level, Affiliate, Joint Venture, or Network Marketing: What’s the Difference?

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    Have you been online and noticed all the ads and “hoopla” about Multi Level Marketing, Affiliate Marketing, or Joint Venture (JV) Marketing and wondering what the difference is? These three terms alone are everywhere, especially when it comes to making revenue online, and are synonymous with the term Network Marketing, where we all “network” with each other to make sales conversions.

    There are many terms and confusing explanations. Here’s my view.

    Multi Level Marketing may also be called Direct Sales Companies. A few of these that come to mind are companies like, Amway, Mary Kay, thirty-one, and Tupperware. These companies build their businesses by recruiting sales associates, or independent consultants, to join the “team” under them.

    The associates in turn recruit others to sell the products, and recruit consultants likewise. Their commissions are paid on a tiered scale. The amount of your pay depends on the place you’re at in the company and how many recruits you have under you. The higher your level in the company the more percentage of commissions you take on your sales and on the associates under you.

    Some may get the MLM confused with a pyramid. Here’s the difference: MLM’s have a legitimate product to sell you, and have low enrollment fees; a pyramid has high enrollment fees, and does not have a product to sell you. Plus, pyramids are illegal.

    Affiliate Marketing brings to mind companies like Amazon, ClickBank, Google AdSense. These type of companies have established sites with vendors already in place, where you can sign up as an affiliate, promote vendor products and be compensated for it.

    Joint Venture products brings to mind companies like Dow Corning (Dow Chemicals and Corning), Sony Ericsson (Sony Corporation and Ericsson Mobile Phones). With JV marketing you are joining with a partner to develop and/or promote a product. Another term that is used is “co-venturing.” These companies share expenses, revenues and assets.

    Some say that MLM’s, Affiliate and JV Marketing are the same. I feel that there is a slight difference between the three. Again, here’s my view.

    To recap:

    • With MLM’s you are recruiting associates, or consultants under you, while selling products.
    • With Affiliate Marketing you are taking a product that has already been developed and are helping someone else promote it, while sharing commissions on the sold product.
    • With JV Marketing you are joining with a partner to develop, promote, and sell your product, while sharing expenses, revenues and assets.
    • These can all fall into Network Marketing because you can “network” with others to bring about your results.

    Whichever marketing strategy you use is all up to your individual preference and gifts. Now that you know the differences, find the ones you like, and start generating your revenue! There are more opportunities than you can imagine.

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    Source by BG Jenkins

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  • Physical Therapy and Sports Medicine – Know the Differences

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    It isn’t unusual to use the terms sports medicine and physical therapy interchangeably. However the two aren’t exactly the same things even though you may find yourself the patient of both fields at the same time.

    While compatible, the difference between the two branches of medical discipline is clear. Both are effective for treating injuries, diseases and disorders of the muscle and skeletal systems of the body and both are useful for the prevention of future injury or disease symptom reoccurence. By taking an individual look at both types of medical assistance, you will soon see the differences between physical therapy and sports medicine.

    Let’s take a look at the field of physical therapy first. Unlike sports medicine, physical therapy as a whole is devoted to correcting any injury, disease, or disorder of the bones and muscles that can be treated with non invasive techniques. The focus is to provide patients with relief from pain, improve their muscle, joint, and bone function, while providing techniques the patient can use on their own for additional healing. The primary tools of a therapist are good diagnosing and evaluating skills, knowledge of the musculoskeletal system, and knowledge of which therapy is effective for each situation.

    One large difference between the two is that physical therapy doesn’t only deal with sports related injuries or problems. Physical therapists can choose to specialize in their careers with emphasis on things like pediatrics, geriatrics, and neurology. Other areas of expertise included in physical therapy are sports, cardiovascular sciences, and occupational therapy.

    When you are looking at the differences between these two healing arts you certainly can’t overlook sports medicine. The type of medical discipline is solely used for sports related injuries and disorders. While sports physical therapy techniques are commonly used in addition to sports medicine, sports medicine may involve surgeries, procedures, and medications not used in physical therapy. Sports medicine practitioners also can have specialty fields as well. Orthopedics and skeletal emphasis are common. Advanced study of how long term sporting activities and treating sports related injuries are always a part of this particular discipline.

    Understanding the difference between physical therapy and sports medicine may be key to determining how to best treat your physical problem. While they can and are commonly used together, each one has its own distinct benefit. Your medical care team can further help distinguish the two and point you in the right direction in terms of your health care needs. The important thing is take care of any injury, sports related or not, to ensure your body’s function in the years to come.

    The difference between these two medical approaches is obvious. Although the two are often used together, each one has its own purpose and uses. Your doctor can give you advice on which specialist is right for your needs.

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    Source by John Groth

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