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MULTICULTURAL CONTEXTS

GUIDE 1: GLOBALIZING BUSINESS

ZULMA YAZMN GARZN NIVIA

TUTOR: KELLEY CRITES.

FEAV

Modern Languages

Group 1 First cycle

Bogota February 2013

ABSTRACT This document accounts for the development of the activities proposed for the Multicultural contexts block in its first guide, which aim to understand the characteristics and differences of International Business (IB) and Global Business (GB) as well as the different perspectives in which Global Business is understood nowadays and the role of emerging economies in the globalization process. KEY WORDS Globalization, Emerging Economy, International business, Global business, Institution-Based view, Formal institutions, Informal institutions, Resource_Based view. MNEs, FDI, GDP.

CONTENIDO
ACTIVITY 1 ............................................................................................................. 4 1.1 MIND MAP ..................................................................................................... 4 1.2 REPORT ........................................................................................................ 5 ACTIVITY 2 ............................................................................................................. 7 ACTIVITY 3 ............................................................................................................. 7 REFERENCES ........................................................................................................ 8

ACTIVITY 1
1.1 MIND MAP

1.2 REPORT
COLOMBIA RETAIL FOOD MARKET OUTLOOK

After years of struggling against its unfavorable past, international companies now nod to the investment in Colombia. In fact, in 2012 Colombian Foreign Direct Investment (FDI) reached a record level of US$16 billion showing a growth of 3.9% in its Real Gross Domestic Product, (GDP) the same year. These changes are explained by the Free Trade Associations (FTAs) signed between the country and main markets such as the US, EU, and Canada among others. Colombia being the third most populated community in Latin America, its domestic demand makes it an attractive market. No surprisingly, Colombia belongs to the CIVETS1 (Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa) emerging economy group which experts have consider very promising due to its dynamic economy and young growing population. In numbers, Euromonitor2 anticipated retail sales in Colombia of US$17.2 billion in 2012 and expected them to increase to US$20.3 billion by 2017 ranking Colombia as the fifth largest packaged food market in Latin America and the 25th largest retail food market in the world. The growing trend towards convenience and local stores in grocery retailing is reflected in the expansion of larger chains in small formats by opening new convenience store outlets. Examples include xito Express, Carulla Express, Metro and OXXO which belong to bigger super and hypermarkets. To illustrate, Grupo xito, accounted in 2012, 427 retail outlets in 53 cities. Colombian rising market for value-added food products seems to ensure room for more supermarkets promises Eric Basset, President Cencosud Colombia.

The CIVETS are six favored emerging markets countries - Colombia, Indonesia, Vietnam, Egypt, Turkey and South Africa. 2 Euromonitor International Ltd is a privately owned, London-based market intelligence firm, providing market research, business intelligence reports, and data to industry.

Resources consulted: Food Export association of the Midwest US. Colombia Country Profile.

http://www.foodexport.org/Resources/CountryProfileDetail.cfm?ItemNumber=1025 FreshPlaza: Global Fresh Produce and Banana News. "There is room for more supermarkets in Colombia". http://www.freshplaza.com/article/113407/There-is-room-for-more-supermarkets-inColombia USDA Foreing agricultural service. Colombia retail food sector.

http://gain.fas.usda.gov/Recent%20GAIN%20Publications/RETAIL%20FOOD%20 SECTOR_Bogota_Colombia_10-6-2010.pdf Group Casino. http://www.groupe-casino.fr/en/Colombia.html Wikipedia. CIVETS. http://en.wikipedia.org/wiki/CIVETS

ACTIVITY 2
The debate will be presented in the third tutorial.

ACTIVITY 3
VENN DIAGRAM GLOBAL BUSINES PERSPECTIVES INSTITUTION-BASED VIEW (IBV) SIMILARITIES

RESOURCES-BASED VIEW (RBV)

In both, commercial transactions benefit from or are affected by Free Trade Alliances (FTAs). Both are regulated by external influences. Both require a differentiation feature to be successful.

Firm performance is determined by the formal and informal institutional frameworks governing firm behavior around the world. Copes with external environment. Success depends on the competition conditions. Strategies are generic. Firm market is restricted by institutions. Individualistic kind of societies has more opportunities to succeed.

Firm performance is determined by their environment and international resources and capabilities. Copes with the firms internal resources and capabilities. Success depends on the own competitive advantages. Strategies are specific. Firm market is global. Dont depend of the kind of society but on their own capabilities.

DIFERENCES

REFERENCES

Peng, Mike W. Global 2010 edition. South western USA. Cengage Learning. Part I Chapter 1,GLOBALIZING BUSINESS.pages 2-17 Globalization: What Does It Really Mean? (2010) at http://www.youtube.com/watch?v=LtmvksvSvtc

USLegal ,Free Legal Dictionary(2009) Global Business at http://definitions.uslegal.com/g/global-business/