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Nokia Case Essay

747 words - 3 pages

Suggestions for answering the questions
1. What are the trends in the mobile handset industry? What is Nokia's strategy and how has globalisation changed its way of operation?
Where is the market for mobile handsets? In the developed markets? In the emerging economies?
What is the nature of demand in these markets? What kinds of handsets do people want?
What are the costs of manufacturing? How can these costs be reduced?
Has globalisation shifted economic activity between and within regions? In what way?
Look up a concept called "value chain". Is it relevant here?
Nokia opened its factory in Germany in 1987, why do you think it made that decision then and what about the costs ...view middle of the document...

Examples of (a) the backlash against capitalism/rekindling of nationalism and (b) increased protectionism of high-demand resources:
• US hostility toward an attempted takeover of the British P&O by Dubai Ports in 2006
• Nationalization of energy resources in Venezuela

Benefits of globalism
Access to more markets
Growth of developing economies
Opportunities for flexibility and efficiency
Opportunities for small and medium-sized enterprises (SMEs)
Greater international investment by global companies means greater transfer of financial, technological, and managerial resources around the world. In turn, the latter leads to the growth of developing economies, which opens up potential markets and locations for operations for global companies. As they are no longer tied to specific locations and can locate their activities in the most suitable areas, the companies have opportunities for flexibility and efficiency.

Globalization of Human Capital
Increasing trend in the offshoring of manufacturing jobs and outsourcing of white-color jobs
Prediction that 3.3 million U.S. jobs in service sector may be lost/outsourced by 2015
The world’s human capital is becoming increasingly mobile as jobs easily move around the globe. Further examples:
IBM’s India staff increased from 9,000 to 43,000 between 2004 and 2006
In 2006, Dell announced plans to double the size of its Indian workforce to...

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