Toc yes we are [Music] sorry let me get it I'm not seeing the slides I don't know how to get back to it is [Music] I okay so how do [Music] I you never heard okay well never mind you know worse things have happened to people in terms of conversations that went public so you you'll be fine um right so um competitiveness can mean different things when mentioned by different people so we mention we spoke again about the fact that competitiveness relates to Nations um nation states competing against each other um particularly who cannot that um appear to be more attractive to investors so we think it's almost like a beauty contest a global beauty contest where countries try to make themselves as um attractive as pleasant in the in the the now and in the future to come um likewise I guess if you think of persons in a partnership or marriage or Union you try to make yourself look attractive the idea is I'm not just attractive now or should be that you're not just attractive now but in the long term you sck with me you will get banned for your buck you um have any change of mind and even if I I change and evolve a little I will still remain of value right same thing so you have countries that will try to make themselves sticky in the sense that they will introduce policies they will introduce um different um uh initiatives inre increase their attractiveness to foreign investors right and they want the foreign investors to come but they want to become sticky so when they come they also want them to stay so it's not just about just as in the personal relationship it's not just about paring attractive first you have to create an environment that will make investors want to stay in the country when they do get there right firms compete by trying to win market share from each other so another version of competitiveness at the firm level right and then competitiveness of the firm is more um complex oh that's what's missing it's more complex um than ever and again because we have far more firms operating in the global market space we have far more considerations at play than we used to right back in the day if you look at mercantilism and you talk about competitiveness you're looking at um what we term zero some right so it's all about how the mother country the Colonial Country in that case um can actually prevent others from rivaling it from being its competitor in that case it creates conditions which means that countries will want to trade um its Islands it's colonies would want to trade with it and not with another partner touch everything that I can touch see if it comes back it has okay oh it's not this it's the screen okay so um as I was saying we spoke about zero some game with mercantilism right um so the competitiveness of the firm is more than competition last week we spoke about the fact that the traditional view um when you look in a competition is simply to look at who your direct competitors are right but the idea is competition is far more than about sorry competitiveness is not just about competition what did we discuss last week that competitiveness was also about or competition was also um if you're looking at a firm and you want to assess its competitiveness Visa its other players in the market in the industry what are the other things they look at not just competition or competitive rivalry what else you look at differentiation this is where Port 5 forces [Music] com entrance all that right so it's not just about the direct competitors but it also includes the ability of the Enterprise to export to an array of countries without preferential treatment do you see how this can indicate a firm's competitiveness or a nation's competitiveness yeah right because if it means that you don't need special treatment to enter another market and to do well it suggests there's something special about you how you're organized what you're offering all that right it's about the ability to engage in foreign direct investment using local talents and skills the ability to operate at International standards and to earn above average return while competing with indigenous Enterprises okay um the discussion on competitiveness takes in naturally productivity again because it's not just about who your competitors are but it's about how productive how efficient you can be as a nation as a firm in terms of how you utilize the resources that you have at your disposal how um cost effective you can be um and so when we talk about even productivity a lot of times we go to look at the Count's GDP right because we want to see how countries stack up with g GDP be gross domestic product being a measure of output and a good indicator of the productiveness of a country um and so we look at me see if I CH if I se around the batteries makes a difference right so we look at um productivity as an indicator of efficiency and competitivness um right so competitiveness is important because it's an indicator of The Wealth of Nations when you think about productivity a nation's wealth what are some of the countries that would naturally come to mind us China us hold on look at this that she's speaking in the future she's projected so so look at this now some of the most productive countries in the world Lu I don't know if Singapore berm and there there's a secret there because it's in um Europe noreast Europe come anyways it's a tiny tiny country in the northeast of Europe right so so look at some of these Norway and you see the colors there what the colors indicate right so um in terms of the different well yes the different colors um so here is the United Arab Emirates us is at the 80,000 Mark 80,000 us if you look at so this is Ireland one of the most productive one of the most competitive countries here is Norway you said Jamaica you realiz would the little color over here right no Jamaica is a 10,000 a little over not bad very bad well you take a positive perspective and you look at you look at the rest of the world you see that the rest of the world also mimics us right the majority of the rest of look anybody down south a little above the equator or minus Australia yeah right um but yeah so when you talk about produ activity and you a lot of people naturally say the US and these countries right um but you see kman Islands Bermuda and so the points that um farmer is making it's very clear here there tax havs a lot of these countries right a lot of those countries Havens right where hide your money yeah off yeah so when you talk about productivity is not just how competitive your large firms are globally but you look at the country you look at its GDP per capital which measures the efficiency per person in the country right um but the idea is you see the direct link between the the um the wealth of the nation because these are some of the wealthiest countries in the world and that is why productivity is important okay okay um right so the productivity um considerations around productivity and competitiveness are important because this speaks to the wealth of a country and the long term growth potential sustainable growth of a country is also relevant when you talk about competitiveness because if the country is not competitive if again we believe that competitiveness is about the wealth of a Nation it's about how well the country does next to it next to other countries then it's natural you have to be able to sustain growth right right when we talk about competitiveness we see countries rise and fall throughout the years countries rise and fall which means they um either they started out being competitive they had a competitive advantage or Edge and they lose out over time it means that what competitiveness can be built right since it comes and but there's also an element of chance in it because there are times when um let's say you're an oil producing country you naturally like you look at Guyana now discovered oil so Guyana yes so Guyana GDP is rising so there's a chance of planning there's a an element of planning there's chance as well right um um we we've spoken about the possibility of of discovering for some now right yeah so competitiveness is also important because the internationalization of markets depend on it again competitive Nations many times they produce competitive firms because they have the conditions that push firms to do better to innovate um and to add value which makes them better able to compete in a global market space and of course course if you think about it when firms are doing well locally after a while they expand or expend the value of the local market space they begin to look overseas they begin to look in the global market space for opportunities okay so competitiveness in markets will drive globalization um we're looking talking about GDP growth rates as an indicative and as an indicator of competitiveness and productivity and this is just a visual for you of Jamaica's GDP growth rate over the years is he from the high of the 70s huh never found it back we never found it back but again as you go through you understand that some of it is about local conditions local policies International as well so you can fin yeah right so you can see the the flows the Eds on the flow but at the same time the story is still very much that we haven't been growing significantly right BR yeah so we spoke about competitiveness right and the link between competitiveness and productivity um being about efficiency how good a country or firm is at utilizing their resources to produce value bringing that now to the international market space we understand that firms Nations too will want to internationalize which means they go Global they get beyond their markets space they get beyond their borders their Geographic borders and they look for Value they look for markets outside of their countries of origin origin um understanding that economies of scale Drive efficiency what are economies of scale and how is it relevant for businesses which is such an obvious question right who is going to answer the obvious outut the level of output exceeds that that's the um Economist not spot on come now who else wants to give me something else rep question what's the value of economies of scale for businesses compe in the marketplace yes efficiency [Music] productivity exactly exactly and that's speaks to oh no I said productivity as well because your inputs way less than your wjc so we're saying how efficiently you can use your resources to um improve on your productive capacity okay spot on right um and so that's relevant for businesses it's also relevant for countries as well right and so in order to remain competitive firms will constantly choose to increase their Market size they constantly choose to identify New Opportunities so even the firms that you're looking at care your projects these are businesses that potentially are looking and in uality are looking for opportunities to continue their growth which means to continue their competitiveness as well um in some cases they they want to also increase um their efficiency their productivity certainly from a manufacturing standpoint as in the case of Grace Kennedy right um of course you don't need that because you all gave me the definition right but on understand sorry okay economies of scale the cost advantages companies gain from increasing their output which means again um how productive they are how much more they can produce from um while at the same time containing or minimizing their expenses right but there are different types of efficiencies of scale that are relevant for you even as you look at your businesses and what recommendations you're going to make for them so there's technical um e economies of scale right technical hair is where large Capital Equipment with high fixed costs um leads to a firm having an advantage over another so examples you can think of here like um a Manufacturing Company investing in a new new machine right um that gives them an advantage so it allows them to produce more um than its competitors you can also think of uh a software investment in a piece of software that leads to a firm having an advantage over its competitors right of located and they have machine that cuts the col they are able to sell the pre color in like supermarkets and so and that gives them an advantage whereas you go to the market and you may see the vendors with the knives cutting the color there and then right um You also think of like software improvements that companies can make that gives them more efficiency in terms of their ability to have a 360 the view of their operations right specialization and this is um one of the obvious ones so the division of labor and specialization within production leads to more efficiency with higher output so if you're able if you think of um the Quint quintessential manufacturing companies back in the day moving to what they are now how streamlined their production their operations have become so you can have a unit that's focused on one thing a unit that's focused on another or even where firms are large they can have a marketing department no no they can have marketing they can have Finance team they can have talent management all these things that they can look at right what does that mean for a small business maybe just one or two persons having to manage all these things so right away they're losing efficiency there right this a be a larger company bulk buying lower average cost for buying large quantity and we discussed this last week as as well right the power of supplier right and we can think of like a a Walmart we can think of a well Walmart is an example but you have firms cust price smart but you also have firms that um Contract Services from suppliers like you may buy paper so you're able to negotiate a better price for paper for your entire firm because you're a larger company right you get a better price for it um you buying both so you get better pricing marketing National ad campaign more efficient for high sales so again with a large firm they can pay for um a large marketing campaign at a national level they get far more or reach but at the same time their spend is not comparable the impact of that spend is not the same as it would be for a small business in some cases The Firm may be a multinational and so they're able to draw on the marketing resources from different units across the world to pull those together to meet the cost of marketing here a small firm does not have that as an advantage so for your companies how does that P out risk bearing the bigger firms are more able to survive downturns and we see that during covid-19 for example um I'm going to use Grace Kennedy again here sorry um during covid-19 if you look across Jamaica well not just Jamaica if you look across the world some of the firms that weathered covid-19 most effectively are firms that were we well organized and well managed to begin and these often times were large Enterprises because they had to abide by certain Global regulations and standards um our companies a lot of our companies listed on the stock exchange had to have good governance practices to begin with certific certification some already had the technology to begin having online meetings to whatever extent so when they have to jump online for 19 it was not as as as exactly right yeah so they were well managed they already had business continuity plans in place Disaster Recovery plans in place so they were better able to weather the storm right and then the container principle increasing surface area leads to double the increas in volume in other words if you are shipping goods and you're able to fill that container logically and and and and directly it means then that you're able to maximize um the the income you can get from that one shipment versus a small business think of our businesses right that's one of our challenges in terms of going global and internationalizing we often times aren't able to fill a shipment we can't fill a container and so it becomes um uh difficult and costly for our businesses but what's one of the things that we can do there for our businesses conolidation right right and so you do find that there are some large businesses who have from time to time partnered with some of the smaller businesses to get their goods in overseas markets and that's one of the creative things that we have to do we have to employ in helping our businesses to internationalize right Financial economy of scale larger firms get better rates of Return of of interest from Banks and we know that right um it doesn't always work out there are sometimes where there are banks there are suppliers who understand that you are large you're successful you have the resources so let me pass on the savings to some smaller consumers and still charge you the larger supplier as much as I can right but it's for you the manager in this large business to recognize what your worth is what cards you have when you're negotiating with in business right external so the idea is economies of scale can be internal and it can also be external right and that's about developments in the environment developments in the marketplace that benefit you but also then if it's external and without meaning that you don't have control over it suggest that others can benefit from it as well right the KFC is kicking in let's stand up for a while umine you're fine I oh you didn't have it's that that catch all it's a catch all right um and so as firms seek out economies of scale as firms seek to um become more competitive um to increase their productivity they will look to internationalize to go into the global market space so already you can make a case for why your firms that you're looking at for your final projects would want to look to the global marketplace right right right right um so it's really the integration of markets for goods labor and capital and again talking about what globalization is the key point to gain a competitive Advantage managers must understand the characteristics of the interdependence among National markets right I am going to break and allow you to go get your coffee and to stretch your legs yes man I taking the break early so no because you won't need the other one after this I want you to engage in some discussions when you come back for the right you read the the Morgan and Williams is it [Music] Morgan the main text but there are other readings there that um Denzel Williams has a competitiveness of small Le that same book from Williams it relates to it right competing against multinationals but remember again you know um so so we're going to go on to talk about um globalization so what I want when we come back as we discuss it's to apply to see what are the challenges then that small states would be facing which is a so you don't want to take the break yet yes no cuz I see a lot of people falling as yes man I I'm up here I can see all the faces right so you're fine no she wasn't falling as right you weren looking around to the others beside you okay so so let's um you take it back okay 355 10 minutes let's just come and we will go through we won't break again get your coffee yes get your coffee do your stretching right get your coffee do your stretching and come JC we're just taking a break we're back at um 5 4 sorry to R this for yeah e o sh e e e e well to the same some of it so some of the discussion next week as well we continue on with talk that's so don't get it when you get there it's speaking that's e e e the library does one okay ready again question Al it's two two two forms right so altern it as in a direct substitute or your let yeah not just raw material no for for your whatever it is you produce whatever it is you're selling to the market what are the substitutes that exist for it so there are two types direct and indirect if you're selling coconut milk are there other coconut milk manufactur cor right right but then indirect so you use coconut milk to flavor your rice and peas some people may say Okay butter could be a substitute right you could use um huh replacement what is a replacement what is a replacement for it so what alternate could you use instead of that pH could it be and a substitute for ingredient in your produ not in this sense no no because because you're looking at what okay so the substitute here is what can your CER and not ra material at all no matter what the IND no remember you're looking at it from the CER yeah so so it's Ary making puding um focus would then be the company that's selling selling the sugar or the agab so they know when they think of threat of substitutes are thinking that no one has to buy sugar they can go to agab instead but not for you right understand anybody else have that problem anybody else have that problem so remember you know it's about um so so we looked at the the internal Dynamics for the firm and then the industry right so internally you can look at your supply chain to see um this could be a matter of suppliers right your power supplier because your supplier may decide they're not going to sell you they'll sell you at a different price Etc but it's not about your substitute in this case because it's not your substitute of your final product what it is you sell if it's an in no it's not about so the businesses themselves yeah and this is where maybe then you talk about the power of supplier you see what I mean so if the supplier of that ingredient chooses to increase the price then that's focusing on suppliers so can I use another ingredi as a yeah that's that's one of your response mechanisms makeer not so you would do your assessment now to decide if this is a um an okay substitute for what you want based on the flavor and companies do it all the time when you need to reduce cost you go back to your ingredients to see what you can tweak even if you um if you think of better for you they may want to reduce sugar they may want to reduce salce so they want to maintain the flavor profile as much as possible anyways right um so so it's what you do internally as a company to respond to whatever environment changes there may be so for you maybe you're having a challenge getting the the sugar at the same price um you want to increase your profitability so you want to see how you can cut your production cost right so you look at your your raw material but but then it's not about your um substitute that is about Supply right everybody clear all right [Music] okay and you have to of course so it's good to understand these models because you're going to have them either in an exam context or to your case study right um okay so so let's let's continue [Music] okay so you you're properly um refresh what's up really no we we are going to finish so this set of lecture this set of slides it's fairly smooth so we can go through and finish um finish at a good time today but also it's meant to finish early so you can begin a discussion about your final project and what you have to do all right so um I want to the recording okay so so let's let's continue um so guys we've discussed competitiveness and the question was asked about the relationship with the readings um and I want Michelle to bring up points that from the readings as well but the readings talk a lot about what competitive is competitiveness is and the challenges around defining competitiveness right and moving from the old view mercantilist view of competitiveness into um more recent definitions of comp competitiveness which sees it being more than about your competitors um and also looking at competitiveness as in being competitive doesn't mean that others cannot be competitive right so it's do it doesn't mean that I as a competitive individual um or firm cannot exist in a context where others benefit in other words you do have conditions where there are technological Chang that sees all firms benefiting becoming more competitive you also see firms collaborating so it's not a Cut Throat always do or die you have firms who are networked who work together and in working together they enhance their competitiveness right so that's moving from the old to the more recent appreciation for what competitiveness is we also understand um that competitive is also linked not just to um uh competitors again but it also moves um to look at your per capita income and even going beyond the per capita income to actually look at how firms within a particular Market operate all right um one of the views I mean the definition was given of compet of it was economies of scale or competitiveness which was very economics based um which essentially focuses on the unit only but again we're moving away from that to appreciate that competitiveness means different things um at the firm level at the nation state level all right we looked at the firm level where competitiveness was traditionally seen as a zero sum game we're saying know we've gone past that at the nation state level it can be a positive sum game because you have clusters of countries clusters of um regions rather where firms do well you look at like uh EU you look at countries within the EU do they do well their firms in the EU relatively do well as um next to other firms in other countries so it's not that um one country is competitive others are not not always the case but we do see that there are certain practical applications still because you have most developed least developed medium high income countries so there's still some relevance it's just that the traditional view does not preclude other um uh countries from also being competitive while one another is okay so we also linked the idea of competitiveness to productivity and when we looked at the table for the most productive countries some of the those that we would see or think of as um naturally falling there they weren't there right um we also looked at competitiveness it's linked to productivity and internationalization a suggestion that as firms seek to become more competitive as Nations seek to become more competitive they look to Ways and Means of globalizing internationalizing getting into the international market space and economies of scale become relevant because economies of scale suggests efficiency suggest productivity um in enhanced revenues right and so firms will want to look at the international market space as that Avenue through which they can enhance their competitiveness okay we also looked at the economies of scale argument dissecting the different types of economies of scale and even when you look at the different types of economies of scale you can see how firms would benefit from each but on the other side you see how small count how small firms how some countries end up being at a disadvantage when it when it comes to economies of scale in our case by virtue of size we didn't choose it but we Face certain limitations simply because of our size our businesses then within our countries face those same limitations as it relates to economies of scale okay um we also linked again the fact that internationalization very much um is linked to globalization because internationalization suggests going beyond your borders going beyond the confines of your narrow Geographic space so you're looking for opportunities globally and this is where globalization interdependence uh the globalization of markets um Goods labor Capital comes in and we're going to now look a little closer at what all this means what it looks like first so we're going to look at markets for goods for instance what does it actually look like now and what are the implications again for any manager any aspirant wanting to you must understand what all these things mean for you in terms of your strategies that you will employ as a manager how you will respond to the threats that you will naturally face even if you're a small business you will still face these threats and so you must be aware of what the response mechanisms can be okay so we move forward um and we spoke about Arbitrage before we're going to go into a little more what that means implications and I want Michelle as well to okay I oh no but I'm fine thanks to Kell thank you um right so um one of the features of globalization we've discussed is the increasing goods and services increasing trading goods and services across the globe right um there these are just some stats to give you a clearer view of how I mean we live it so it's it's easy to think you know we're experiencing it so it's not significant but if you look at how um the the the trade in goods and services has mushroomed has ballooned since the '90s and even Beyond you can see how significant again globalization is has been and how the different um agreements the different institutions that we've looked at how they've helped to shape the global environment in which we operate right so World Trade volume today is roughly 45 times the level recorded in the early days of the Gap and I'm going to go through this is just the words but we'll go through and look at some figures um some graphs that give an idea of how these changes have occurred okay volume um as of 2022 World Trade volume and value have expanded 4 and 6% respectively on average since 1995 those are just words let's see what it actually looks looks like uh can you see or I need to put some pluses can see okay so this is from the 1950s roughly let's say 100 um and this is um billion right um from 1950 to 2022 you see the increase there um over 4,500 growth in the volume of trade since then and if you look here again I mean it's it's been on stud course upwards but the 1990s right the WTO globalization you see how much it has increased with um I mean the dip there of course with covid-19 exactly but but can you imagine then um we're we're now in 2024 and you think about all the things that we have asked access to locally all the goods Services whatever we have access to imagine if we were back here so we watched the documentary in the first class right and we saw a lot of the things that the the um Farmers complained about their they lost access to this they lost access to that they lost their livelihoods Etc but the same time do you think this is a success story for the architects of 19 45 very much so right their idea is to increase trade get everybody networked different countries reliant on each other all right um and they grow growth there again of course with the um trade in Not Just Goods but also services um and again you see the evolution in world trade in terms of values um but do you remember what the the was it the IMF person said that uh small countries you know you should open your Market you're not able to produce certain things efficiently you don't have the economy of scale to do that and so you should open up so the idea again about the winners and the losers and from what perspective do you take it right so for the Architects they can't say yes it's a win for them it's a win right but then you look at the individual circumstances within the St right oh I thought you had a question yes right and then if you look at the value of global trade this is um in the billions but at this level it's 24 roughly 24 almost 25 bill um trillion US dollars in terms of the growth and where um world trade is now moving from 1950s to the present so anybody who talks about reversing globalization would essentially be talking about halting the global economy right and halting the the growth the progress of many countries but at the same time it would disrupt certain countries um in terms of this of their competitiveness because if trade is the Bas and your ability to trade is the basis for your competitiveness is the basis for your wealth then if that is disrupted then obviously you disrupted exactly right and so you can understand why there's a constant battle um why the the issue of China us is so dominant why even not Russia is so significant because if you can disrupt a nation's ability to trade you are you disrupt their wealth accumulation you disrupt their power base and if wealth um is used as a as a proxy for power then you can cause them to exactly right Tre their economies the value of their economy Cuba yes um so yes Cuba and then we we're living through one of those experiences even now but at the same time you can look at like the um Asian countries that are growing know um the the T Taiwan um uh Thailand um and so on that are growing because they're increasingly interconnected um they're they're they're looking being seen as Alternatives even in terms of a China right um so when we look at Arbitrage we're looking at the that that's a definition there right but Arbitrage essentially um is the simultaneous person purchase and sale of the same asset in different markets in order to profit from Tiny differences in assets listed price that's the definition in other words I am in Jamaica I um currency can look at the currency Market you can look at the stock market there's Arbitrage in regulations Arbitrage in wage so you want to see how best you can benefit from changes or differences in prices across one country to the other right so there's there's Arbitrage as I said in in um stock markets even in in um oil the value of oil across different countries the difference um in currencies across different countries so one of the classic examples of Arbitrage is is where you find a company that's listed on more than one stock exchange and you decide you'll purchase stocks in the company in the country where the stocks are cheaper and then you go to the other country where it's more expensive and you can decide to sell it you earn additional income right um another form um their country their persons who trade in currencies right um so you see where the value of a currency um or or you're going to invest in stocks um you can decide where to invest sometimes in the same based on where you will stand to get the most value now of course the idea is things are far more obvious now than before so we we can pick up where there's Arbitrage taking place and the idea is since you can pick it up now it's more difficult to benefit from Arbitrage but guess what countries companies still engage so if for instance you're doing currency trading and um there's that loophole which means that if you purchase US dollars for instance in Trinidad yeah in Trinidad um you pay less 680 um and if you go to another country after so you have fewer of your original currency that you use to purchase the same amount of US dollars in a Trinidad versus doing it in a Barbados then you go on you do that right um so it's important so we're talking about price but there are implications for you as managers in those differences when do you act how do you you act right and where do you act okay so when we look at um price Arbitrage price differential forces firms to take advantage of Arbitrage profits so for instance you may and the point here ICT has helped to reduce the cost of Transportation which makes it easier to trade goods across borders so more than ever in a global context where you have different markets operating across it means then no the person [Music] has that's fine that's fine that's fine all right um a classic example so sorry Michelle R Kennedy again is listed on the um Jamaica and Trinidad Stock Exchange right and there are persons from Trinidad investors who will purchased the stocks Grace Kennedy stocks in Jamaica because it's cheaper right um and that's something that uh managers have to watch at the same time you as investors that's you you watch it as well so each group work watches um one to be able to control and the other to be able to understand and um catch the differences and the glitches at different points so they can take advantage of them right think of you um in this case Rand the company right um You in Trinidad but you acquiring stocks here you destabilize company in terms of the real value of the asset but also if you are able to um when you when you the price yeah but at the same time if you have X number of stocks available in the local context and um a Trinidad company or perm they can over time end up with significant amount of shares in your company that you didn't plan for them to have in the first place when you think of um you your hand up exter no but if you're from Trinidad buying the shares in Jamaica right it means that um The Firm isn't always able to give an account for where it stocks are where it Shares are right right um they're they're for instance um uh investors or let's say you want to take over the company you can it's almost like sub a fuge so you can have purchase purchase the shares for the company in different locations and very soon you become a significant shareholder who can determine what policies what direction The Firm goes in as well as instigate certain moves that may lead to a takeover yes I understand that but also the firm's decision how much cap they want in the market which firm which firm the one who shes are being purchased selling exactly but the thing is they know how much is available but they don't want concentrated in that's not something that they I'm trying to understand no they they can so when they're selling this stocks they will tell you specifically how much the maximum of person can have and stuff like so essentially what she saying is that you could find five investors in Trinidad come together to take over Grace and they don't want that so they will limit the number of shares that International investor will have and they don't want too much in any one country because he can have sit come together and take it over it's unlikely for the investor to be G and Jamaica to p together but if you're in Trin it's more likely and at any point you can decide you're going to sell those shares yes but you have a right to those shares but it's Lely to Happ that's why you also manage you know each company knows their key shareholders right and they know and they track these things they track how many shares different individuals have so you have shareholders meeting for example they have annual General meetings right so they know who the key shareholders are companies manage this thing very closely exactly that's so it's not just about take over you can sell let's say uh a an international investor wants to buy G and you have shareholders who have significant shares significant ownership that International investor can wo or approach those shareholders offer good value and end up putting themselves in a position where you can take over the company yes that's why I'm asking the question what how does AR Arbitrage come into that because because you are it's from the starting point that the shares may be cheaper here so you acquire more shares in Jamaica right versus buying them on the Trinidad stock market all right and then there was a question it's not illegal per se because there are gaps in the system and that's where the Arbitrage right um in this world where countries are competing against each other investors are looking for whatever Advantage whatever um benefits they can gain from entering One Market versus the other so it could be regulatory Arbitrage in the sense that there are some countries who have different well countries of regulations some may be a little more beneficial to businesses than others so you want to know as a as a manager if you want to internationalize which Market has the more preferential regulatory environment for me as a business and you choose to go to that one right um sometimes there are loopholes where it may be that it's a it's a developing country who hasn't evolved its regulator regime to an adequate extent yet you as the investor may make the decision that in the short term I still benefit if I benefit from that I still benefit if I enter that market and take advantage of that particular Arbitrage versus entering another market right um so it becomes something that um is more prevalent because of global trade and the extent of global trade um but at the same time the idea of whether it's wrong or right it's something that's there the idea is the markets should automatically correct these things but it still leads to situations where investors where firms are able to benefit in the global space all right um following wjc it's my following okay okay all right then thanks um uh yes so we we we looked at um Arbitrage in terms of price um Capital as in the movement increased movement of capital across the world which is a feature of globalization you also have the potential for Arbitrage to feature here as well okay um let's look at the so Capital moves in relation to interest rate differential across borders and this is again where investors may choose to invest in particular countries based on the the the the benefits that they think they derive versus investing in their own I'm going to show this video as a an example of where this can fit in okay um and again this is the the the point profit for the investors right and so there are firms there are individuals who sit they watch Global Currency movements um they watch um oil price movements from one place to the next and they it's it's a quick moment that they can take advant that they can act and get profit from their actions right so usually it's thought yay currency see if there's a a currency Arbitrage you won't benefit exponentially but if you are a large company or a large investor trading millions or billions even if it's 50 cents different you end up benefiting over time right until that glitch that Gap that problem is fixed you can benefit all right let me see if I can Che this and the challenge there of course is with the um potential for fluctuations in international exchange rates right e it's bring the most to that screen okay it's sharing it's sharing okay e we are not hearing the video I'm fixing it sorry about that okay covered in Arbitrage is a trading strategy that investors use to try to profit from the differences in two Count's interest rates for example the interest rate in the Euro Zone might be 15% per the interest rate in the United States is 5% per year unfortunately unfavorable exchange rates could eliminate investor profits to avoid this scenario covered interest arbitrageurs use a forward currency contract so that they know what exchange rate They will receive when they convert their in investment back into their original currency investors need to know two things the exchange rate when they initiate the trade for example € euro equals $1.39 the spot rate and they also need to know that they can later convert euros back to dollars at a rate of €1 equal $1.35 the forward rate for the trade to be profitable this hedge must cost less than what the investor will earn from investing in the currency with the higher interest rate Angela has $1 million to invest if she invests at home she will earn 5% bringing her total to $50,000 but what if she uses covered interest Arbitrage instead first she converts $1 million to EUR to get $721,000 this investment earns 15% bringing her new Total to 829720 she then converts her investment back into Dollars receiving ceing 1,1 120,121 opportunities to profit from covered interest Arbitrage are rare especially in highly active markets where all Market participants are equally informed also the market usually brings any imbalances back to equilibrium when investors who identify such an opportunity place a flurry of trades in an attempt to make a quick riskless profit their profits are typically small and taxes and transaction costs can eliminate gains from covered interest [Music] Arbitrage not smart smart no she's saying what $200 so that's the point they're making that you won't make a lot and if you're a small investor then you don't always you don't benefit from Price Arbitrage but if you're Lar invest exactly exactly exactly right and so even as this is saying you know there's the increase in information and Communications technology so you can better see what's happening um you can see what's happening across different markets the idea is people watch this investors watch this closely because if you get in at the appropriate time then you are able to make a winfall um we do it in different ways too I mean like um you look at a Guyana now um where it's believed the economy is growing so prices are going to be increasing years ago if you wanted to buy property for instance in Ghana it was cheap right the idea is if you get in early as an investor then you stand to benefit in the long run you buy a house in Guyana you um years ago and you go back to sell it in the US now you make a nice penny in terms of a profit so it's about even as a business oh my gosh I could not myself if you know oh gosh but but that's a prime example you need information but that is it and that is why um there's so many rules against insider trading right because it distorts the market okay and [Music] um but then as a manager you are aware of this well you should be thank you you should be right and so you know even if you're a small business you know when to take certain operations to acrw maximum benefits revenues for your business it's like also understanding closely what the trends are globally so if you're aware that there's um well even with Guyana and oil you are watching recognizing that the gye economy is going to be growing right construction what do you do now as a business even in Jamaica thinking about what the opportunities are down the the line down the future how do you get in where do you get in right do you start Hub knobbing with the decision players in Guyana all those things right the implications and the consequences are there um um so looking at the movement again in global Capital markets and looking at how um the growth has taken place how rapid it's been the understand again why there's potential for Arbitrage um and we're going to look at even more closely at some of the opportunities um and decisions that firms can take in dealing with Arbitrage okay um foreign direct Investments have grown exponentially yes and it said that FD have increased significantly to developing countries which developing countries you think are um have benefited the most from the The increased flow of FD I examp Trinidad and Guana again Trinidad and Guyana well in in the region Guyana has seen an increase in FBI because its oil right um yeah yeah but you know I was looking for the more traditional bricks um as in the the developing countries that have that are responsible for the large flow of FDI to the developing world right um but yes if you're looking at the region can say right um so even as you know people will say yes globalization is benefiting all because there's increased flow of FD to developing countries the reality is not is not all um developing countries that are benefiting from it right so yes FD flow is increasing into the developing world but not on a an even basis this is the latest um the latest in terms of FDI flow for 2023 2022 2023 so yes um we're over a trillion dollars now in terms of FBI flow grow globally but look at where um so the world in 2022 23 um 1365 if you look at developed economies developed economies responsible for 524 um billion Europe North America other developed economies you look at developing economies and it's the C at Africa Latin America and the Caribbean you know the Caribbean is bunched in here with Latin America but Latin America and Caribbean is at 209 but if you dissect that number you'll realize that the Caribbean has a much smaller value there right and Asia growing economies in Asia 584 but at the same time they've experienced a decline so over the years there are certain Trends yes increase FBI to developing countries but nevertheless the developed world still controls the bulk of FDI flows and the Asian countries are responsible for a lot of the development in terms of FDI flow in developing countries there are certain trends that you see more recently evolving in terms of the flow of FD so the environment is featuring here again um as an indicator of where FBI goes um and the increased attention to environmental concerns in terms of FBI flow so 2015 is when they had the Paris Accord right Paris agreement um broad focus on environment the need for um countries to address climate change and so on and with that we often hear about the promises of Inc increased financing to countries right um renewable energy financing has increased support for sustainable development projects has increased Green Field Investments linked to sustainable development and the sustainable development goals have also increased so we see this trend like the other trends that we discussed in the global trading system also featuring here in terms of FBI because again the idea is if we were to address the environment which is an increasing concern in global trade then we also have to put the back in there in terms of the funding as well okay so we spoke about price arage we also look at wage Arbitrage this means again going back to the documentary we live it we live in it we are to continue living it companies will move from one country to the next based on wage we saw it with the loss or death of our garment um manufacturing industry right um we see it with even companies moving from China to go to other Asian countries where they believe wages are are better right so again companies will move from one location to the other to take advantage of um cheaper labor have to physically move or just excellent point right so that's exactly where I'm going Arbitrage now is not just about moving from one country to the other so the Global Talent Force is not just about migration right you can be in Jamaica and you're working elsewhere right um we saw that very much in Co and there are certain professions now um with managers account um accountants um Auditors exactly yeah exactly right so you no longer have to move physically you can move virtually right and you don't even have to move permanently if you choose to you can just go work and then come back to your own country so that is one way in which we can address some of the challenges that we face in that regard right because we have skilled people when we go elsewhere people hire us very quickly right so likewise and Market yourself online right you can look for a niche or you can offer some services to the global labor force the global market space um and you offer them with wage um your salary being a competitive Advantage because the idea is even for Auditors you have to pay as much but you get good service from our people government using Works to of manage work for their citizens but this new phenomenon is know a way to usur it so to speak that we're going to government will have to put laws in place to manage it because you could find a situation where your own citizens are unemployed so to speak even though they are here and the jobs are being done by people in another country work re well um a number of countries are um finding ways to address this right so one of course you can't prevent firms from seeking value um and and then there are countries who through work permit system have reduced the and manage the movement of Labor um there's another group called um digital Nomads so persons who are able to work in whichever country um and they travel so they may be traveling the world but they're full-time at work in one location right um there are countries who are taking advantage of that now so rather than necessarily see it as solely a negative you look to see what are the entrepreneurial opportunities you can gain from so like a Barbados I mean we we've I don't know that we are doing it well but like a Barbados for instance will Market themselves to say um come to Barbados you are earning developed World um salary your spending power is far greater here and at the same time we're building the infrastructure for example um uh Broadband capacities being Advanced so that means you can travel all over Barbados and work with uninterrupted internet service uninterrupted connectivity and as you travel of course you're spending in Barbados you um they some countries are giving special permits for digital Nomads um others are offering um accommodation so okay and this is anybody looking for a business idea um you can open an accommodation service for digital Nomads where you offer the complete package so once they get to your location you offer them the internet you offer them printing if they need printing you offer secretarial service some digital Nomads are TR traveling with their families their children because this is an excellent opportunity in a Time TOA to travel the kids are cheaper um in terms of flights and so on offer schools so there are a lot of countries now that are looking at that particular category of worker to see how they can build a whole ecosystem around them of services right um and countries are actively pursuing so when we talk about the competitive of Nations it's about how how P not perceptive but how agile a country is just as how we talk about agility of firms how agile a company is um a nation is in recognizing Trends opportunities and inserting themselves at that point and quick enough to take advantage of those opportunities before others step in right so it's now one of those Playing Fields that's becoming competitiveness more competitive because more and more countries are trying to build um the infrastructure to attract this group of workers so we see how um you don't have to be right um I met uh because I was doing some research on on that particular group and I met one he had his um wife his child was like six years old they travel from country to Country so every month or so they move to another country they ship their luggage um as they go along so that's a business opportunity um when they get to the country they look for their home school but often times they want to go out without the child they're looking for babysitting Services I mean a whole ecosystem of businesses um surround um that type of worker so yeah it's not just about the threats but how countries can position themselves to benefit from some of these ships okay okay [Music] um factors which motivate the globalization of Labor growth of employment in industry and Manufacturing in developing countries with learn about migration we learn about migration um the growth in diaspora groups and why some people may choose to move from one location to the other they're in search of greener pastures better job opportunities better schooling um less crime all these things contribute to the movement of Labor uh from one um country to another growth in trading manufacturing between developing and industrialized countries also right um and so all these create opportunities for labor movement but again as was just discussed with um as was just discussed with the digital noad movement there are lot of opportunities there for countes okay so while Talia helps me to get that up let's now go back to it you are um developing country manager right you're developing country manager how would you respond to um wage Arbitrage what are the what are the the tools or techniques would you could use to respond to labor Arbitrage or let me ask you how do you think you stand to benefit from labor Arbitrage so we look at it as negative but it can be positive specializ specialized skill sets in certain areas that maybe are not available can ADV own exactly right yes excellent right Outsource call centers call centers yeah ultimately those are ways that you can benefit right and a lot of times we complain about not having um the right skill set to do a task yeah um we can as was mentioned Outsourcing um India for instance has benefited significantly my but nevertheless they've benefited significantly um sorry labor is cheap yeah labor is cheap right so so they've benefited and so the idea is New China basically certain SK yeah yeah so so the idea then is there there's a good and a bad to it and it's about looking at how your options are affected by knowledge of the existence of Arbitrage right so there are cost savings access to talent but their are quality consider considerations mentioned you spoke about the accents for India right um one of the things that's not always considered is the undertones of cultural biases and differences that exist globally so everybody assumes okay we'll take our business to India because India is efficient but do they have a view of giving good quality service to all countries or do they see certain countries and certain calls pop up from certain countries and they figure this is a country that they don't have to give the highest quality service too who knows I mean there should be a standard though in that Arrangement that this is no matter who the same but I find that even in the tech on the tech side as well a lot of the supports um for organizations multinational they are indan companies yeah so um I I I had an example um of that I there's a particular service that I use um to access certain papers and it's an international service and they switched from wherever the the the the the call center was located to India um whenever I made a call before the switch I within five minutes I would get a call back a response um they'd walk me through the process um and this is usually about my my password expired or I need to change it instantly five minutes work through respond then after um I I I get the the problem addressed I would get an email acknowledging that they had helped me and saying thank thank you for your service Etc more recently I had to wait three days before I got the service that I was used to getting in five minutes right um and the one of the issues was they couldn't call me they couldn't get me in Jamaica time no but they are supposed to the kind of service that they offer is me to be instant because the idea is the the the because of the business the particular nature of the business you need instant service you need instant response so the time 24 right so the time zone should shouldn't matter but it was okay we couldn't call you because there seemed to have been a problem um di in Jamaica right um and I was surprised by that because it's not supposed to be but they changed they changed the call center and it's now in India and that's one of the things that happen but the quality considerations there come into play right the time zone advantages it can be an advantage it can be a disadvantage um huh but that is it for uh um for the other players before all accounts are priority yes right and then when you engage with businesses in certain countries they have a particular view the cultural considerations Jamaica is a small country I mean what what business in Jamaica could possibly do be relevant enough that you have to address right away they're not thinking that they are multinationals in Jamaica too right so they're not think that you need your service right away you can wait right I find some of my so you always have to be set different sessions and you can't have one somebody started long ago and somebody just started so you have to be aware as a manager of where the different um which country and the the changes yes those times where the hour goes forward or backward can make a break a meeting or a business yes but as a multinational you can use that differentiated nature to your benefit because you can decide which country you start a particular business in in or exactly right um and if one country is going to be on holiday then you know okay you can move whatever um function or whatever needs to be be done to another country right um but the cultural considerations for sure are relevant all right so the advantages of Labor Arbitrage cost reduction access to Global Talent so your company now is facing um issue getting Auditors getting accountants find out where you can get this online the same service right or where you can access the talent um even in terms of accessing Global Talent um there are firms here now who are looking to hire um accountants from the Philippines right so you look to identify which country where in the world can you access the talent that you need um even in the US now in Canada you find a lot of Filipinos moving into certain sectors time zone Advantage scalability again is relevant there enhanced operations and importantly risk D diversification okay so you have more markets more opportunities open to you you can minimize your risk somebody other a point no okay the challenges associated with labor Arbitrage and we discussed some of them a while ago right cultural and language barriers um you know it's interesting but the the even when the CA and wireless call centers moved to Trinidad there are cultural even language barriers there um data security and intellectual property protection and this is one of them that's increasing in relevance in consideration right um because again how do you protect your customers data we have the the EU gdpr regulations that will charge firms where there are breaches of um private data for customers sorry yes yes yes right um and so um okay all right so so so we yes we have our own local data protection act and we see where companies even um us as a as an educational institution have to put in place um or our data Protection Officer and so on right so even the market for data protection officers has has gone since now finally the management challenge so changes in the external environment will have to be incorporated into the firm Strat y if there're to gain a Competitive Edge in global markets right so you are looking at your countries that you're looking for your final projects you want to understand what are the changes what is the the business history of that particular country that you're going to recommend that the firm enters in because you want to understand the changes the processes in that country and the implications that they could possibly suggest for the future of that business if it enters that market right so internal efficiency in finance production marketing Etc are necessary but not sufficient why not why is internal efficiency in finance production and marketing important but not sufficient what have we seen so far no company is internally if the political uh the external business environment external environment like political is not good politics a performance day youry have the greatest company the political system is not stable it will right um and we're looking at globalization again and we understanding that there are certain forces that are taking place in the environment that can um be outside of the firm's control right of the difference in exchange rates right um totally wjc you heard that no could you repeat please so I would say that one of the point that I took away was when investing or expanding your business to another Market globally the exchange rate maybe one that will negatively affect how you do business in that new market yeah okay okay great so even if um you think of um your suppliers being Global right um when you decide to with last week we spoke about lead purchase agreements so when you decide to purchase a key ingredient is going to be important where you decide to purchase it from is going to be important right and so um for large businesses they benefit in the sense that they're able to have supply chain managers and all these things are keeper breast of the movement in prices for key Commodities key inputs um small businesses don't always have that right so even well I'm about sure that not all of you are in large businesses you may be mediumsized businesses or you may be starting your own so you understand the many things the many lenses that you must have even as a manager even if you have um different units within the company that manages these things you still have have to have your eyes on these you still have to be able to appreciate the implications for you as a manager because ultimately you are going to be accountable for the revenues right yes the different units are there but you ultimately have to give an account for the firm's profitability so you twoo must be able to engage the different units on these things so total efficiency is what is needed that's the internal efficiency that we spoke about here um the internal efficiency that we discussed when we looked at the internal elements of the swap right um plus external efficiency and dynamic efficiency quick and effective response to new situations in other words how easy right how agile is the firm how easy is is it to Pivot and pivot we hear about during covid-19 a lot right so if you are faced with um uh if you're efficient internally and you are efficient externally it should help you to be more dynamic in terms of your ability to respond to changes but we know that's not always the case we do see where there are firms who are internally efficient but perhaps not externally right some firms are inward looking so as a manager yes you have to build from within but you have to keep your eyes fixed also on what's happening in the global market space right because when we we spoke about strategy right to strategize you need to be aware of what's Happening internally to know what your resources are what your capabilities are to be able to um outfit you to respond in an efficient way to what happens in your environment right so a lot of our firms that are local you look at um the separate um try not to say grace Kennedy Michelle um you look at um Pony Lasco um a lot of the Innovations for instance that Lasco came up with they they looked at the local environment they also saw what was happening internationally and so they had a sense of what they could do locally right but as can be seen efficiency um your internal efficiency can shift could be the death of the key player in The Firm right yeah and that affects your Dynamic efficiency because that's used to be seen as that so now all eyes are on Lasco to see what what what will be the future of alasco without ael's chin right yeah um how can firms respond to the internationalization of global markets seek New Opportunities seeking New Opportunities again goes back to keeping your eyes fixed on the global landscape on the local landscape and that's why when we talk about entrepreneurial firms because it is not going to be the players who are embedded in the system who are used to the status quo and who don't understand the imperative who do not understand the imperative of of on of of looking at Trends picking up Trends identifying Trends identifying shifts in population identifying shifts in in in culture um in values to be able to identify New Opportunities and take advantage of them to maintain their competitiveness right and that's also one of the challenges that many large firms face because some are slow lumbering and it takes a long time for them to change so the idea is for us with our small country our small firms we take more we can take rits yeah but this is one of the benefits that we have in the system that small firms because they're more agile they can identify opportunities quick up but we see still that even while they can identify by opportunities quick up sometimes they don't have the resources in our context to take advantage of those opportunities right um firms can also make necessary adjustments to shops um and we see that as well um in terms of I mean even going back to co how some firms adjusted or they pivoted um identifying um uh what new opportunities arise from some challenges so even looking at going back to the documentary many of the the businesses that even the farmers they were unable to Pivot they were unable to shift they were unable to identify new sustainable opportunities right um and that remains one of our challenges um to our businesses how agile are we right and what are the means of agility for us so yes some people look to um diaspora markets as a source of agility because it means that they help you to overcome some of the challenges that our own businesses facing Going Global by providing a ready Market I've noticed the trend in Supermarket where the supermarkets are providing prepared meals right and itet and it makes you wonder that people are noty as a high demand for it because the expansion is very across many different supermarket brands so it's that I mean that's an indication in the market that as the supermarkets and manufactur is prived inket and don't move yeah and they get to use near expired in some cases items right vegetabl but but it's also about um the agility and recognizing changing populations because the ideas will come from different places one of them being changes in even preferences so more people are wanting to have a ready made meal that their comfortable tastes good exactly and it's healthy without having to go home I tell the prices I've gone past prices now the arrival in restaurant prices yes so there's a kale salad that I usually get from um that Supermarket the new Supermarket on yeah and it's was it's now 1300 something for that k sorry Supermarket you think people buy groceries long she us line and that's that's the same kind of idea that we want our firms now to take on a global scale how do you then um identify New Opportunities how do you take advantage of these opportunities um recognizing again that you're in a space where other firms are looking for opportunities go a little louder okay when so it depends on the their foundation for doing the inward look in the first place so if you look at like a honey BN yeah so like a honey BN is a family business right um and they've been doing well chugging along but if you notice the last couple years you've been hearing so much about Honan um Innovative products that they're coming out with it's still a family business but guess what they handed over to the younger generation right and they empowered that younger generation to make decisions key decisions for the business so then you this is how you look back internally who are you what's your vision it's a family company it wants to remain a family company but at the same time it also wants to grow and it wants to use that family as part of its core Advantage it's competitive Advantage but at the same time it doesn't want family to be a restriction right and so they've taken an approach of understanding who they are as a company understanding what their resources are and then visioning where they want to go right and then from that Vision where they want to go they've now increase the role of international in their operations so they're going for forward to see what are the opportunities and where are these opportunities for them right and that's how you marry the internal with understanding the external environment and then becoming Dynamic enough to be able to respond identify opportunities and take advantage of those opportunities right so so um again internationalizing is not easy course small business again we go back to all the points we discuss about the economies of scale it's difficult but you can nevertheless do it we have small businesses that do it um for for some of our undergrad projects we look at businesses small business internationalized places like Switzerland how Walkers wood is an example right you look to where you can find a ready market for your products you know that there are people generally who are interested in ethnic Goods you know that you can take advantage of your diaspora population who exists in these places um I tell you a story for instance there's um Golden Cross patties which is a Jamaican food restaurant chain in the US they've grown they're in Canada um if you look at the places in the US for instance where they're located heavy cariban heavy Caribbean prisons in the prisons um around hospitals because you have many Jamaican nurses um sad to say but you do have yeah so so where are the key places so for so for us um our small businesses how do we what are the opportunities that we identify um to get into the global space to become competitive and if you look at it that um one of the trends for instance is a the trend towards ethnic Goods um somebody has to Pro provide it so why not us right um and that's the basis for workers good and these um businesses that are locally based um or Jamaican own that have international based okay all right so I did promise an early evening because I want you H question discuss the projects yes because I want to make it clear that I finish early and I the ear eing but still let us talk about your final projects um I know you see you're finishing new Ventures and something else right you have a test next week next okay no but don't don't wait until the end of your test to do your project I can always tell when a project is rushed right um so if you haven't selected the company yet please do so I would recommend that at the end of each class that you pause not necessarily the same day but as a group you can have your Google um document open just reflect on how that classes discussion would influence your thought process for your project so we discuss things like um La wage Arbitrage today we discuss price Arbitrage and so on so even when you're looking at the country that you're going to recommend that your firm gets into or the why think about timing right the other one is the makeup yeah but still think about it what is it the right timing for the business right um in terms of in the tell so it's a part of the background research right to understanding the company looking at their financials how they've evolved over the years yeah right and then even um like last week we looked at suppliers new entrance whatever you want to look at the space that you're recommending that they enter to see what prospects will be in terms of suppliers for their goods whatever it is they're selling um who the potential competitors would be um we spoke about exchange rate Etc you want to look at the exchange rates for the different countries to see if this is going to be beneficial um for for for for the the company even in terms of imports or exports of of raw materials right um um you want to look at the threat of substitutes you're looking at chickfila for instance what are the the possible substitutes in the local market um that they could be entering and I'm hoping that years from now by the way I hear that somebody has open [Music] chickf it you want to make the case to them right so so Pretend This is like you're making the case and you're setting yourself up for a future business deal right supposed to any company any company locally or abroad project I'm interpreting his question to me that he's asking if um which company look Al for instance a Chick-fil-A can partner with that's how I the question right um so so yeah you want to look at all those and it seems like a lot which is why you begin thinking through build your models from now just have the model so you can drop in the points as you go along right so even if you look at the five forces model you can build that model you can start populating yeah man you can start populating right um we spoke about culture um that's going to be one of the top in fact what I'm going to do one of the final lectures I'm going to move up a little closer um because that will give you some more insights I don't necessarily want to deliver it late or last um so you have to rush to to to to use those in the project okay so I'll bring that final lecture up a bit um yeah we're talking about internal efficiency versus external and dynamic efficiency so look at the company right look at the company and assess what are its strengths and how we can actually utilize those strengths to give it an advantage in whatever Market you're suggesting it goes into okay um um questions F not yet soen wait until last minute right um so even like um I I gave the example of uh uh let's say it's a it's a merger of two companies if you're recommending that a merger takes place or something like that you have to think about the culture of the company that you'd be recommending partnership or anything like that with but you also have to think about the culture of the country that the business is going into is it going to throw up any surprises does a company need to plan anything different so if you're going into a d rep for instance and you exporting to the Dr you may need to put your your product description in Spanish right so things like that to think about so sometimes um and this is where the importance of being aware of the culture the context that you're going into so some of it seem so natural like these are things that you ought to think about and you ought to plan for it is is it isn't always the case that it happens which is why you guys are learning so when you are faced with these decisions or you go for an interview in a global company or firm even if the firm is local there are many local firms that are looking to internationalize right but they don't know how so even if you go into an interview for a firm you can as part of your interview strategy introduce this as an opportunity for the firm and give it some insights as to how it can go about doing that or some of the things that it could think about in doing that right so I mean it's interesting but we we look at competitiveness and we're talking about Nations and firms these are tools that give you added um confidence when you go to a boardroom when you go to an interview room um because it gives you a wealth or broadens the Horizon in terms of the picture that you can present to the company where it can go what are its possibilities regardless of itself because we know small firms internationalize large firms also International right but it's how to get there and that you're are being equipped with tools and perspectives to inform how they can get done a lot of things happen with a ha and best dress case um if I would have could have um but again if you know some of the things to expect going in it helps right so no doubt they probably thought it is a cheap place yeah yeah but it still goes beyond that cuz the reality is there's a group in Haiti who will not leave yes and repacing fund is a problem they're they're fine the right um but yeah so guys again please do not wait until the last minute just put up the the documents there put up the the outfits the outline of the models and begin things as you go along fine tune them as you go along next week we have a guest lecture um so Diane Edwards who used to be with jro she's going to be coming to you so she would have a wealth of experience in terms of all the the impact of WTO all the rules regulations that we discussed she would have a broad lens as well in terms of how our business have fared what can be done um which is why it's good for you to start your projects because you will have her to ask questions about prospects and opportunities right and possible um Pathways into accomplishing whatever it is you whichever one of the companies you you set to to choose right so again begin thank you all right um I didn't show my last for don't worry the semer will be done soon [Music] J see you next week