Tuesday, January 28, 2020

Internationalization Strategies: European Car Makers

Internationalization Strategies: European Car Makers The Automobile industry is one of the truly most global industries in the world today. The automobile has changed the lives, culture, and economy of the people and nations that manufacture and demand them. Ever since the late 1800s when the first modern car was invented by Benz and Daimler in Germany, the industry has grown into a billion dollar industry affecting so many aspects of our lives. It covers a global community catering needs which may be common among the entire community or specific to a particular community. Its challenging for the Managers and their companies to develop a strategy that outrun their competitors and serve their global customer base. Automotive Industry in Europe at a Glance The automotive industry is a major industry in the European economy involving a few vehicle manufacturing firms and about 2/3 of the production is outsourced to a substantial number of independent suppliers. The produce includes cars, light trucks and vans, buses and coaches, medium and heavy trucks, motorcycles and agricultural and forestry tractors. A lot of mergers and acquisitions have been the routine of the automotive industry. Currently DaimlerChrysler, Volkswagen (VW), BMW, Ford Europe, General Motors (GM) Europe, Renault, PSA (Peugeot-Citroà «n), Fiat and Porsche comprise the main EU car industry. Beside them, there are a good number of small manufacturers apart from some Japanese manufacturers production facilities in the EU. The Internationalization strategies by European car makers The car industry as a whole is much internationalised as it is easy to do business in different parts of the world. To an extent, a lot of multinational corporations of the industry are heavily based in their domestic markets for several reasons, such as cheaper labour and creating jobs for the local inhabitants. When it comes to sales, the industry is perhaps more global, for example in the USA, one of the top three leading cars Toyota is a Japanese company that has much of its production facilities and technical development in Japan but according to Data monitor- industry profile. The internationalisation of the industry has a long history as the car industry itself is old and prolific. The American car industry is said to date back to 1908 when the first automobile was built. Internationalisation is slightly older and has been linked with the ending of world war two for the majority of developed countries; however it is a fairly newer concept in emerging markets. Institutional differences are apparent as many companies entered emerging markets, such as Ford, an American manufacturer, entered many emerging markets such as the Japanese and Chinese. There are still trade barriers in many parts of the world but not many affect the selling of cars. The speed of internationalisation depends on the country where the car originates. In more economically developed countries it makes sense that the speed of internalisation is fast and furious, for example many countries aspire to live life in the American lifestyle, therefore the sale of American cars in emerging markets occurs at a faster rate than the other way round. Although recent events suggest this is no longer true, as now Japanese cars are outselling American cars in the USA industry. Japanese internationalisation occurred at a slower rate at first but then it took off as soon as other continents industries slowed and so Japan were able to capitalise. Volkswagen- volume and diversity model (Boyer and Freyssenet, 1999) Toyota- Profit Strategy (Keeping the total cost low, no matter in what market they are operating) Honda practiced Profit Strategy based on innovation and flexibility. Producing models with distinct features and launching them quickly before the competitors could copy them Companies such as GM and Fiat have reactivated a strategy based on volume and diversity by increasing the commonalisation of platforms; by re-engineering their equipment-making subsidiaries in such a way as to regain control over the value chain; and by developing employee polyvalence. PSA tried to implement a strategy based on the permanent reduction, irrespective of output, of costs, but the French group had to abandon this orientation when its employees took industrial action, and it has reverted to its previous emphasis on volume and diversity. Ford, which had pursued the same line, shifted towards a volume based strategy, and tried to design and sell world cars, each of which with its own platform. Chrysler was at first unclear about the direction to take, but then made the decision to modify its profit strategy so as to emphasise innovation and flexibility .For Renault and Rover, quality became the top priority and each firm has tried to upgrade its market presence, repositioning itself in its segments top half. Renault subsequently focused on innovation, but has progressively discovered that such an approach would require the complete re-organisation of its corporate structures. (Boyer and Freyssenet, 1999) Geographical characteristics of Internationalisation About 20 yrs back one can argue that the automobile industry was just concentrated in U.S, Europe and Japan. But Due Globalisation and aggressive Internationalisation strategies used the manufactures, the market is moving towards the developing the economies. Due to recession and saturated market in U.S and Japan the more sales are happening in the developing economies. Within the EU the top five Automobile producing countries are Germany, France, Italy, Spain and U.K and in the world the top five are Japan, U.S, China, Germany and France. The European market is the largest markets in terms of production (33%) followed by Japan (20%). Though ACEA 2010 reports states that China will soon overtake Japan and the U.S in terms of Production and sales of Automobiles. The stats also shows that big markets that once accounted for most of the production and sales are now saturated and diminishing. Manufactures has now moved into the emerging economies to reap the high growth rate and economic conditions prevailing in many of these economies. An e.g. for this is the growing number of production and assembly plants in countries like Brazil, China, India, Mexico, South- Korea, Poland. Entry strategies by European carmakers The European drive into central Europe has been spearheaded by Volkswagen and Fiat, both of whom see the region as a vital part of their global strategies, even if managerial resources are being strained in an effort to obtain a return on investment. Eastern Europes market can be split into two distinct areas: the Central European Free Trade Area (CEFTA) consisting of Poland, the Czech Republic, Hungary, Slovenia and Slovakia and the rest. Naturally, it is the former that is attracting Western attention, especially as sales in the CEFTA are running at around 600,000 per annum and are likely to rise at 10 per cent a year for several years to come, with VW and Fiat each commanding 25 per cent of the market. Fiats main interest lies in Fiat Auto Poland which it acquired in 1992 through its purchase of Fabryka Samochodow Malolitrazowich (FSM) and since then has exported 50 per cent of output to Western European markets. At the time of purchase FSM was riddled with the inefficiencies comm only found in state-owned automakers in Central and Eastern Europe, but Fiat pledged to invest $2 billion in Poland by the year 2000, and part of this at the time of writing is being used to finance production of its Palio models which it hopes to sell worldwide. Turning to Russia, Fiat in 1997 embarked on an $850 million project with ZAO Nizhegorod Motors, owned by GAZ of Nizhy Novgorod to produce 150,000 Palio units a year. Fiat and ZAO each have 40 per cent of the equity with the remaining 20 per cent funded by the European Bank for Reconstruction and Development (JustAuto.co. 2000; Automotive News, 1996b). Volkswagen holdings in the East are due to its acquisition of Skoda and the taking over of former Trabant plants in the former East Germany. VW has already diversified and modernised Skodas model range and will use these to drive into emerging markets in the area, including Russia, Poland and Belarus. Despite the workforce being well educated and skilled, VW did not always find it easy to persuade Eastern workers to adapt to Western production methods and this is best illustrated in its former Trabant plant at Zwickau. The plant was modernised to produce the Polo and Golf models, but workers experienced severe cultural difficulties in adjusting to modern production methods despite being given extensive training. Building a Trabant involved considerable physical effort just to get the body parts to fit together and this gave a sense of achievement for the workers. Though modern technology and lean production methods removed the physical effort, it also took away the sense of pride and it took VW a considerable time to persuade the workforce of the virtues of modern technology. Nevertheless, both Fiat and VW are firmly installed in Eastern Europe and are about to be joined by Renault which has signed an agreement joining forces with the Moscow City Authorities to build cars in an old Moskvich plant. Of the European producers, VW and Fiat are clearly the most dominant in Eastern Europe and, provided resources are not overstretched, will probably gather a considerable harvest in the future compared to their rivals. But the European arms of both Ford and GM are moving in the same direction, too. Besides being established in Belarus and Poland, Ford has formed a joint venture with Bankirski Dom, near St Petersburg and GM have entered into a similar arrangement with AvtoVAZ at Togliatti, 1,000 kilometres south east of Moscow (Automotive News, 1996b). Finally, stretching beyond the frontiers of Eastern Europe, European firms are currently attempting to establish themselves in China. It was Peugeot that made the initial running when, in the early 1980s, it formed a joint venture in Guangzhou to produce its 404 and 505 models. Neither vehicle was suited to the Chinese market. They were too large, unsuitable for the roads and considered old fashioned by the Chinese when compared to other Western models. In the end, no more than 20,000 units were produced in any one year, and in 1998 Peugeot were forced to withdraw from the market. As Peugeot withered in the market, its other arm, Citroen, prospered in a new joint venture at Wuhan where a stripped down version of the ZX is produced in approximately 15,000 to 20,000 units per annum, a figure that will rise sharply in the coming years (Donnelly and Morris, 1997). Volkswagen by contrast have been far more successful in its joint ventures with the Shanghai Automobile Industrial Corporatio n and the First Auto Works at Changchun in Jilinn Province in the north east of the country. Since the mid-1980s, VW has produced its Santana model in China with frequent updating and has recently introduced its more modern Jetta, Passat and Bora models. These ventures have proved successful in that VW have roughly 50 per cent of the taxi market in China, but have yet to obtain any return on their capital as they, like other multinationals in other countries, have discovered the Chinese market is no crock of gold (Donnelly and Morris, 1997, JustAuto.co., 2000c). While other European firms such as Mercedes and Renault have signed declarations of intent with the Chinese and are waiting to see how the market develops, both Ford and GM have moved further down the road and have begun production at Changan and Guangzhou respectively. Similarly, Chinese hostility to Japanese producers has waned and both Suzuki and Toyota have begun to compete in the market. Current opinion is that the Chin ese market will grow steadily in the coming century and that it is better to enter this market in its infancy than to hesitate. The ball is firmly in the European court and firms must either gamble now on the prospects of return in the future or they might be too late. An outline of the main foreign market entry modes and An overview of the enterprise structures and controls used by firms Ford of Europe was founded in 1967 on a merger between the British and German divisions of the Ford Motor company. Founded in Detroit, Mich., in 1903 by Henry Ford and a group of investors, the company introduced the hugely successful Model T in 1908 and by 1923 was producing more than half of all U.S. automotive vehicles. Through the Lincoln Motor Co. (acquired in 1922), Ford produced luxury Lincolns and Continentals. After years of declining sales, the Model T was succeeded by the Model A in 1927; other companies such as General Motors took the opportunity to make serious inroads into Fords dominance. The company was reincorporated in 1919, with Ford and his family acquiring full ownership. Later acquisitions included Aston Martin and the Land Rover brand of sport utility vehicles. Ford also owns a significant share of the Mazda Motor Corp. Because of financial struggles at the beginning of the 21st century, the company sold off Aston Martin in 2007 and both Jaguar and Land Rover i n 2008. However, Ford occasionally outsells Toyota in shorter periods (most recently, during the summer months of 2009). As of 2008, Ford has become the second largest automaker in Europe (only behind Volkswagen), with sales that occasionally exceed those in the United States and large markets in Germany, Italy, and the United Kingdom. ( PaddockTalk). Ford Motor Co bought into China as a quick and low-cost way of entering the market. In contrast to Chrysler and GMs JV approach in China, Ford chose to acquire 20% of Jiangling Motor, a relatively small local auto producer. This helped in establishing their presence much quicker than their competitors and removed most of the barriers their competitors were facing such as management control and conflict. The European drive into central Europe has been spearheaded by Volkswagen and Fiat, both of whom see the region as a vital part of their global strategies, even if managerial resources are being strained in an effort to obtain a return on investment. Eastern Europes market can be split into two distinct areas: the Central European Free Trade Area (CEFTA) consisting of Poland, the Czech Republic, Hungary, Slovenia and Slovakia and the rest. Naturally, it is the former that is attracting Western attention, especially as sales in the CEFTA are running at around 600,000 per annum and are likely to rise at 10 per cent a year for several years to come, with VW and Fiat each commanding 25 per cent of the market. Fiats main interest lies in Fiat Auto Poland which it acquired in 1992 through its purchase of Fabryka Samochodow Malolitrazowich (FSM) and since then has exported 50 per cent of output to Western European markets. At the time of purchase FSM was riddled with the inefficiencies comm only found in state-owned automakers in Central and Eastern Europe, but Fiat pledged to invest $2 billion in Poland by the year 2000, and part of this at the time of writing is being used to finance production of its Palio models which it hopes to sell worldwide. Turning to Russia, Fiat in 1997 embarked on an $850 million project with ZAO Nizhegorod Motors, owned by GAZ of Nizhy Novgorod to produce 150,000 Palio units a year. Fiat and ZAO each have 40 per cent of the equity with the remaining 20 per cent funded by the European Bank for Reconstruction and Development (JustAuto.co. 2000; Automotive News, 1996b). Volkswagen holdings in the East are due to its acquisition of Skoda and the taking over of former Trabant plants in the former East Germany. VW has already diversified and modernised Skodas model range and will use these to drive into emerging markets in the area, including Russia, Poland and Belarus. Despite the workforce being well educated and skilled, VW did not always find it easy to persuade Eastern workers to adapt to Western production methods and this is best illustrated in its former Trabant plant at Zwickau. The plant was modernised to produce the Polo and Golf models, but workers experienced severe cultural difficulties in adjusting to modern production methods despite being given extensive training. Building a Trabant involved considerable physical effort just to get the body parts to fit together and this gave a sense of achievement for the workers. Though modern technology and lean production methods removed the physical effort, it also took away the sense of pride and it took VW a considerable time to persuade the workforce of the virtues of modern technology. Nevertheless, both Fiat and VW are firmly installed in Eastern Europe and are about to be joined by Renault which has signed an agreement joining forces with the Moscow City Authorities to build cars in an old Moskvich plant. Of the European producers, VW and Fiat are clearly the most dominant in Eastern Europe and, provided resources are not overstretched, will probably gather a considerable harvest in the future compared to their rivals. But the European arms of both Ford and GM are moving in the same direction, too. Besides being established in Belarus and Poland, Ford has formed a joint venture with Bankirski Dom, near St Petersburg and GM have entered into a similar arrangement with AvtoVAZ at Togliatti, 1,000 kilometres south east of Moscow (Automotive News, 1996b). Finally, stretching beyond the frontiers of Eastern Europe, European firms are currently attempting to establish themselves in China. It was Peugeot that made the initial running when, in the early 1980s, it formed a joint venture in Guangzhou to produce its 404 and 505 models. Neither vehicle was suited to the Chinese market. They were too large, unsuitable for the roads and considered old fashioned by the Chinese when compared to other Western models. In the end, no more than 20,000 units were produced in any one year, and in 1998 Peugeot were forced to withdraw from the market. As Peugeot withered in the market, its other arm, Citroen, prospered in a new joint venture at Wuhan where a stripped down version of the ZX is produced in approximately 15,000 to 20,000 units per annum, a figure that will rise sharply in the coming years (Donnelly and Morris, 1997). Volkswagen by contrast have been far more successful in its joint ventures with the Shanghai Automobile Industrial Corporatio n and the First Auto Works at Changchun in Jilinn Province in the north east of the country. Since the mid-1980s, VW has produced its Santana model in China with frequent updating and has recently introduced its more modern Jetta, Passat and Bora models. These ventures have proved successful in that VW have roughly 50 per cent of the taxi market in China, but have yet to obtain any return on their capital as they, like other multinationals in other countries, have discovered the Chinese market is no crock of gold (Donnelly and Morris, 1997, JustAuto.co., 2000c). While other European firms such as Mercedes and Renault have signed declarations of intent with the Chinese and are waiting to see how the market develops, both Ford and GM have moved further down the road and have begun production at Changan and Guangzhou respectively. Similarly, Chinese hostility to Japanese producers has waned and both Suzuki and Toyota have begun to compete in the market. Current opinion is that the Chin ese market will grow steadily in the coming century and that it is better to enter this market in its infancy than to hesitate. The ball is firmly in the European court and firms must either gamble now on the prospects of return in the future or they might be too late.

Monday, January 20, 2020

The Lives of the Inuit Essay -- World Civilization

When you mention Alaska and the Arctic Circle, one envisions igloos, dog sleds, and invariably, Eskimos. However, little do most know, that what most refer to as Eskimos is actually a generalization representing three distinct groups. In order to understand the societies that live in this region and acknowledge their cultural differences we must explore the different groups that inhabit this region of which there are two: the Inuit, and the Yupik. For the purposes of this discussion we will focus on the lives of the Inuit. The Inuit are a group of people often mischaracterized as Eskimos. They lived in the area of central and northeastern Canada and Greenland. There has been much discussion of the orignination of this group of people but the most recognized theory is that they crossed from northern Asia across thin bridge of land over the Bering Strait sometime around 6000-2000 BC. Many people mistakenly think that the Inuit and Native Americans are one in the same. It seems that the Inuit most likely came from Asia more likely than the Native Americans. Although both probably came to the Americas through the Bering Strait. Biological, cultural and dialect differences show the different origin. Much of this theory is supported due to the close resemblance of the Inuit to the Mongoloid races of Eastern Asia. Because of the harsh land and climate of the Arctic, this area was probably one of the last regions to be inhabite d making the Inuit on of the earth’s younger cultures. A large portion of the Inuit culture was developed based upon the need to survive. Migratory societies such as the Inuit were driven by the need for food to feed its members, by the availability of trade to secure resources not normally available ... ...ith many fluctuations in prices due to fashion trends, especially in Europe. With the growth of the animal rights movement in the 1960s, fur prices decreased to the point that the industry was only barely sustainable. At the same time, the HBC trading posts had morphed into retail stores, and were doing a different kind of business across the North. They exist today as the Northern Store in the communities, a sort of grocery plus department store. Works Cited Jones, J. Sidney. (2012). Inuit, . Retrieved March 11, 2012, from http://www.everyculture.com The Inuit Culture. (2009). Retrieved March 10, 2012, from http://www.mythicjourneys.org Frederic V. Grunfeld (Ed.), Oker: Spiele der Welt II. (in German) Fischer, Frankfurt/M 1984. ISBN 3-596-23075-6 Pulaarvik Friendship Kablu Centre (2007). Retrieved March 7,2012, from http://www.pulaarvik.ca

Sunday, January 12, 2020

Chinese Nationalist Party Essay

On 1 October 1949, Mao Zedong, leader of the Chinese Communist Party declared victory over the Nationalist Party (Guomindang) and brought an end to four brutally long years of Civil War. The Communist victory in the Civil War has however, created significant debate among historians, namely: was a Communist victory inevitable and if so is it more sensible to see the Chinese Civil War as a Communist victory or as a Nationalist defeat?When researching these questions it becomes blatantly obvious that the Guomindang government led by Chiang Kai-Shek was riddled with problems and they are very much the cause of their own downfall. Widespread government corruption, spiraling inflation, loss of public confidence and intractable poverty are just a few of the failings the Guomindang afflicted upon the Chinese people. These monumental failings make a Communist victory seem almost inevitable, in that they just happened to be there to assume power as the Nationalists lost support and drowned in their own mistakes. In this sense it is more sensible to view the Civil War as a Nationalist defeat, rather than a Communist victory. On the other hand, the Communists were able to turn dismal rural poverty and the Japanese invasion into assets, using them to convince villagers that radical change was imperative and that the Communist Party was best qualified to bring about this change. Seen in this light, superior strategy and organisational methods allowed the Communists to achieve victory and not just â€Å"move into a vacuum† as suggested by Barnett (Barnett, 1965: 1). There is certainly an element of inevitability with regard to the Communist victory, however, in this essay I will argue that not only was the outcome of the Chinese Civil War not preordained, but I will also critically evaluate the reasons the Guomindang lost the Civil War and explain that given their policy mistakes, the Civil War should be seen as a Nationalist defeat rather than a Communist victory. If the Nationalists had been willing to adapt and had they initiated some changes in their strategies, the Communist Party, no matter what its internal organisation or external strategies, would not have been able to bring revolution to China. This theory is not supported by Kubek, who argues that the cause of the  Nationalist defeat was due to a lack of aid from the United States, declaring â€Å"sovietisation of China and Manchuria could be the only logical outcome of post-war United States policy in China† (Kubek, 1965: 62). This view point is unduly simplistic and overvalues America’s role in China, an opinion supported by Chang, who believes the Guomindang government’s â€Å"failure was due not so much to lack of American support, but to its inherent defects† (Chang, 1965: 40). Before analysing these inherent defects and the reasons that the Nationalist Party lost the Civil War, it is important to understand the fundamentals of the situation in China at the end of World War Two; specifically the consequences of the eight year war with Japan that totally exhausted the Guomindang militarily, economically and spiritually. Hsu argues that the war with Japan is the â€Å"single most important cause for the downfall of the Nationalists† and â€Å"had there been no Japanese war, the situation in China would have been very different† (Hsu, 1990: 734). Many of the Guomindang’s problems such as factionalism, corruption and leadership were prevalent prior to the Sino-Japanese War; however it was during the last phases of the Sino-Japanese War that these problems reached crisis proportions and in hindsight it seems impossible that the Guomindang could have overcome these problems to defeat the Communists (Service, 1965: 29). Chang also believes that the Guomindang faced insurmountable problems prior to the Civil War, stating that â€Å"the government of Chiang Kai-Shek was built on quicksand and clay. How can it stand? Is it any wonder that it fell like a house of cards when it had to face the Communist crisis?† (Chang, C. 1965: 41). Westad, (2003: 7) however argues that â€Å"in spite of the Guomindang’s weaknesses, the outcome of the post-war conflict with the Communists was no way predetermined in 1945†. At the end of the Sino-Japanese War the Guomindang held significant advantages over the Communists, with its widely recognised legitimate government controlling China, giving it the power to tax and conscript. On the other hand, the Communists could not match the Guomindang’s troops in terms of training and equipment and could be  Ã¢â‚¬Å"outgunned and outmanoeuvred in all major regions of the country† (Westad, 2003: 8). Furthermore, the Communist party was hardly represented in the cities at all, which of course was the power base of the Guomindang. However, the Communists also had successes resulting from the war with Japan including increasing their area of control and practiced evolving their strategies of protracted guerrilla warfare against the Japanese which in turn generated public support. Despite this the party’s main forces were still located in North-west China and they were not in such a powerful position that a civil war with the Guomindang would be a mere formality in securing control of the country. The Civil War is therefore simply not a case of the imminent decline of the Guomindang and the Communists’ irresistible rise. Rather the Sino-Japanese War provided the framework for the decisions and strategies that would ultimately lead to Nationalist defeat. The war with Japan left the Guomindang decimated and they did need to undergo reform in order to survive; however the factionalism and corruption within the Guomindang resulted in increasingly repressive controls being implemented upon the war weary Chinese people. At a time when new strategies were needed, the government instead continued its repressive controls and when war again broke out, the government lost even more support and collapsed with cataclysmic speed. This was due in no small part to the leadership of the Guomindang, whose perpetuation of their own power dominated over all other considerations (Service, 1965: 28). The arrogance and mismanagement of the Guomindang alienated the Chinese people and caused a loss of public confidence and respect. This loss of respect not only resulted in the Nationalists losing influence in their own power bases, but made it easier for the Communists to exploit this public disharmony and encourage the Chinese people to think that a change in administration would bring about a change in their fortunes. An example of the Guomindang’s poor leadership strategies can be seen in their occupation of former Japanese colonies (Service, 1965: 29). The Chinese citizens within these Japanese occupied territories had waited eight  years for the return of Nationalist rule, but instead of being treated as victims of war, they were exploited. The Guomindang leaders did not return their land but acquired it as their own property; moreover, they virtually eliminated the monetary assets of these people. This was caused by the currency in the occupied territories going through extreme inflation as the government only offered the exorbitant exchange rate of two hundred to one; when a more reasonable rate would have been half that much (Phillips, 1996: 158). Furthermore, the puppet leaders that had been installed by the Japanese often kept their positions or became members of the Guomindang. Poor policy decisions such as this would lead to the downfall of the Guomindang, as it is impossible to fight an effective war without the support of the people and the economic policies of the government alienated millions of suffering people. The Guomindang’s economic problems were not limited to the territories formerly occupied by the Japanese. All over China inflation was an exceptionally large problem, for as the increases seen during the Japanese War were allowed to spiral out of control during the Civil War. Service, (1965: 29) argues that this is a direct result of corruption within the Guomindang, and that they refused to take any effective steps to check inflation or implement agricultural reforms for fear of losing the support of the landlord class in China. In view of this, the Guomindang developed urban industry at the expense of agricultural and financed this by simply printing more bank notes. Their economic mismanagement was disastrous for the majority of the Chinese people and meant that by 1948 government expenditure had become thirty times larger when compared to its pre-war level; the budget deficit had also blown out to thirty times it pre-war level and inflation was increasing at the rate of thirty per cent a month (Chang, K. 1965: 23). The Nationalist government faced imminent financial doom and the Chinese people were becoming aware of the selfish nature of their government whose economic policies and financial mismanagement destroyed the livelihood of hundreds of millions of Chinese. The failings of the Guomindang would provide the Communist party with ample opportunities to exploit the discontent of the Chinese people. This was one of the reasons for the Communist victory in that they were able to gain the support of people from the rural areas who the Guomindang had alienated. An example of this can be seen in the rural land reforms implemented in newly gained territories. In these areas the Communists promoted production and ensured supplies by creating a self-sufficient economy. To rouse the productive enthusiasm of the peasants, they launched a campaign to reduce rent and interest. Peasant associations and other organisations were urged to demand and enforce a 25 percent rent reduction, with a rent ceiling set at 37.5 percent of the crops. The interest rate on loans was limited to 1.5 percent a month, or 18 percent a year, much lower that the excessive rate formerly charged by the landlords (Westad, 2003: 11 and Fielding, 1999: 134). They were able to achieve these reforms without confiscating large amounts of land, as considerable redistribution of land to the peasants was accomplished by impo sing graduated taxes in such a way that larger landholders voluntarily sold land because it was no longer profitable. It is arguable that the Communists had no intention of eliminating the economic power of the landlords, but instead they showed the peasants that they could exercise their power locally and play an active role in the war against a government that some had come to despise. The Communists gave the peasants what they wanted: an army of friendly troops who not only did not steal their crops but helped them bring in the harvest and who implemented popular but gradual economic reforms (Ebrey, 1996: 289). This is in stark contrast to the Guomindang who did not understand the peasants and showed no interest in aiding them. They failed to see the revolutionary potential of the peasant masses and unlike the Communist Party never attempted to organise them. This situation was best summarised by Hsu: â€Å"the stone that one builder had rejected became the cornerstone of the other’s house† (Hsu, 1990: 738). However, many of the most important cause of the Nationalist defeat during the Civil War were military ones. Despite emerging from the Japanese War better equipped and trained, the Nationalist Army was a tired force (Hsu, 1990: 734). This war-weariness was felt throughout China and there was  widespread recognition that full scale civil war would be a tragedy for the country. It is therefore, not surprising that the Guomindang’s persistence in military aggression towards the Communists, who were Chinese after all, failed to arouse the same patriotic loyalty as when the enemies were Japanese (Stuart, 1965: 19). Given this situation the Nationalist Army needed good leadership and to gain the support of the people; they were unsuccessful on both counts. This was largely due to the leadership system created by Chiang Kai-Shek that was â€Å"a congerie of conservative political cliques† concerned primarily with maintaining their own power (Service, 1965: 30). Furthermore, the highest military posts were reserved for those who like Chiang Kai-Shek had graduated from the Whampoa military academy and this often meant that more talented officers were turned away. General Barr of the United States said of the Guomindang leadership in 1949 that, â€Å"their military debacles in my opinion can all be attributed to the world’s worst leadership and many other morale destroying factors that lead to a complete loss of will to fight† (Barr, 1949: x quoted in Bianco, 1971: 180). In fact, many battles were lost by the Nationalists without a fight, as hundreds of thousands of troops simply defected or surrendered to the Communists (Barnett, 1965: 5). An example of this may be seen during the Huai-Huai Campaign, where poor military leadership caused the Nationalist troops to become surrounded and resulted in an irreparable loss of manpower without a fight (Phillips, 1996: 158). Rather than undertaking offensives to seek out and destroy the main mobile guerrilla units of the Communists, they holed up for the most part in isolated, vulnerable, defensive positions allowing the Communists to concentrate their forces and attack and overwhelm Nationalists’ positions one by one (Barnett, 1965: 5). This strategy played into the hands of the Communists whose primary goal was to reduce the numbers of the Nationalist army. They were not concerned with holding specific geographic areas and this allowed them to be a lot more flexible in their attacks. Moreover, the Communist troops were ordered to avoid large battles and to engage the enemy only when there was a high probability of victory. Mao Zedong argued that the only way guerrilla warfare could succeed  is if the army had the support of the people, and the Communists certainly had this (Mao Zedong, 1940: x cited in Bianco, 1971: 184). The Communists successfully achieved this through the use of propaganda. They portrayed themselves as defenders of the nation and the Guomindang as enemies of all levels of society, from peasant to scholar (Chang, C. 1965: 40). Chiang Kai-shek himself admitted that the Nationalists failure in propaganda â€Å"was a major defect in our struggle against Communism† (Kai-shek, 1965: 77). Despite this, the Nationalist army had many opportunities to seriously weaken the Communists. However, their leadership too often committed crucial tactical mistakes, which were the result of lack of communication and disputes within the party caused by the factionalism that riddled the Guomindang leadership (Westad, 2003: 11). Clique politics and factionalism would eventually lead to the situation where unified action to either solve the problems in Nationalist held territory or to fight against the Communists became virtually impossible (Barnett, 1965: 6). This is in stark contrast to the leadership of the Communist armies, whose generals were not concerned with personal gain, but instead co-operated with each other and gained the support of the Chinese people and worked towards a united goal (Westad, 2003: 9). These superior military tactics and aforementioned economic reforms brought the Communists wide spread support and ultimately victory. However, this victory would never have been achievable were it not for the military, economic and social failings of the Guomindang. Chiang Kai-Shek himself admitted major defects in organisation and technique in the Nationalists’ war against Communism, however he argued that these defects were remediable, â€Å"so long as our strategy and policy were correct, I believe we still could have won† (Kai-Shek, 1965: 82). It is in this light that the Chinese Civil War should be viewed not as a Communist victory, but as a Nationalist defeat. There is no doubt that the war against Japan was a crushing blow to the Nationalists economic and military power, however it was not fatal. The  Nationalist government could have continued to consolidate its power and authority by the sheer weight of its military strength and financial resources (Tsou, 1965: 28). Even though the Nationalist government was far from popular, it was the most powerful military and economic force in China and could have survived if it had been willing to regain the support of the people. Defeat to the Communists was therefore, far from inevitable, and the Nationalists were very much the engineers of their own demise. BIBLIOGRAPHY Barnett, A. (1965), ‘Multiple factors’, in Pichon Loh (ed.) ‘The Kuomintang Debacle of 1949: Conquest or Collapse?’ D.C. Heath & Company, BostonBianco, Lucien. (1971), ‘Origins of the Chinese Revolution, 1915-1949’ Stanford University Press, StanfordChang, Carsun. (1965), ‘Chiang Kai-shek and Kuomintang dictatorship’, in PichonLoh (ed.) ‘The Kuomintang Debacle of 1949: Conquest or Collapse?’ D.C. Heath& Company, BostonChang, Kia-Ngua. (1965) ‘War and Inflation’ in Pichon Loh (ed.) ‘The Kuomintang Debacle of 1949: Conquest or Collapse?’ D.C. Heath & Company, BostonEbrey, Patricia. (1996), Cambridge Illustrated History: China, Cambridge University Press, Cambridge, EnglandFielding, Mark & Morcombe, Margot. (1999), ‘The Spirit of Change – China in Revolution’ McGraw Hill Book Company, Roseville, NSWHsu, Immanuel C.Y. (1990), ‘The Rise of Modern China’ Oxford Univer sity Press, New YorkKai-shek, Chiang 1965, ‘Communist designs and Kuomintang blunders’, inPichon Loh (ed.) The Kuomintang Debacle of 1949: Conquest or Collapse?, D.C. Heath & Company, BostonKubek, Anthony 1965, ‘Communist subversion and American appeasement’, inPichon Loh (ed.) The Kuomintang Debacle of 1949: Conquest or Collapse?, D.C. Heath & Company, BostonPhillips, Richard. (1996) ‘China since 1911’ St Martin’s Press, New York. Service, John S. 1965, ‘The enthronement of reaction’, in Pichon Loh (ed.)The Kuomintang Debacle of 1949: Conquest or Collapse?, D.C. Heath & Company,BostonStuart, John L. (1965), ‘Popular Discontent and Creeping Paralysis’, in Pichon Loh (ed.)The Kuomintang Debacle of 1949: Conquest or Collapse?, D.C. Heath & Company,BostonTsou, Tang 1965, ‘Contradictions between program and practise’, in PichonLoh (ed.) The Kuomintang Debacle of 1949: Conquest or Collapse?, D.C. Heath& Company, BostonWestad, Odd Arne 2003, Decisive Encounters: the Chinese Civil War 1946 -1950, Stanford University Press, California

Saturday, January 4, 2020

Impact of Driving Forces of Globalization - 2153 Words

Name of Paper Presenter : Mrs. Sandhya Milind Khedekar Designation : Name of the College : Lecturer Thakur Shyamnarayan College of Education Research, Kandivali (East), Mumbai. Title of the Paper : Impact of driving forces of Globalization – Role of Education Globalization has come to be a principal characteristic feature of the new millennium and it has become an inescapable reality in todays society. No community and society can remain isolated from the forces of globalization. The cyber society has come with a bang. The computer culture is spreading rapidly. Even in a poor country, coca-cola, cars, cosmetics and clothes seen in the cities and towns hide the reality of poverty and suffering of the people. We have almost reached a†¦show more content†¦While some nations have tremendous economic advantages, others have become more and more dependent. The main players in the present process of globalization are the governments of powerful nations, transnational cooperation, the World Bank and the WTO. The development of all third world countries has to be related to the world market. They control the monetary system and international trade. The multinationals and other institutions with the help of the state control all developmen t processes. The role of developing countries is simply to provide cheap labour to attract investors and to provide raw materials, which are at the mercy of fluctuating prices. They are to meet the needs of others as cheaply as possible. This unfettered growth of the multinationals and the emphasis on foreign trade are not conducive to a development pattern that is oriented to the basic needs of the people. The production needs and patterns are often determined by the market forces. It is unfortunate that they seldom take into consideration the basic needs of the people. Only the stronger and successful competitors survive and thereby widening the gap between the rich and poor, both between countries and within country. One cannot deny that there has been a worldwide growth in poverty, inequality and the human misery. Social injustice is becoming an accepted reality. Indeed, it has created a situation of marginalization, exclusion and socialShow MoreRelatedCulture Drives Globalizati on Essay1559 Words   |  7 PagesThe term ‘globalization’ did not come about till the twentieth century however the processes of globalization had been around since the era of imperial domination. â€Å"The controversy surrounding the on-going debates about globalization is whether unfettered market forces will further diverge or converge income the world over. On the one hand, proponents of globalization say it has promoted information exchange, led to a greater understanding of other cultures, raised living standards, increased purchasingRead MoreGlobalization : A New Way For International Trade1392 Words   |  6 Pagesgrowing. While that sounds promising, globalization is also becoming one of the most debated issues and coming under much criticism. Mostly that is because world trade runs by industrialized countries and big corporations. While globalization can benefit some countries, it could also hurt others. First and foremost, what is globalization? When many countries allow free trade it opens a new way for international trade which leads to globalization. The term globalization is the increase in global relationshipsRead MoreImpact Of Globalization On The Automobile Industry1187 Words   |  5 PagesEli Vaye BADM 360 S02 Globalization is a key factor driving change and innovation in multiple industries. The expansion of borders, products, ideologies, and companies has created a new global market and force companies to expand their horizon beyond domestic consumers. An industry Globalization has had a dramatic impact on is the automobile industry. The dynamics of the automobile industry has expanded largely from a domestic industry to a completely global industry in which multiple companiesRead MoreNegative Effects Of Globalization1552 Words   |  7 PagesGlobalization has negative and positive effects that impact all levels of everyday operations from the international community through regions to individuals. Some oppose the changes it brings, some turn it to their benefit. The latest globalization wave carrying American values hit the Arab Spring particularly hard. The fight against conformation to American values intensified Jihad movements through terrorism against the Western world. Terrorist groups were able to utilize the same communicationRead MoreGlobalization Has A Long History1578 Words   |  7 PagesIntroduction Globalization has a long history. According to National Geographic Society (2015), globalization grew when the Europeans began establishing colonies overseas. Many of the early European explorers were eager to spread the Christian religion to the regions they visited. â€Å"The globalization of Christianity spread from Europe to Latin America through Christian missionaries working with the local populations† (â€Å"Globalization,† 2015). Globalization was accelerated in the 19th century with theRead MoreThe First Glimpse Of Globalization1573 Words   |  7 PagesGlobalization is the process in which a world-wide circulation of goods, ideas, and people takes place. Historically, there were two periods of profound expansion, the 15th and 16th century and 20th and 21st century. In both cases, these eras of globalization were preceded by periods of enriched thinking, sharing, and scientific revolutions. The renaissance is a prime example of an era when ideas and knowledge flourished and spread throughout Europe. This newfound age of discovery resulted in globalRead MoreStarbucks : What Key Driving Forces Coffee Shop Retailers?1352 Words   |  6 Pagesanalyzing Starbucks past, present and future, it’s important to look at the external situation that surrounds them. By performing a five forces analysis it can be decided if the industry is strong enough for outsiders to enter and prevail. The next consideration is what key driving forces coffee shop retailers should concentrate. Those forces are: increasing globalization, marketing innovation, changes in cost and efficiency and changing societal concerns, attitude and lifestyles. It’s also important toRead MorePositive Effects Of Globalization1361 Words   |  6 Pages Economic globalization refers to the â€Å"increasing interdependence of world economies† (Shangquan, 2000), as a result of free movement of goods, services, technology, capital, and information between countries and across borders. It is one of the three main areas of globalization; economic globalization moves at an increasingly fast pace as movement across borders progresses. While economic globalization has had many benefits and positive effects on both developed and under developed countries, itRead MoreGlobalization and Its Impact on International Business Essay1558 Words   |  7 Pages............3 What is Globalization....................................................4 The engines for Globalizations†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦5 Globalization’s impacts on international business†¦..7 The road ahead for international business†¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦9 Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..11 Reference†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦12 Introduction Every day we hear it on the news, read it in the papers, overhear people talking about it†¦ and in every single instance the word globalization seems to have a differentRead MoreTeaching And Learning Of The 21st Century1098 Words   |  5 Pagesgreater change in education. Our students are facing many difficulties like increased population, climate change, health deficiency, primary poverty and other environmental changes. Therefore, this technological revolution, social, economic and globalization changes have intended for new changes and developments in 21st century teaching and learning. Knowledge and understanding: 21st century teaching and learning: 21st century learning means that students are connected to other learners and resources