Tony was the manager of the international division of a medium sized British manufacturer before dismissal. He was put in charge of a project that his company provided the monitors for private hospitals in a Latin American country. But Tony never had any export dealings, so he did not prepare well for this project; he made the mistakes for this international transaction. They include that the price, reduced payment, arbitration, trading house, unemployment, intellectual property, and so on.
This paper will introduce the background of the Tony's story, and analyse Tony's mistake, the methods of solution with international trade theory.
World trade developed rapidly after the World War Ã¢Â Â¡, the each country became both manufacturer and consumer in the world. International companies were established, as the economic bridges, to link each country together. International business comes into being competition, at the same time, the conflict of interest occurs.
Due to own benefit, the economic policies of each country not only support world trade growth, but also protect national economic benefit.
The international institutions, for example GATT, WTO, increased the development of international business, and resolve the economic conflict of nation to nation.
This paper will analysis Tony's mistakes with viewpoints of international business, discuss how to avoid these mistakes.
The background of case study
This case study states the failure of international business of a medium sized British manufacturer. Tony, as the manager of the international division, charged the project of providing the monitors to the hospitals in a large Latin American country. The order was too large for the company's existing manufacturing capacity, Tony found an Asian company which could supply a costly and crucial computer component, so the exported monitors were sold at a price less than monitors sold in the British market.