Answer To: In the second submission, discuss with references and application of theory/concept,...
Harshit answered on May 05 2021
Introduction
Home Market or Domestic Market:
The Home market, also known as the Home market or Home market, is a market for buying and selling goods and services within a country. Compared with international, foreign, foreign or global markets, its market is much smaller. For example, Apple Inc mainly operate in USA as their home market.
Host Market or Global Market:
Host trade refers to the trade of goods, services, technology, capital and/or knowledge that cross national borders on a global or transnational level. It includes cross-border transactions of goods and services between two or more countries. Capital, skills, and personnel for the production of host physical products and services, such as finance, banking, insurance, and construction. Host business is also called globalization. In order to conduct business abroad, multinational companies must build bridges between various national markets in the world market. Two macro factors emphasize the upward trend of globalization.
Since then, Apple’s retail business has expanded to 510 stores in 25 countries and regions, including Australia, Austria, Belgium, Brazil, Canada, China, France, Germany, Hong Kong, Italy, Japan, Macau, Mexico, the Netherlands. Singapore, South Korea, Spain, Sweden, Switzerland, Taiwan, Thailand, Turkey, United Arab Emirates, United Kingdom and United States.
Risk arises from a firm's liability of outsider ship
Liability for Foreigners (LOF) is a well-known concept in international business. LOF is based on the idea that companies in foreign markets will incur social and economic costs. Existing literature acknowledges that companies have the ability to overcome LOF during internships. Changes, but he did not discuss.
Considering Apple in this case there are two sources of TFO: green TFO and corporate TFO.It comes from the environment of the home country and the host country. On the other hand, business-based LOF is derived from the characteristics of the business, including ownership structure, business resources, training, and network connections (for example, ownership). Apple Inc. Belong to a group of companies. Compared with emerging market companies, the environment and corporate TFO of emerging market companies are different. Putting forward verifiable recommendations on how companies and environmental factors affect TFO, and provide directions for future research. (Acheampong, G. and Dana, L.P., 2017)
Differences between home and host markets increase a firm's liability of foreignness.
A. Home Market:
Apples environmentally friendly LOF originated in the country of origin i.e. U.S.A. The degree of institutional development in these countries and the degree of adaptation to various factors affecting various aspects of business activities vary. The institutions that affect LOF include three aspects: supervision, regulation and awareness. Regulatory agencies are more formal, while regulatory and cognitive agencies are more informal. Both the formal and informal aspects of an organization affect the way a country conducts business. Institutional economists believe that the sociological approach of institutions does not classify them as more or less developed institutions, and institutions in some countries are more developed than in others.
The major problem faced by Apple Inc. include difficulties in obtaining funds from external sources, Hire qualified employees and purchase raw materials at competitive prices. In addition to the degree of competition, each department also differs in the intensity of the use of knowledge in its activities. Knowledge-intensive industries are industries in which the core of activities and capabilities are mainly based on knowledge-based resources. Asset-based contains clear knowledge. Examples include patents, trademarks, and trade secrets, as well as tacit knowledge, which are stored in the minds of individual employees or embedded...