influence factors and countermeasures of international industrial cooperation

1、<p>　　Influence Factors and Countermeasures of International Industrial Cooperation</p><p>　　Abstract. This paper analyzes the importance of international cooperation, expounds the positive influence an

2、d negative influence brought by international cooperation, and then analyzes the impacts of international cooperation in the cultural, economic, geographic and regional factors, and puts forward the corresponding counter

3、measures. </p><p>　　Key words: Factors, Countermeasures, International industrial cooperation. </p><p>　　1. Introduction </p><p>　　Under the trend of globalization, politics, econom

4、y, culture requires us to strengthen international cooperation. This is because the main cause differences in global resource allocation, and geographical, historical and other reasons.To carry out international cooperat

5、ion, both positive side, also has negative effect. </p><p>　　Positive impact: international cooperation and effective use of world resources, provide more development opportunities for all countries, but als

6、o greatly enriched and convenience to people's daily life;international cooperation enables some countries to become more competitive, creativity and innovation, so that the country can be prosperous. The internation

7、al cooperation means that the new economic growth, although during this period there are risks to growth, but the developed countries and </p><p>　　Negative effects: due to the imbalance of social and econom

8、ic development, international cooperation may form some gap. In addition, under the background of economic globalization, the cooperation between countries with limited economic strength, economic structure and the lack

9、of complementarity, the gap between the developing countries also expanded, so that the further development of international cooperation is limited, challenges. </p><p>　　It seems that completely globalized

10、word has bound people, countries, and markets closer than ever, but distance still matters. It can be a dangerous endeavour for firms’ exploiting international market due to the reality of semiglobalization. CAGE framewo

11、rk equips us with the strategic tool for the company to assess risks of doing business in a new market and accordingly to choice its global strategy successfully. This essay will focus on the four basic dimensions restri

12、cted companies entering </p><p>　　Because, even if the global further fusion, existence of cross-border trade, but the boundary is still important, still amounted to less than 100% of the fusion state, did n

13、ot achieve the complete globalization, only the cross-border trade reached 90%, 100% state to make full of Globalization. </p><p>　　“The communications revolution is profoundly democratic and liberating, lev

14、eling the imbalance between large and small, rich and poor.” Frances Cairncross (1997) provided the global vision in her Death of Distance. It seems that much has been made of the death of distance in recent years. It

15、9;s been argued that information technologies and, in particular, global communications are shrinking the world, turning it into a small and relatively homogeneous place. Friedman (2005) also asserts that 10 f</p>

16、<p>　　As far as China is concerned, international cooperation has achieved rapid development, foreign investment,the first industry, second industry and the tertiary industry showed rapid development trend. But the

17、re is still a lack of coordination, lack of cultural thinking, demand and asymmetric three disadvantages between industries. Particularly between the financial industry and other industries in the implementation of the l

18、ack of foreign investment cooperation between strategy.We are on the way</p><p>　　For many companies, becoming global often is a major objective. However companies routinely exaggerate the attractiveness of

19、foreign markets, and that can lead to expensive mistakes. They ignore the costs and risks of doing business in a new market. </p><p>　　Given all these risks and cost, companies which intend to exploit the in

20、ternational strategy must examine the differences among countries that affect their industry. This is done by the CAGE analysis. </p><p>　　3. The analysis of CAGE distances </p><p>　　Companies m

21、ust explicitly and thoroughly account for it when they make decisions about global expansion. 　　3.1 Cultural Distance </p><p>　　There are a lot of differences between the cultures of different countries. Th

22、e present research and Discussion on international cooperation enterprises mainly in the field of economy, the lack of a comprehensive political thinking and research, culture, technology and etc.. Most of the enterprise

23、s in and understanding of the concept, there is a lack of international cooperation on cognition. This lack is not knowledge, and values and skills of the. Do not understand the culture, the host countr</p><p&

24、gt;　　Thus, the companies must understand how culture affects consumer reactions, and understand local traditions, cultural preferences, or local customer behaviors in each of their world markets. Only in this way could t

25、hey transform challenges posed by the new marketing environment into opportunities when focusing on international business. </p><p>　　3.2 Administrative or Political Distance </p><p>　　When a co

26、mpany enters a new market in foreign country, administrative or political distance will pose a barrier for its development. The dimension of administrative or political distance includes government policies relating to t

27、he industry, tax policies, laws and regulations, trade restrictions and tariffs. </p><p>　　Investment demand and the investment ability asymmetry among enterprises in the world. In a sense, the international

28、 investment enterprise is at a delicate moment, i.e. to succeed in international investment and cooperation must invest and ability to cooperate with personnel, cognition, experience, and to cultivate the talents, improv

29、e the cognition and experience, grasp the investment and cooperation ability, practice must carry on the investment and cooperation. But now the international coope</p><p>　　3.3 Geographic Distance </p>

30、;<p>　　When it comes to geographic distance, most people will link to physical distance naturally. Geography is important when products have a low value-to-weight or value-to-bulk ratio, when local operational req

31、uirements are high or when products are fragile or perishable-like fresh foods. Obviously, geographic attributes influence the costs of transportation. </p><p>　　Beyond physical products, intangible goods an

32、d services are affected by geographic distance as well. One recent study indicates that cross-border equity flows between two countries fall off significantly as the geographic distance between them rises. </p>&l

33、t;p>　　Geographic proximity of the home country and the host country, representing a lower cost of managing foreign subsidiaries, should have a positive impact on the inflow of FDI to the host country. In 2008 top 10 c

34、ountries and regions invested in China orderly (according to actual invest value) were Hong Kong, British Virgin Islands, Singapore, Japan, Cayman Islands, Korea, US, Taiwan, Germany and Samoa which most of them were Asi

35、a countries and regions having geographic proximity with China. </p><p>　　3.4 Economic Distance </p><p>　　Economic base plays an important role in creating advantage on a global scale when an or

36、ganization is seeking to develop international markets and international supply chains. </p><p>　　The developed countries in the international trade in developing countries the proportion declined, the propo

37、rtion is rising. One aspect of this phenomenon, there are more developing countries participate in international cooperation, and the contribution to the world economy is on the increase; on the other hand, the developed

38、 countries share decline, does not mean the loss of developed countries dominance. Within developing countries will further widen the gap. Some of the economic level is hi</p><p>　　Facing the differences men

39、tioned above, which make companies’ exploiting abroad difficult and uncertain, even risky, companies which intend to exploit the international markets should take different approaches to a global strategy in a semiglobal

40、ized world. </p><p>　　Because differences between countries are larger than generally acknowledged in a semiglobalized state, global strategy should manifest a broader set of strategic possibilities. While i

41、t is, of course, necessary to take advantage of similarities across borders, it is also important to address differences. </p><p>　　Ghemawat (2003a) described his ideas on global strategy in three concepts t

42、hat can help a company to gain an advantage by exploit those differences. They are adapation, aggregation, and arbitrage, known as the “AAA triangle”. </p><p>　　Adaptation--adjusting to differences: in accor

43、dance with the reality of semiglobalization, global companies can neither be fully localized nor completely standardized. They can, however, adapt to the many differences of countries with the following activities. Coca-

44、Cola, mentioned above, ultimately took it as its global strategy by seesawing back and forth on globalization in recently years. </p><p>　　Aggregation--overcoming differences: differences can also be overcom

45、e by clustering countries with similar characteristics in the CAGE framework mentioned above. Usually this is done by grouping similar countries into geographic regions that are then treated differently. </p><

46、p>　　Arbitrage--exploiting differences: another feasible strategy of creating value in cross-border operations is arbitrage. It views differences between countries as opportunities, and not constraints. Arbitrage has b

47、een the essence of trading throughout history. On one hand, although the concept has been used successfully for a very long time, Ghemawat (2003a) pointed out that it does not get the attention it deserves because of the

48、 very simplicity of this strategy and the ease of copying it. On th</p><p>　　5. Conclusion </p><p>　　Nowadays we seem to live in a completely globalized word which has bound people, countries, a

49、nd markets closer than ever, but distance still matters. Ghemawat equips us with the interesting mindset of semiglobalization and several ways of succeeding globally. Managers must always be conscious of distance--in all