Haier's Global Strategy and Challenges

30% locally produced and sold locally, 30% locally produced but sold internationally, and 30% produced in foreign countries and sold abroad.

Markets in LDCs are easier to handle, while distribution and marketing channels in DCs need compatibility concerning language, culture, and marketing practices.

Haier hired local employees with performance incentives to align with local culture and demands.

<p>Haier USA redesigned a freezer model for US customers, creating a prototype in just 17 hours.</p> Signup and view all the answers

<p>Haier encounters language barriers and relies heavily on technology, which necessitates strong research and development capabilities.</p> Signup and view all the answers

<p>Haier's strategy includes swift redesign processes like delivering prototypes in a remarkably short timeframe.</p> Signup and view all the answers

<p>The R&amp;D centers develop technologies and transfer knowledge, leveraging local resources and environments.</p> Signup and view all the answers

<p>Haier built its brand through successful products like refrigerators before expanding into categories like washing machines.</p> Signup and view all the answers

<p>The total debt amount by 2010 was approximately 15 crores.</p> Signup and view all the answers

<p>Globalization necessitates competitiveness through higher productivity and attractive investment returns, while it exposes developing countries to challenges such as stagnant wages and trade deficits.</p> Signup and view all the answers

<p>BRICS nations serve as significant suppliers of food, energy, and raw materials, while also emerging as manufacturing and service powerhouses.</p> Signup and view all the answers

<p>BRICS represents approximately 40% of the world's population.</p> Signup and view all the answers

<p>Young people in the Middle East face a youth unemployment rate of approximately 32%, with many experiencing significant barriers to economic opportunities.</p> Signup and view all the answers

<p>Brazil had 74%, India 93%, Russia 77%, China 81%, and South Africa 278% market capitalization of GDP.</p> Signup and view all the answers

<p>High unemployment leads to economic exclusion and limits growth opportunities for the youth, impacting overall social stability.</p> Signup and view all the answers

<p>Factors include low productivity growth, persistent trade deficits, and unfavorable investment returns.</p> Signup and view all the answers

<p>Major health crises include Malaria, Tuberculosis, HIV/AIDS, Polio, Cancer, and Diabetes.</p> Signup and view all the answers

<p>Globalization has often intensified wage and income inequalities within and between countries.</p> Signup and view all the answers

<p>Out-of-pocket health expenses have shifted to private funding, exacerbating financial struggles among the poor.</p> Signup and view all the answers

<p>Outcomes include a rise in short-term unemployment rates and aggravated poverty among unskilled labor.</p> Signup and view all the answers

<p>Increased health spending is needed to combat preventable diseases and improve health facilities.</p> Signup and view all the answers

<p>'Galnutrition' refers to malnutrition, severely impacting productivity and health among the workforce.</p> Signup and view all the answers

<p>Financing health care is crucial due to increased health crises resulting from globalization's adverse effects.</p> Signup and view all the answers

<p>Globalization can aggravate poverty incidence among unskilled labor due to market inefficiencies.</p> Signup and view all the answers

A country's shortfall in revenue compared to expenses in a given year.

Interest calculated on the initial principal and also on the accumulated interest from previous periods.

When a country imports more goods and services than it exports.

The rivalry among businesses and nations for customers, resources, and markets.

An association of five major emerging economies: Brazil, Russia, India, China, and South Africa.

The percentage of young people (typically 15-24 years old) who are actively seeking employment but cannot find a job.

The lack of opportunities or access to resources that hinder certain groups from participating fully in the economy.

The rate at which the output of goods and services increases from the input of labour or capital.

Haier's strategy focused on establishing regional design, marketing, and manufacturing centers in the USA, New York, and South Carolina to increase market reputation, image and technology level.

Haier's objective to produce and sell 30% locally, 30% locally to foreign countries, and 30% in foreign countries to foreign countries.

Haier's export strategy identifies that low-developed countries (LDCs) are easier to penetrate compared to developed countries (DCs), but DCs require highly-compatible distribution and marketing channels (e.g., language, culture).

Haier successfully entered new product categories, like refrigerators and washing machines, after establishing their brand recognition, requiring minimal promotional effort.

Haier's USA unit efficiently redesigned freezers for US customers within 17 hours, demonstrating rapid prototyping and achieving high sales success.

Haier employed local employees and invested in local capital to align with the local market. Meanwhile, R&D centers were set up in developed countries, such as the USA and Germany, to facilitate technological transfer.

Haier faced obstacles in globalization like language barriers, inadequate brainstorming sessions, and a need for enhanced R&D capabilities.

Haier's success in international markets depends heavily on its ability to develop expertise in areas like operations, promotion, distribution, adapting to cultural differences, and after-sales service.

Health crises like malaria, tuberculosis, HIV/AIDS, polio, cancer and diabetes are significantly prevalent in developing countries due to insufficient health spending.

Poor health status and health facilities in developing countries affect the workforce, leading to malnutrition, sickness, disability and hazardous work environments

Globalization, despite intended benefits, can exacerbate poverty in developing countries.

Globalization can impact the distribution of income, potentially increasing inequalities within and across countries.

Globalization can lead to widening gaps in income levels between countries.

Globalization can temporarily increase the unemployment rate in developing economies.

Globalization can worsen poverty among unskilled and semi-skilled workers due to issues in labor markets

The ability of wages and employment to adjust rapidly to changing economic conditions.