International Business

Nokia is one of the global leaders in telecommunication industry. Nokia started its business as a riverside paper mill in South-western Finland. However nokia has evolved over past 150 years and is now connecting over 1.3 billion people around the world in telecommunication industry.

In my opinion the most important thing to write a good essay is to successfully interpret the question. In my final essay my major focus will be on frameworks used by company for their products, which in this case is Nokia in South-east Asia especially their phone market in Pakistan.

When talking about international business, one of the basic frameworks for global firms is CAGE framework. The four mechanisms of the CAGE framework are cultural, administrative, geographic and economic dissimilarities. This framework helps businesses to analyse and measure the differences between different countries and areas. At the same time it also helps managers to realise and understand which factors matter most in their particular industry, in this case telecommunication industry. This framework is of great help to managers as it helps them to make key decisions for success of business enabling businesses to achieve specific objectives by making differences more visible. Since large businesses go global, CAGE network helps businesses to understand the responsibility of being a foreign business in local market. It also enables businesses to make comparisons with other international competitors and also helps business to compare different markets for their product.

The other framework is called the AAA triangle. AAA stands for adaptation, aggregation and arbitrage. The adaption strategies are very helpful for international business as it help companies to adjust to differences internationally. The aggregation strategies help businesses to overcome some company differences by grouping them based on similarities. Aggregation tries to deliver economies of scale by forming regional or sometimes global processes; it involves stereotyping the product or service contribution, grouping together activities such as development, production and marketing at a domestic level or by languages which domestic people speak. Arbitrage strategies pursue to profit from some of these national transformations rather than considering them as constraints. Arbitrage is the exploitation of differences between national or regional markets; often by locating separate parts of the supply chain in different places there are two different options for AAA strategies that can be used by businesses, adaption-aggregation or adaption-arbitrage. Global businesses always try to use all three A's to some extent in their attempt to successfully achieve globalisation, AAA framework is very helpful in developing an immediate record showing how well the company is globalising.

The other very important framework for business that is going global is porter's diamond framework. There are four fundamental elements in porter's model. The model is portrayed as a diamond, where the four forces together establish a firm's global competitiveness in a particular industry. The first of the major four fundamentals is known as demand situations. It enlightens the level of domestic competition that a firm faces. Very demanding customers construct