International Trade and Starbucks Essay

The original idea for Starbucks came from Howard Schultz after he took a stumble to Italy. He was inspired by the coffee house experience and precious to bring it to America. The lesson that squirt be drawn from this situation is that business formats in other countries can be translated triumphfully in other move of the world. New opportunities can be taken advantage of internationally wherever there is a need for it. 2) What drove Starbucks to start expanding internationally? How is the community creating rank for its shareholders by pursuing an international expansion strategy?The success that Starbucks was having in America drove the fellowship to expand to other countries. In 1995 Starbucks had oer 700 sugarable stores across the U. S. and began exploring the international grocery store in Japan. By entering the international mart Starbucks is becoming a part of the orbiculate market. This brings value to shareholders because the world is moving towards globalization and it is necessary for companies to change their market strategy to meet the conditions of the global market. An international expansion strategy allows Starbucks to manage in the market more effectively and create more value for shareholders.3) Why do you think Starbucks decided to enter the Japanese market via a joint enter with a Japanese company? What lesson can you draw from this? I believe Starbucks did a Japanese joint venture to help reduce the risk. Since the Japanese company Sazaby Inc. also had a 50% stake in the company it benefits Starbucks to have a partner who knows that Japanese market and who also has economical interest in seeing the company succeed. This shows that entering into joint ventures in international territories can help serve harvest-home and lessen the financial burden if international ventures happen to fail.4) Is Starbucks a rip for globalization? Explain your answer. Yes, I believe Starbucks is a force for globalization. Starbucks is a multina tional enterprise that has operations in countries all over the world like Canada, Japan, Britain, Thailand, and New Zealand. Starbucks empowers workers and farmers around the world and contributes to the economic growth of the global economy. 5) When it comes to purchase coffee beans, Starbucks adheres to a fair plow program. What do you think is the difference between fair trade and free trade?How might a fair trade form _or_ system of government benefit Starbucks? reliable trade is a system that ensures that workers and exporters get a fair profit from the goods that the sell. Free trade is strictly based on the markets supply and consider for goods and services without regulation or moral implications. The fair trade policy that Starbucks adheres too will make consumers feel better about purchasing goods from their store. Many people are conscious about unfair fee and treatment of workers around the world and are more attracted to companies that do not follow the cheap lab our trend.