International Business Essay Example | Topics and Well Written Essays - 3000 words - 10

International Business - Essay Example Primary activities are those activities which involve the organisation of supplies inputs or inbound logistics, operations of manufacturing, delivery as well as the distribution of commodities (Distribution is also referred to as outbound logistics), marketing of products and lastly, sales as well as after –sales services. Each of these mentioned primary activities has the aid of support activities and this is the point at which support activities come in. Support activities may involve; a company’s planning capacity, development of technology, human resource management (HRM), and procurement activities. (Weiss, 2002 p 144) The analysis of global commodity chain involves a process of study on value creation in the process of production and distribution. Business strategies are also very close to the function of value chain, this is since it says that in the world economy goods’ production is in a chain process commencing from one country up to the final country. Each process in the commodity chain has value being added to the product and the magnitude of value relies on the competitiveness in the market. More and more the largest value is enhanced in the product branding and differentiation processes as evidenced in large business organisations like Nike. Analsysing commodity chain aids in the understanding of power relations displayed in the global system. It’s made possible by the world financial order as administered by the IFIs – International Financial Institutions. Commodity chain study unravels understanding of the function of branded transnational capitalism. It also promises to guide in the exploration of the fluctuating distribution of realisations of value between the social groups at the steps of production and the differing fractions of elites of the transnational business. (Murphy 2008 pp 9-10) Member states of OECD’s government as well as the political approach are the ones