Question

How can the new environment of global protectionism, (i.e.; increasing tariffs and trade restrictions) affect a firm’s strategic initiatives and how it may position itself to strategically succeed in this new environment. Explain the strategic pressures of the firm’s industry (global, multi-domestic, transnational) and how these pressures would further affect the strategic initiatives in the new global environment.

Answer 1

As explained below.

Step-by-step explanation:

• Protectionism has its roots in the economic policy of limiting the use of imports from other countries an interim f putting multiple tariff barriers to entry put pressure on the country from expanding its resource base and investments oversea.

• These are seen as threats for multidomestic and transnational organizations as the FDI, decrease in job outsourcing, degradation of Natural Resources, Technology Transfer and decline in expertise, etc.

• Thus the global companies are hard hit by the pressure from the domestic markets as the wealth of the companies lies with the customer and suppliers. Changes in government policy and positioning the company can be seen as the charges agents in the global environment.