Event Log for Assessment 2

Trade wars代写 The specific current news event that has an impact on my chosen MNC:1.Summarise the news below in a few lines:China and the US trade wars.

Trade wars代写
Trade wars代写

1.What is its name?

Alibaba Group

2.What are/is its main service or products?

Online wholesale and retail marketing

3.Where is its base country?

China

4.Name some of its overseas markets.

The United States, India, Africa, Europe, North and South America, United Arab Emirates, Australia.

(A) The specific current news event that has an impact on my chosen MNC  Trade wars代写

1.Summarise the news below in a few lines

China and the US trade wars. There have been delays in negotiating on the manner to end the trade wars between the two countries which has taken a toll on multinational companies. Since 2018, President Trump has been imposing tariffs and other trade barriers on China. The claim for the action was to reduce the unfair trade practices with China. In retaliation, China has banned the use of American computer devices and hence deepening trade rift between the two countries. The counteractions between the two countries have delayed negotiations.

2.How does this news impact on my chosen MNC? List two possible impacts.  Trade wars代写

Trade wars代写
Trade wars代写
a.  Impact 1

The United States the second-largest market for Alibaba products and services. The trade war has resulted to slow growth and reduced profits as some products and services are barred or limited from entering the U.S market. The ban on some products such as Huawei and increase in tariff rates of most Chinese products means the company’s competitiveness in the U.S market is likely to decline.

b. Impact 2  Trade wars代写

The delay in the negotiations has caused uncertainty among investors in Alibaba. Although the share prices have been withstanding the market turbulences, there is a likelihood of dwindling if the speculations persist. As revenues reduce, the earning per share will also decline to make the company shares unattractive to investors. As a result, Alibaba may lose some critical investment initiatives, increase operational costs and

(B) Proposed measures to mitigate these impacts. List two measures with an explanation.  Trade wars代写

1.Measure 1

Alibaba should shift its focus from the U.S target on expanding other growing markets such as Africa, India, and South America. The move will reduce the company’s dependence on the U.S on much of its revenues. As of now, the United States makes up to more than 30 percent of the total company revenues. The company should invest in its internationalization strategies through target marketing.

2.Measure 2  Trade wars代写

Additionally, the company can offer products that are not affected by bans and barriers in the U.S market. Some of the products and services include cloud computing and other machine learning services. The US is a big consumer for internet services and computing technologies and hence creating a competitive edge in this market will be sustainable to Alibaba.

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