Licensing gives a more diverse way of looking at the different markets where the Disney label may be placed. Take for instance the Disney in Hong Kong would be much different from the Disney in Florida or Anaheim. Culturally the differences would be tremendous; everything from food and clothing, to gifts and merchandise would be significantly different. If Disney were to franchise out internationally the parks would be almost the same everywhere which may not work in some markets because of the differences that are prevalent.
Franchising is not something that Disney wants because they still want to be involved in areas like distribution and promotion, where with franchising their role in those areas would be limited. Licensing is the best option for Disney for international expansion because it allows them more options to be successful in whatever market they chose. Our nation’s unfavorable trade balance with China impacts the U. S economy a great deal. Another way of putting it, is that we are running at a trade deficit because we are importing more than we are exporting.
The reason that this is occurring is in large part to do with offshore outsourcing that has become a phenomenon. Outsourcing is causing jobs to be lost permanently and wages falling because of the low-cost competition of the offshore operations. There have also been cases of product quality that have hurt company’s reputations. Communication failure is another downfall of outsourcing as sometimes suppliers, customers, and company members become unclear about what is going on. This hurts our economy because it takes away from the overall strength of the market.
In the future experts suggest that this rate of outsourcing is going to become a larger problem making many people wonder how fragile the economy will become. Having production levels and exporting levels decreasing at a staggering rate is a cause for great concern for the economy as a whole. Disney would be taking advantage of this growing opportunity because building a park in China would most likely mean paying the designers, architects, and workers less than they might make here in the U.
S. If Disney were to break the barrier and engage in trade with China maybe it would lead to greater trade opportunities with them in the future. Having a good trade relationship with China would help decrease the trade deficit we are currently running at. The U. S. economy is the largest in the world although we only compromise 5% of the population because of the steady growth rate of GDP, low unemployment rates, and a high amount of foreign investments. The U.
S is the largest investor in the world which is why there is such a large demand in the economy that never seems to slow. We are also home to the largest stock exchange, the New York Stock Exchange that consists of the world’s largest gold reserves and the world’s largest gold depository that is the New York Federal Reserve Bank. Having these major economic contributors in the United States is a huge factor that elevates our economy over the rest of the world. There are also many more major companies that are that are located in the U.
S that provide stability in the economy because of their presence in the global market. Disney is one of those companies that help provide stability in the economy as well as producing valuable trade connections internationally. It is these major companies, foreign investments, and trade to other nations that makes the U. S economy the largest in the world and they must continue for the economy to strive. Reference Books Nickels, W. G, McHugh, J. M, & McHugh, S. M. (2008). Understanding Business (8th ed. ). McGraw-Hill