IKEA Prices Essay Example | Topics and Well Written Essays - 500 words

IKEA Prices - Essay Example If not, in which country is the product cheaper than it is in the United States. In which country is it more expensive? The prices of IKEA products are not identical and vary in different countries after converting the price in USD. For comparing the prices of IKEA 365 + Gnistra Bread Knife, three different countries have been chosen namely Australia, Canada and United States. Among these three countries, USA has the cheapest price which is 12.99 USD. After converting the price in USD, the price of 365 + Gnistra Bread knife of Canada has become 17.4532 USD and in Australia the figure is 18.2721 USD. So, Australia’s cost for this particular product is expensive compared to other two countries (IKEA Systems, 2011). Question 2 What might be the reason for the prices to differ even after conversion to U.S. dollars? Individual product costs differ from one country to another. The conventional reasons for difference in price level are the exchange rates and prices of labor. Wage dis tribution at mean level has significant negative effect on product prices. The high currency conversion rate of various countries is related with higher prices. The high income generating countries enjoy large productivity advantage (Lipse & Swedenborg, 2007). Trade cost can determine the cost of product.

International Business Profile of two countries (South Korean, and Essay

International Business Profile of two countries (South Korean, and Japan) - Essay Example Schoenbaum (26-27) puts it that every country has a different business profile with information ranging on the topics of immediate commercial relevance. The above study analyses the international business profile for Japan, South Korea and Singapore. It also shows their FDI profile and how the countries are able to deal with the international demand for business. Japan international business profile Japan is located in the eastern Asia which is at the Island between North Pacific Ocean and the East Sea or the Sea of Japan. The capital city is Tokyo and the total population is about 127 million as at 2004. The Japan ethnic community is made up of 99 percent of Japanese and the 1 percent includes others such as Korean, Chinese, Filipino, Brazilian and other minorities Chew (2008). The religions include that of Shinto and Buddhist which is about 85 percent. The Japan language is said to have originated from the Altaic languages such as Turkish and it is recognised to be close to the Kor ean language. The economy of Japan is ranked as the second after USA. Japan is the largest manufacture of machine tools and the leading automobile manufacture. It is also popular in steelmaking and this manufacturing and service industry has contributed to the growth of Japan’s GDP. ... According to Hoe (2010) Japan’s culture include saving face which is the business culture. They also believe that turning a customer’s request amounts to embarrassment. Japan’s business profile involves harmony which is the guiding philosophy for their business settings. The education system also insists on interdependence and personal dignity. The Japanese understand it is difficult for foreigners to work there as they do not expect foreigners to be conversant with the culture and language. They therefore do business basing on personal relationships. Communication is through greetings or seasonal cards and international traders should ensure they respond as this holds a person to be of high esteem. Japan external trade organisation provides efficient information including various facilities and centres, domestic as well as international services for investments. This includes economic, market reports and surveys (Chew 2008). South Korean international business p rofile South Korea is located in the Eastern Asia which is the border of East Sea and Yellow Sea. The capital city is Seoul and the population is about 48 million as at 2004 census. The ethnicity is made up of homogeneous people. Their religion is comprised of 26 percent of Christians, 27 percent of Buddhist, 46 percent of people with no affiliation and others. The Koreans speak one language and share a distinct physical characteristic which makes them different from other people in Asia such as Chinese and Japanese. South Korea is more influenced by Confucian values that permeate all working life aspects which include management systems or interpersonal relations (Dennis 2003). According to Denoon & Hudson (22-23) the Confucian ethics majorly