Globalization of Business Assignment 2

Globalizationof Business Assignment 2

Globalizationof Business Assignment 2

PetrolOfisi Company is one of the leading firms that imports petroleum andother oil products, refines it, and distributes across the country.The company for years has been responsible for maintaining the marketsupply of petroleum and other oil products in the energy sector. Inits operations, its primary objective is to make the petroleumproducts quite affordable to the final consumers in the energyindustry. One of the areas that the government in the internationalmarket has helped this company is the reduction of the taxes andduties on oil imports (Globalization and business, 2002). Hightaxation has the effects of increasing the operational costs of thecompany, which is entirely detrimental to the profitability. Thismove by the government to waive taxes has helped the firm tostabilize the prices for the final consumers. For this reason, thedemand for petroleum products has risen in Turkey with keen attentionon the low prices and its usefulness in driving the economy (Homann,Koslowski &amp Lütge, 2007).

Toensure control of the firm, particular employment posts are left forthe government to appoint. The appointees such as the board ofdirectors are critical for the government in the making of certainvital decisions about the firm (Ritzer, 2010). These decisionsinclude the increase of the decrease in the productions andconstruction of other oil refineries. Additionally, even as thecompany trade in the international market, the country`s arrangementswith the global market makes it have a real bargaining power on theoil prices. The business agreements between Turkey and other nationsare very vital in ensuring that the firm gets a better deal in thewhile transacting with the other countries. For example, Turkey isknown for agricultural products, vehicles, and textile (Parker,2005). Other countries like Qatar who lack such agriculturalcommodities but has petroleum product would offer a better businessdeal to Turkey. The firm enjoys these arrangements that makeexistence entirely sustainable.


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