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Global Business Strategy

Q U E S T I O N 1 :

Which trading blocs has Mittal selected for his group?

The Mittal steel is one of the biggest steel producers in Eastern Europe. Without any doubt we can say that Mittal is running their operation very successfully in many countries across the world. Mittal formed LNM group and established his business in about more than 60 countries worldwide. In 1976 he made his first independent move by leasing a money losing state owned steel firm in Trinidad. From that time he didn’t have to look back. Now LNM group has factories in Kazakhstan, Romania, Czech Republic, Indonesia, Algeria, Trinidad and Tobago, United States, Canada and Mexico. Now they have also entered in more market such as France, Germany, United Kingdom, South Africa and China as well.

Mittal Steel is currently operating in many countries and those that are going to be operated soon belongs to different trading blocs and the trading blocs that Mittal Steel is in are the followings:

➢ European Union (EU): Mittal Steel has operations in France, Germany and Britain and these countries are under the trading bloc of EU in the Western Europe region. Those steel companies’ are- Ispat Germany, Ispat Unimetal (France), Ispat International (Britain) and Czech Republic (Ispat Nova Hut).

➢ North American Free Trade Agreement (NAFTA): Mittal Steel operates in Canada, Mexico and United States of America and these three countries are categorized as NAFTA countries. Those Companies are- Ispat Sidbec (Canada), Ispat Inland (US), Ispat Mexicana.

➢ Association of South East Asian Nations (ASEAN): Mittal Steel also operates in Indonesia (PT Ispat Indo) which is categorized under ASEAN trading bloc.

➢ Caribbean Community (CARICOM): Mittal Steel has factories located in Trinidad and Tobago (Caribbean Ispat) which falls under the trading bloc of CARICOM.

➢ CIS (The Commonwealth of Independent states): He also acquired a plant in Kazakhstan (Ispat Karmet), which is...