Textbook: International Business, Environment & Operations (Rev: 13th ed) by Daniels, Radebaugh,
(1). Briefly discuss the reasons why the various elements of culture might increase the cost of doing business in a country. Review the website www.executiveplanet.com. Choose two countries that are culturally diverse. Compare and contrast the cultures of the two countries and discuss the ways in which the differences in culture, business practices, and ethics will affect the cost of doing business in each.
(2). What are the principal regulations or practices of nontariff quantity controls instituted by governments that affect imports and exports? Why are these practices or regulations implemented? Do you feel regulations and controls should be increased/decreased? Support your perspective with rationale, evidence, and/or examples. Remember to cite any sources used, including the textbook..
(3). Identify and discuss the various steps management must take to establish a successful export strategy.
When doing business in different cultures, organizations must take into consideration the differences between their country and the country they are trying to enter if they want to find success. Some of these key differences are the differences in economic systems, currency rates, cultural demands for products, philosophy, supply and demand for specific products, and many other factors that could affect the costs associated with penetrating the new markets (Radebaugh & Sullivan, 2011). The barriers to entry into any new market are complicated but a fundamental understanding of one another's cultures multiplies the chances of success.
As an example, if your organization is in the United States and it specializes in bikini wear, it would be a foolish business decision to assume that Saudi Arabia is a great potential market based only on the knowledge that there are a lot of women, it is hot, there are beaches, and there's a lot of money in the country. Upon studying the culture and traditions of Saudi Arabia, one would have much more data to determine their decision from. It may appear that it would be more expensive if not unrealistic to target a traditional Muslim country such as Saudi Arabia as compared to the costs of taking your product to a different country such as Brazil. Let's compare the two cultures.
In Saudi Arabia's culture, women are forbidden to expose their bodies in most public settings. Also, Saudi culture frowns on manual labor and they outsource most of their labor and production to other countries such as Egypt or the Philippines. Additionally, Saudi Arabia has a monarchy society that is predominantly rich or poor, very little middle class. The customs and culture of Saudi Arabia are dominated by men, so if your organization is driven by women, it may be difficult to penetrate the Saudi marketplace (executiveplanet, 2011).
In Brazil, the culture is one of expression, freedom, peacefulness, and acceptance. There are multiple economic classes in the society which can be appealing to new markets and products (very similar to the United States in many aspects, from rich to poor) Also, the cost of raw materials, labor, and other factors would seem to be much more favorable in Brazil than Saudi Arabia. Brazil is also much more accepting of foreign products and new ideas, unlike ...
Key differences in cultures' businesses like currency rates, cultural demands for products, philosophy, supply and demand for specific products, and many other factors that could affect the costs associated with penetrating the new markets are investigated in 1479 words with 6 references.