1. Ms. Smith

2. 1. First, businesses need to figure out what products and services to introduce and in which countries. 2. Then, they must decide how much to standardize and/ or adapt their products for world markets.

4.  Globalization is the selling of the same product and using the same promotion methods in all countries.  Helps to develop a consistent worldwide image  Lowers manufacturing costs  Eliminates duplication of R&D, advertising, and product design efforts

5.  Adaptation involves a company’s use of an existing product and/or promotion to which changes are made to better suit the characteristics of a country or region.  Consumers around the world differ in their cultures, attitudes, and buying behaviors.  Markets vary in their economic conditions, competition, legal requirements, and physical environments.`

6.  Yes!  Customization involves creating specially designed products or promotions for certain countries or regions.  Each geographical area where a product is sold becomes a unique market segment.

7.  You must be aware of:  Political factors  Socio-cultural factors  Economic factors  Trade regulations & laws  Technology factors

8.  A government’s stability is an important factor when considering international business operations.  Language and Symbols  Holidays and Religious Observances  Social and Business Etiquette

9.  Infrastructure  Labor Force  Employee Benefits  Taxes  Standard of Living  Foreign Exchange Rate  Businesses must keep abreast of new trade regulations.  Changes include reduced tariffs, an increase in the % of business ownership allowed by foreign investors, etc.  Domestic laws must be followed as well. ▪ Ex.) Toys cannot be advertised in Greece.

10.  Since technology is changing, studying a country’s use of computers, faxes, voice mail, cellular phones, and the Internet is crucial.

12.  A lot of countries have laws that do not allow individual set-up of a business.  Therefore, businesses need to decide between setting up a contract manufacturer or joint venture.

13.  A business enterprise that companies set up together.  In some countries, foreign investors are not allowed to own 100% of a business. Thus, you must find a local business partner, creating a joint venture.  Ex.) Viacom Inc. (MTV) has a minority share in a joint venture with Shanghai Media Group in China.  Involves hiring a foreign manufacturer to make your products, according to your specifications.  The products are then either sold in that country or exported.  Benefits: Lower wages, which allow companies to be more competitive in their pricing.  Pitfalls: Proprietary info. Must be given to companies making products.

14.  Foreign Direct Investment:  Establishment of a business in a foreign country.  May not involve any more than setting up an office with a staff to maintain a presence in that country.  Multinationals & Mini Nationals:  Large or smaller companies that have operations in foreign countries.