Assignment:
You are employed by a U.S.-based business that recently developed and brought to market a handheld Internet device that can outperform existing devices but costs 50% less. You have been assigned the task to recommend a strategy for expansion into South America. Available options are (a) export from the United States, (b) license a South America firm to produce, market, and support the device, or (c) establish an independent subsidiary in South America. There are distinct advantages and disadvantages for each option. Which one would you recommend, and why?
Some expatriates may encounter problems that limit their effectiveness when they relocate to their home offices. Describe three problems that an expatriate would encounter and suggestions on how to reduce their impact on the returning employee.
You work for a domestic manufacturer of personal computers. Although the computers are designed domestically, the contract manufacturing takes place in China. Marketing strategy is assigned to three distinct regions: Atlanta is the U.S. base, Berlin in the European base, and Malaysia is the Asian base. Each region develops local marketing strategies and tactics. Based on sales history, the following countries are listed in descending total sales: North America, Germany, Britain, China, and Australia. The following problems exist: 1) product availability, 2) poor product quality, and 3) costs are exceeding budgets. Describe a reason for each problem and one recommendation for each problem.
Problem 1. An international business, like a domestic business, would like to minimize its tax liability. Describe three ethical strategies an international business can implement to minimize its tax liability.
Problem 2. Why do different countries have different accounting systems?
Problem 3. What are four major differences between a domestic business and an international business?
Problem 4. Describe the two basic types of markets and explain which market encourages economic growth and which one limits economic growth.
Problem 5. Describe the differences between an international strategy and a transnational strategy. Why would a business choose one over the other? What are the three challenges in changing from one strategy to another?