International Trade and Global Business Environment Essay

Submitted By mama2briana
Words: 620
Pages: 3

What cultural factors must U.S. sports franchises overcome to increase popularity abroad? Why? In order to increase popularity in other nations, United States sports franchises would need to overcome several cultural factors. It would be imperative to first understand the legal and cultural differences in the global business environment. Some of our most common understandings in terms of conduct in business and social environments are likely be perceived completely differently in another country. Researching the standards for conduct in foreign nations is among the highest priorities. This will include factoring in the environment, political, cultural, language and religious barriers, and also the standard of living. Values, beliefs, expectations and manners may differ with location. Dumping is sometimes used as a tactic to win over foreign customers, by selling large quantities of a product at a price lower than the cost of production or below what the company would charge in its own market, which could result in an increase in brand popularity, but governments often regulate the ability to dump.

How can franchises ensure their products are appropriate for international markets? Important factors to consider will be deciding whether the global, multi-domestic or transnational strategy is the best approach for the business, as well as decide what the target country or countries are, by identifying the best locations for the concept. They could evaluate the markets for their products or services in foreign countries, as well as analyze the competition and domestic policies overseas. Franchises should adapt their brands so as to not give the wrong impression, be unappealing, offensive or negate the standard customs. Native ideas of status, decision-making habits, and attitude toward time, use of space, body language, manners, religions, and ethical standards should be considered. Acclaro, Think Globally, Act Locally: Glocalization and International Franchise Expansion (2012) states that localization by adapting the brand to appeal to the local culture will help to ensure the success of an international expansion, as long as the franchise can maintain its brand identity.

Should governments protect their industries by placing tariffs on imported products? Why? Why not? From what I have learned, it seems as though tariffs can have many positive and negative effects, and it seems as though the negative aspects outweigh the positive. According to Aaron Hall, Tariffs and Quotas: Effects on Imported Goods and Domestic Prices, some negative effects can include forcing consumers to…