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- Increased global interaction has been promoted by advanced technology in communication, ideas and culture, which largely encourages and facilitates international trading. Businesses go abroad in seeking better financial incentives, stronger networks, and markets of opportunities. But at the same time, the complexities in terms or risks involved in international operation are more than domestic firms. Respond to the following in a minimum of 175 words: Discuss how to manage cultural risks and other factors related to a foreign operation of a multinational business. Is cultural, business, or political risk more challenging to overcome than one of the others? Why or why not? How should American standards influence multinational businesses?Businesspeople need to understand international culture and corporate practices to successfully transfer their business activities to foreign countries. Compare and contrast US culture and corporate practices with India’s and identify challenges as a result for a US based company to operate its activities in India. Identify at least three risks associated with doing transactions by the US based company operating in India and what can be done to mitigate such risks. Note that operations are in India but majority of the products are sold in US. Include tangible examples for better clarity. Include currency exchange risk among those mentioned above, and explain ways to mitigate this risk. Explain in detail.Blaze Textiles uses the services of Paytym, an e-commerce firm, to handle its payment and delivery processes while exporting its garments. Which of the following forms of internationalization entry tactic has Blaze used when it chooses Paytym as its partner to accomplish its exporting activities? The entry tactic of buy The entry tactic of franchising The entry tactic of euke The entry tactic of ally
- BSF Limited is an Indian multinational company. It ships pre-packaged snacks to Hong Kong, the United Kingdom, and the United States, where sales affiliates resell these snacks. BSF, as the parent company, engages in numerous intrafirm transactions with its affiliates. Since the outbreak of COVID-19, BSF is concerned about the funds that it has in its Hong Kong affiliate. Therefore, BSF has decided that it should re-examine its transfer pricing policy with its Hong Kong affiliate to reposition funds from Hong Kong to India. The corporation tax rate in Hong Kong is 35%, whereas it is 21% in India. At present, BSF charges Hong Kong affiliate a transfer price of $100 for a Box of Snacks. Since transfer pricing is a well-known tax avoidance method or fund repositioning, Hong Kong tax authority has been vigilant in tackling such incidences. Answer the following questions related to the transfer pricing: A. What do you recommend that BSF should do for repositioning funds from Hong Kong to…A U.S. firm that sells high-quality tennis racquets in the U.S., wants to expand internationally by selling them in Argentina and Brazil. Describe the tradeoffs that are involved for each method (such as exporting, direct foreign investment, etc.) that this firm could use to achieve its goal. Which method of international business in your view would be best suited for this firm? Explain why you recommend soBillabong Fashion is based in Melbourne, Australia. Billabong Fashion has a subsidiary in Shanghai that generates RMB85 million in annual sales. Any earnings generated by the subsidiary are reinvested to support its operations. Belle Fashion is the close competitor of Billabong Fashion. Belle Fashion is a local Australian company located in Japan with annual export sale to Malaysia of about MYR 45 million. Based on the information provided, which firm is subject to a higher degree of translation exposure? Justify your answer with thorough explanation on both companies.
- You are an entrepreneur of a local organic product shop in St. Vincent and the Grenadines, specializing in hair products and other cosmetic products. You are considering based on emerging market trends to expand into Brazil, you decide to choose a joint venture method to move into the country. Why choose this method? what are the benefits of a joint venture?Which one of these represents the most basic level of international participation by a business entity? Multiple choice question. Operating a single retail store in a singe foreign country Producing a single product in a foreign-built facility Importing and exporting goods and services Operating multiple facilities in various countries to spread riskReasons that a company might choose to acquire a business in a foreign country include all of the following except: Take advantage of free trade agreements Purchase local customer loyalty Local management understands local ing-hiet equatitions
- Due to their rapid expansion to foreign markets the process is sometimes referred to as the “McDonaldization” of new markets. Which market entry strategy is McDonald’s Corporation using in those countries where local governments do not allow 100% foreign funded enterprises? a.Franchising b.Partnerships with local (domestic) companies c.Mergers & acquisitions d.Local holdings e.Direct exportMatch each term in Column A with its related definition in Column B. Column A 1. ____________ Maquiladora 2. ____________ Import 3. ____________ Joint venture 4. ____________ Export 5. ____________ MNC Column B a. A company that does business in more than one country in such volume that its well-being and growth rest in more than one country. b. A company purchases materials or parts from another company that is located in a foreign country. c. A company sells its product to purchasers located in foreign countries. d. A type of partnership in which investors from one country co-own the enterprise with investors from another country. e. A manufacturing plant located in Mexico that processes imported materials and reexports them to the United States.Which of the following is an example of managing economic exposure by flexible sourcing policy? An American company sells its products in Brazil and Portugal. Reduced sales in Brazil due to the dollar appreciation against the “real” can be compensated by increased sales in Portugal due to the dollar depreciation against the euro. If yen is strong, it is preferable for a Japanese company to open a manufacturing subsidiary in the U.S. to produce and sell its products there. An American IT company hires software developers in Ukraine because of the weak position of grivna against dollar. A Canadian company spends a lot of money for research & development activities to improve its reputation and gain more customers.