Global vs. International Business
We are trying to expand our bicycle business to three new countries. Right now we are domestic in the United States, but we hope that will change in the vast future. We are first faced with the question of whether we are global or international. Obviously the goal for the bicycle company is to be global since we would expand our company in having a physical site overseas. In order to have a physical presence in other countries we may have to buy out a local, favored brand name. So we have to keep that in mind for the future of our business.
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In order to sell a more expensive product, such as a bicycle, we need to make sure we aren't ...view middle of the document...
For instance, there could be political risk in a country like Japan because it is brand nationalistic.
According to The World Factbook (2015), Japan is under civil law with Japanese traditions, Costa Rica is civil law based on Spanish civil code, and Pakistan is common law with Islamic influence. This is important to identify due to the fact that if we do business in these countries we will have to abide by their rules and law systems.
Japan lands in more of a free market range with the unordinary government guidelines. Costa Rica is a mixed economic system that includes a little bit of free market policies as well as command policies. Lastly, Pakistan has mixed economy as well. When selling in other countries it is important to know the type of economic system you are dealing with. Most countries have mixed economies but with different levels of command in them. It would be easier to sell in Japan where more of a free market exists because that type of economy welcomes new comers. In a mixed economy with more command control then it may be harder to enter the market depending on the economic well being of a nation.
Japan’s religion is a mixture of Buddhism and Shintoism, neither aspect of their religion play a big role when doing business (Victor). Costa Rica is predominately Catholic, thus it will not affect business drastically. Pakistan on the other hand is over ninety percent Muslim, and for most Americans that fact can change business etiquette. Because Japan and Costa Rica’s religion do not affect business dealings for the most part, they would be an easier option to enter a new line of bicycles.
Most of the people one would encounter in a formal business meeting in Japan would speak some English although it is not their primary language. Unless you know Japanese, keep your sentences short and to the point because the Japanese as a whole will be too polite to let you know that they do not understand what you are saying (Victor). In Costa Rica, one should introduce themselves in English and in Spanish. If you are giving the natives documents or business cards, it is polite to have them printed in both languages with the Spanish version on top. In Pakistan, Urdu is the official language, but English is the lingua franca (Pakistan). In this day and age language is as wide spread as anything and because English is accepted in all of these countries for business, it should not hinder the entrance of a bicycle company.
In Japan, the word “business” actually means “to make efforts to develop societies harmoniously and raise the well-being of the people” (Taka) so the business ethics of Japan are understood, meaning as long as it helps society it is okay. Costa Rica’s business ethics are simple, they will comply with the laws, and protect the environment (Costa).Pakistani business ethics are much different than that of Japan and Costa Rica. For example, if negotiations...