Professional Documents
Culture Documents
Risk Preference
Rigidity
Product
Legal reasons: to protect customers, environment (packaging laws and
product standards]
Cultural reasons: religious beliefs may offer clear guidelines regarding
product acceptability, other factors (colour, design, etc)
Economic reasons: levels of income, differences in income distribution,
extent & condition of available infrastructure.
Pricing
Government Intervention
Maximum or minimum prices for designated products.
Restrictions against imports dumped at low price
Different prices regionally - differing competition & demand
Price Escalation in Exporting tariffs, greater distance to market
In many cultures prices are simply starting point in bargaining process
Standardised Advertising
Advantages - cost savings; improved quality (effectiveness) at local level; rapid
entry into new country markets.
Challenges - translation [content, meaning, images]; legality [consumer
protection, competitive protection, standards of morality, nationalism]; message
[national differences in perceptions & product demand]
Regional and global brands - language [translation & pronunciation of names;
sensitivity of shapes, symbols, colours]; brand acquisitions [local brands known,
expensive to maintain]; country of origin
Decentralising
- Corporate efficiency
- Standardisation of approach
More than Sourcing to secure inputs - reduce costs, access materials &
technology only available abroad, improve quality, improve logistics process,
strengthen reliability of supply, react to competitors practices
4Cs of GVC
- opportunistic base
Minimum commitment
Instant Internationalists
Strategic reality facing small high-technology firms (SHTFs) in Canada:- Limited window of opportunities. Patent protection, alternative solutions.
- International dimension of product life cycle
- Problems of small home market size
- Relative resource poverty facing SMEs
- Progress Model of SME participation in IB
- Potential of transaction means other than exporting
- Range of Collaborative poss. (function, partner size & origin)
Globalisation of services