Presentation 2023

BUSINESS 10
LEVELS OF
INTERNATIONAL
INVOLVEMENT
Ms. Cecille
 Exporters and Importers
Exporter
A firm that distrib utes an d sells
produ cts to one o r more foreign
coun tries.
International and Multinational Firms
International Firm
A firm that condu cts a significant
portio n of its business in foreign
coun tries.
Ex amples: Unilever, P&G
Importer
A firm that buys p rod ucts in
foreign markets and then brings
them for resale in ho me cou ntry.
Multinational Firm
A firm that desig ns, produces,
and markets p ro ducts in many
natio ns.
Ex amples: Nestle’ & Ford
 International Organization Structures
Independent Agent
A foreign individual or
organization th at agrees to
represen t an ex porter ’s in terests.
Branch Offices
A foreign office set up b y an
international or multin ational firm
where a manager sent directly by the
firm has mo re direct co ntrol and
visib le p ublic presence.
Licensing Agreement
An agreement in which firms cho ose
foreign in div idu als or organ izatio ns to
manufactu re or mark et their p rod ucts in
another coun try.
Ex ample: Franchising businesses
Strategic Alliances
An arrangement (joint venture) in which a
company finds a foreign partner to
contribute approximately half of the
resources needed to establish and operate a
new business in the partner ’s country.
Example: Ford and Sollers (Russia)
Disneyland in China
International Organization Structures
Foreign Direct Investment (FDI)
An arrangement in which a firm buys
or establishes tangible assets in
another country.
Examples: Dell, Coca-Cola, FedEx,
Volkswagen
 Understanding the Cultural Environment
A majo r factor in the success/failure of international bu siness activity is
hav ing a deep understanding of the cultural environmen t and ho w it
affects business.

A country’s culture includes all the values, symbols, beliefs, and

language that guide behavior.
Cultural values and beliefs are often unspoken and m ay even be
taken for granted.
Cultural factors do not necessarily cause problem s to m anagers
when cultures of two countries are sim ilar.
Difficulties can arise when there is overlap between t he m anager ’s
home culture and the culture of the country in which the busi ness
is to be conducted.
Understanding the Cultural Environment
Impacts of Cultural Differences in a Business
• Word Interpretation
• Language Barrier due to differences in spoken and written
languages.
• Religion and Religious practices and beliefs.
• Value of Time management
• Color association
 Employee Behavior Across Cultures
• Social Orientation- a person’s beliefs about the relative
importance of the individual versus groups to which that
person belongs
• Individualism- is the cultural belief that the person com es first.
(US, UK, Australia, Canada, New Zealand, the Net herl ands)
(reward system is preferred)
• Collectivism- is the belief that the group comes first. (Mexi co,
Greece, Hong Kong, Taiwan, Peru, Singapore, Colom bia,
Pakistan) (reward system may be counterproductive)
 Employee Behavior Across Cultures
• Power Orientation- the beliefs that people in a culture hold
about the appropriateness of power and authority differences
in hierarchies such as business organizations.
• Power Respect- people tend to accept the power and authority
of their superiors simply on the basis of their positi on in the
hierarchy and to respect their right to hold power. (France,
Spain, Mexico, Japan, Brazil, Indonesia, Singapore)
• Power Tolerance- people tend to question a decision or m andate
from someone at a higher level or refuse to accept it. (US,
Austria, Denmark, Ireland, Norway, Germany, New Zealand)
 Employee Behavior Across Cultures
• Uncertainty Orientation- the feeling individuals have regarding
uncertain and ambiguous situations.
• Uncertainty Acceptance- people are stimulated by change and
thrive on new opportunities. (US, Denmark, Sweden,Canada,
Singapore, Hong Kong, Australia)
• Uncertainty Avoidance- people tend to dislike and avoid
ambiguity and uncertainties of things. (Austria, Japan, Italy,
Columbia, France, Peru, Germany)
 Employee Behavior Across Cultures
• Goal Orientation- the manner in which people are m otivated to
work toward different types of goals.
• Aggressive Goal Behavior- people tend to place a high prem ium
on material possessions, money, and assertiveness. (Japan-
relatively aggresive, Germany, Mexico, Italy, US-m oderately
aggressive)
• Passive Goal Behavior- people tend to place a higher value on
social relationships, quality of life, and concern for others.
(the Netherlands, Norway, Sweden, Denmark, Finland)
 Employee Behavior Across Cultures
• Time Orientation- the extent to which members of a culture
adopt a long-term versus a short-term outlook on work, life,
and other elemnts of society.
• long-term Orientation- people are willing to accept that they
have to work hard for many years to before achieving their
goals. (Japan, Hong Kong, Taiwan, South Korea)
• Sort-term Orientation- people prefer jobs that provi de m ore
immediate rewards. (Pakistan, West Africa)

The US and Germany have intermediate time orientation.