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14 views2 pages

Question1 5 PDF

Uploaded by

miraaaan07
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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1. Describe how your company might have started as a sole proprietorship or a partnership.

Explain the
factors that may have influenced the owners' decision to select this form of business organization.
A sole proprietorship is chosen for the full control by a single owner. This form of business is easy to set
up, requires less capital, and allows the owner to make decisions quickly without consulting others. On
the other hand, a partnership might be selected if the business requires diverse skills, more capital, or
shared responsibilities. Factors influencing this decision include the need for collaboration, the desire to
share financial burdens, and the benefit of brainstorming expertise. For instance, if the business idea
involves complicated services or products that require different areas of expertise, a partnership would be
more suitable to leverage the strengths of multiple individuals.

2. If the company becomes a multinational corporation, what benefits and problems could result?
Becoming a multinational corporation can bring several benefits, such as access to a larger market,
increased brand recognition, and diversification of business risk. It allows the company to tap into new
customer bases, leverage economies of scale, and potentially achieve higher revenues. However, there are
also challenges, including navigating different types of environments, cultural differences, and potential
political instability in various regions. Managing a global workforce, dealing with currency exchange
rates, and ensuring consistent quality and brand messaging across countries can also pose significant
challenges. Additionally, the company may face competition from local businesses and need to adapt its
products or services to meet local preferences and standards.

3. Describe appropriate international business opportunities for the company. What products and services
would be most appropriate for different geographic regions? What economic, cultural, legal, or political
influences must the company consider?
International business opportunities for the company could include expanding into emerging markets,
forming strategic alliances, or exporting products to countries with high demand. Products and services
should be tailored to fit the needs and preferences of different geographic regions. For instance,
technology products might be in high demand in developed countries, while basic consumer goods could
be more appropriate for developing nations. The company must consider economic factors such as
purchasing power and market size, cultural influences like local customs and consumer behavior, legal
requirements including regulations and intellectual property laws, and political stability.

4. Which of the methods described in the final section of this chapter (see Figure 5-5) would be
appropriate for the company to use for international business activities?
Depending on the company’s goals and resources, several methods can be appropriate for international
business activities. Exporting is a common and relatively low-risk method, allowing the company to sell
products in foreign markets without significant investment. Licensing and franchising can also be
effective, enabling the company to expand its brand and operations through local partners. Joint ventures
and strategic alliances offer opportunities to share resources and expertise with local firms, while others
provide full control over operations in foreign markets. The choice of method depends on factors like the
level of control desired, the amount of investment the company is willing to make, and the specific
market conditions.

5. Explain the possible use of two or more of these methods for getting involved in international business.
The company could use a combination of exporting and joint ventures to expand internationally.
Exporting allows the company to enter new markets with minimal investment and risk, testing the waters
before committing to more significant ventures. By partnering with local distributors, the company can
leverage their market knowledge and networks. Leading to, forming joint ventures with local firms can
provide deeper market penetration and access to resources, such as local expertise and established
customer bases. This approach balances risk and control, enabling the company to expand its international
presence effectively. For instance, while exporting products to several countries, the company could
establish joint ventures in key markets to build a stronger local presence and adapt to specific market
needs.

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