Doing Business in other Countries

Important when considering business Changes cause investors to be wary New laws can form

If you are going to do business in other countries Need to know trade laws Tax/tariffs Domestic laws need to be followed by foreign companies Ex) Toys cannot be advertised in Greece

Infrastructure Roads, buildings, telecommunications, etc. Labor Force Consider cost and quality of labor Education and skill levels of workers Ex) India has been supporting technology education and has a pool of skilled workers

Standard of Living Ex) when Honda entered China’s consumer market, it recognized that most Chinese people could not afford cars. The company targeted the motorcycle market instead. Foreign Exchange Rate Exchange rates vary everyday Can have a big affect on company profits

Language and Symbols Ex) In the US the number 13 is considered unlucky. Many hotels do not have a 13 th floor In China and Japan the number 4 is unpopular because it relates to death Holidays and Religious Observances In India the cow is sacred so little beef is sold McDonalds instead sells Chicken, Fish, and Vegi burgers

Social and Business Etiquette A common practice in one country might take on a different meaning elsewhere. Example: Gift giving might be considered part of business in the Far East, but in the US or Canada it could be an illegal bribe.