BU111 Lecture Notes - Lecture 42: Walmart, Planned Economy
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BU111 Full Course Notes
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Need to understand and meet these cultural differences and needs to succeed. Adapting to customer needs and customs vary from one country to the next. Parents influence teenagers control; people think western products = bad influence. In taiwan, tapping your fingers on the table is a sign of appreciation for a meal. Firms must be aware of how involved the government is in a given industry. Foreign firm in command economy must understand relationship of government to business. Exchange rates: rate at which the currency of one nation can be exchanged for another. Strong exchange rate means it"s expensive for foreign markets import more but export less. Trade surplus can be difficult imbalance in trade makes it difficult to increase competitiveness. Quota: a limit on how much a country can export to your country (embargo = total ban) Tariff: a tax placed on imports revenue tariff and protectionist tariff. Subsidies: reduces costs, increase competitiveness as government supports certain activities.
