BUS 478 Lecture Notes - Lecture 20: Pizza Hut, Taco Bell, Kfc

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 478
• Professor: Daniela Blettner

Document Summary

Week 7: distance still matters: the hard reality of global expansion. Companies must account for distance when making decisions about global expansion. Determines how people interact w/each other and w/companies & institutions. Cultural attributes create distance by influencing the choices that consumers make btwn substitute products b/c of preferences for specific features. Historical/political associations shared by countries greatly affect trade. Distance is also created through unilateral measures policies of indv governments pose the most common barriers to cross-border competition. Tariffs, trade quotas, restrictions on foreign direct investment, preferences for domestic competitors in the form of subsidies & favoritism in regulation/procurement most likely to be implemented if domestic industry is: A producer of an entitlement good or service. Farther = harder to conduct business in that country. Also consider physical size of country, average age, access to waterways, topography. Wealth or income of consumers is the most important economic attribute. Correlation tbwn per capita gdp & trade flows.