The Socio-Cultural Environment of International Business M1

"There is a market willing to satisfy the particular need of the product or service offered by the company."

• Potential market

• Economic capacity or per capita income

It is one of the reasons why companies do international business.

• To learn about another cultures

• To reduce the dependence on a single market

• To visit a lot of countries for tourism

• To get a lot of products of Duty Free Shops

Growth, Competitiveness, Diversification and Secure Essential Supplies, are the reasons why...

• A business or company internationalizes

• The government offers tax incentives to foreign companies

• Entrepreneurs decide to create a business

• Sales teams seek to diversify their international client portfolio

In general terms, and under the conceptualization made by Peng (2018), globalization is:

• The process of standardizing products and services so that they are the same throughout the world.

• The action of invading foreign countries to increase the wealth of the invading country.

• When an employee moves from one country to another, working for the same company.

• The close integration of countries and people from all over the world.

By ___ integration we refer to the process that includes the development of the product or provision of the service, until it reaches the end customer. There are very few companies with a complete vertical integration (Coca - Cola and Bimbo are examples of this).

___ integration refers to companies that merge through some collaborative strategy to supply the final consumer with a finished product.

Clients pay contractors to design and build new facilities and train staff. At the end of the project, the contractors give their clients the “master key” of the facilities that are ready to operate.

• Licensing/franchising

• Turnkey projects

• Joint marketing

• Joint venture

• Research and development contracts

They refer to outsourcing agreements between companies.

Only then, companies can take advantage of the best locations for some innovations at relatively low costs.

• Licensing/franchising

• Turnkey projects

• Joint marketing

• Joint venture

• Research and development contracts

It refers to the efforts made between several companies to jointly market their goods and services.

• Licensing/franchising

• Turnkey projects

• Joint marketing

• Joint venture

• Research and development contracts

It is a new entity created jointly owned by two or more parent companies.

• Licensing/franchising

• Turnkey projects

• Joint marketing

• Joint venture

• Research and development contracts