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Friday, May 17, 2019

Entering foreign markets

A business does not have to think-local, act-local – if it doesn’t mind failure. Before entering foreign markets, of any type, they must be evaluated for cultural norms and influences including governmental policies, and political risks (Shao, 1997). Entering a foreign market with the think-local, act-local approach one must also consider marketing in the strategic plan. In the U.S. there is an emphasis on information. Businesses market adventure, in their products, along with challenges, diversity, and superiority. Japanese culture dictates consensus, harmony, and peaceful collaboration between people, businesses, and industry (Lin, 1993). If the American business person entered the Japanese market using a typical American approach, the Japanese consumer would not be accepting of it and the business would not fare well. The American business would need to transform its advertising to better meet the needs of the Japanese culture.

Resources:

Lin, C. A. (1993). Cultural Differences in Message Strategies: A Comparison between American and Japanese Tv Commercials. Journal of Advertising Research, 33(4), 40-48. Retrieved from http://www.freemanagementresources.com

Shao, L. P. (1997). Capital structure norms among foreign subsidiaries of U.S. multinational enterprises. Global Finance Journal, 8(1), 145. http://www.freemanagementresources.com

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