Global product, localization, globalization

1) How can financial decisions of an international subsidiary impact the profitability of an entire organization? 2) A) What is a global product? B) Can any product or service be marketed globally? Why or why not? 3) What factors support or impede the localization or globalization of products/services and promotion? 4) How do the 4 Ps of marketing differ in a global business environment?

Research and Development

Explain how you would manage the following organizational functions for your venture in the selected country: 1) Research and development (R & D) Our selection of country and product for the company was to import blue jeans into Ecuador. Please provide input as to what kind of Research and developement might need to be planned for in the event the company was to try entering the Ecuadorian market.

Short analysis of Bribery

I am in charge of trying to secure a contract for the sale of U.S. telecommunications equipment worth about $40 million to the communications and transport ministry of a Latin American country. European firms are also eager for the contract. Quality differences in the products of the various suppliers are not important. A local accountant, who has helped me with government negotiations in the past, suggests to me that the company might receive the contract if it were willing to deposit $2 million in the Swiss bank account of the general in charge of the ministry. Should I? Would I reconsider if I worked for a European firm?

Problem Set

1. Two Lips, Limited, a Dutch bulb exporter, needs to borrow $40,000,000 for three years. They have the following alternatives: (a) Borrow for 3 years at 6.25% fixed rate. (b) Borrow at LIBOR + 1.75. LIBOR is currently 3.5% and will reset every six months over the life of the loan. (c) Borrow for one year at 4.75%. They would refinance the loan at the end of the year. What are the advantages and disadvantages of each alternative? What should they do? Why? 2 Itsa Corporation and Ovah, Limited both seek funding at the lowest possible cost. Itsa would prefer a floating-rate loan while Ovah wants the stability of fixed-rate borrowing. Itsa is more creditworthy. Itsa is AA rated, can borrow ... click for more

Acme's international working capital management

The Acme Company is exploring many strategic options. Whichever global business strategy the Acme Company eventually chooses, the firm inevitably will require the services of a bank to help manage its working capital. Many major multinational banks provide a variety of working capital and multinational cash management services. Here is a list of Acme's assumptions: It will have subsidiaries in South America and Asia that import materials and parts and assemble for export. It wants to centralize cash management. It needs local lending sources for operating cash. It needs short-term investment vehicles for excess cash balances. It needs foreign exchange and forward market servi... click for more