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Country Risk and Entry Mode Selection

In: Business and Management

Submitted By crystal314
Words 1239
Pages 5
Country Risk and Entry Mode Selection

Political, legal and regulatory risks
Political, legal and regulatory risks, for example, exchange and repatriation of funds risks of our host country, Japan includes the following: Marketers must attempt to comply with the host country’s laws and regulations and keep up with laws and regulations that change frequently. Some examples of Political risks include: War, Social unrest, politically motivated violence, Social conditions, corruption, labor costs and tax discrimination. The political impact on economic transformation includes deregulation, privatization, and the creation of a legal system to protect property rights. The legal risks include the rules and laws that regulate the host country’s behavior; property rights, private and public actions. International property issues include protection of property by law enforcement and product safety and liability. This also includes competitiveness and ethics.
Social and cultural risks There are so many risks when conducting business in an Asian country that you must consider before you decide to conduct business overseas. One of the first things you must figure out is will our product need to be adapted for Asian markets. Some Adjustment is ok, but we would need to figure out if wearing rings is a big thing in the culture. We also should look at which colors and metals are best to use and which are most popular. Another issue that needs to be looked at is how accessible would are advertising be. Although there are far more people in Asia than most other places on the planet we would need to know the best way of advertising. We would also need to start in cities with a lot of young and old people because that is who we would market first. We would also need to look into their tradition to make shore that rings are not sacred or anything like that. We must also...

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