Question

Discuss the global challenge facing U.S. firms. Provide several examples.

Answer 1

The global challenge facing U.S. firms that makes globalization complex are:

--Political and legal differences: A company should know the laws on business in another country thus require huge financial resources, more time and effort. For example, Honda to sell its product globally has produced wide versions of the B18C 1, B16A and K20A engines. It was mainly done to suite varying emission regulations laws followed in different nations.

--Language and translation: Also there is a Language and translation concern. For example: Spanish is a language shared by loads of people worldwide, however the Spanish spoken in Spain differs from the Spanish spoken in Mexico.

--Cultural considerations: Cultures may vary globally and marketing pieces should reflect cultural nuances. For example, in U.S. advertisements showing scantily clad models sell everything from shaving products to soft drinks however the conservative cultures, such advertisements would be considered offensive.

-- Consumer preferences: The tastes of consumers may differ thus marketing strategies need to be formulated to cater to the needs of different consumers. For example customer choosing a salad over a hamburger

--Foreign laws and regulations: The employment and labor requirements also differ by nation. For example, European countries stipulate that a minimum of 14-weeks maternity leave be offered to employees, and on contrary there is no such rule for U.S. employers.

-- Currency rates: The exchange rate fluctuations can impact seriously on the balance of business profit and expenses. For example, if US. firm is paying suppliers and production costs in U.S. dollars, however selling in markets with more unpredictable or weaker currency, U.S. firm could end up with a much smaller margin or even a loss