Question

Kasapreko Company Limited is a wholly Ghanaian-owned company with branches in Nigeria, South Africa
and Germany. With relevant examples, explain the eclectic paradigm that Kasapreko might have fulfilled,
before venturing international. [15 Marks]

b) Knowing that accounting and reporting laws differ widely around the world thereby posing risks for the
international business, briefly explain for each how physical asset valuation (PAV) and research and
development (R&D) costs are likely to pose risks?

Answer 1

Answer (A)

The eclectic paradigm that kasapreko might have fulfilled before venturing International are as follows-
1. The company is is Ghana based but has its branches in Nigeria South Africa and Germany the company must have should be understood the market and the needs of the customer and adjust its product according to their needs.
2. The company must have undertaken proper internationalization strategy which best suits the demand of the market.
3. The product or services it is selling in Germany and South Africa must abide the local laws of the country.
4. The company must consider the appropriate pricing strategy so that it can beat the competition from the local market in terms of the product and and price compatibility.

Answer (B)

The physical asset valuation and research and Development cost are likely to pose risk in the accompanying manner, The physical asset has different ways esteems in different countries so the organization needs to consider the real price as per the countries rules so as to prepare the details of the accounting information. In such a case that the correct valuation isn't entered into the accounting books the organization might be charged of legitimate activity against them considering the way that they should know about the genuine physical valuation of assets. Every organization needs to enter the real estimation of the physical assets it has so as to carry on the smooth operation , otherwise the organization could land in lawful troubles.

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