Summary Chapter 4
Pitfalls:
- Being misled by the self-reference criterion (every county they have her own framework)
o You have to move in another culture
Who’s the boss (male or female)
Traditions
Way of thinking
Attitude (houding)
You want to sell pork meat in Turkey (its Islam it doesn’t work the people
don’t eat pork meat)
A good international company listen to local experts
- Higher cost an risks than on the home market
o More transport costs
o Insurance costrs
o Packaging costs
o Import duties
o Money transfers
o The issue of bribes often needs to be considered (steekpenningen en corruptie moet
voor lief genomen worden)
o Non-payment
o Language problems
o Currency (valuta)
- Unsuitable internal organisation an lack of knowledge (geen goede interne organsatie met
gebrek aan kennis)
o The internal organization must be successful on the foreign market
o The people need a training about work with international documents
- Inability to survive a long run-up periode
o The time over which investment will be paid back must be taken into consideration
(the money what you invest isn’t so quickly back)
- Flag preference
o People want products that are produced domestically (producten van eigen
land/vlag)
o Or the people want product of their own colonies (for the companies without
connections with one of these countries it’s difficult to enter the market)
- Adaptation of the product
o Sometimes products have to be adapted to the local culture in order to be accepted.
(mac donalds: they don’t sell pork meat at the Islam people because they don’t eat
it)
- Insufficient working capital
Pitfalls:
- Being misled by the self-reference criterion (every county they have her own framework)
o You have to move in another culture
Who’s the boss (male or female)
Traditions
Way of thinking
Attitude (houding)
You want to sell pork meat in Turkey (its Islam it doesn’t work the people
don’t eat pork meat)
A good international company listen to local experts
- Higher cost an risks than on the home market
o More transport costs
o Insurance costrs
o Packaging costs
o Import duties
o Money transfers
o The issue of bribes often needs to be considered (steekpenningen en corruptie moet
voor lief genomen worden)
o Non-payment
o Language problems
o Currency (valuta)
- Unsuitable internal organisation an lack of knowledge (geen goede interne organsatie met
gebrek aan kennis)
o The internal organization must be successful on the foreign market
o The people need a training about work with international documents
- Inability to survive a long run-up periode
o The time over which investment will be paid back must be taken into consideration
(the money what you invest isn’t so quickly back)
- Flag preference
o People want products that are produced domestically (producten van eigen
land/vlag)
o Or the people want product of their own colonies (for the companies without
connections with one of these countries it’s difficult to enter the market)
- Adaptation of the product
o Sometimes products have to be adapted to the local culture in order to be accepted.
(mac donalds: they don’t sell pork meat at the Islam people because they don’t eat
it)
- Insufficient working capital
