Give a specific business example of how people in different regions are interconnected. For example, choose a company or product that is made in one country and sold in another country.
Points to cover:
1. Examples of product sourcing (very few products are wholly produced in one country. Where do the components come from? What issues impact importing of raw materials and parts, global outsourcing, working with people of different cultures in your example?
2. Examples of international trade impacts on your example: currency, laws, exchange rates 3. Discuss how differing demands for the product or different attribute needs affect the marketing of the product.
Which of the following defines a foreign-based entity that uses a functional currency different from the local currency?
I. A U.S. subsidiary in Britain maintains its accounting records in pounds sterling, with the majority of its transactions denominated in pounds sterling.
II. A U.S. subsidiary in Peru conducts virtually all of its business in Latin America, and uses the U.S. dollar as its major currency.
