Doing Business Across Essay Example

be prevalent in the US, it might not be customary in European or Asian cultures; thus, when setting product prices, this aspect must be considered.

Designing a product requires ensuring that it distinguishes itself from competitors in the industry. This is crucial because cultural norms vary greatly when it comes to valuing distinct products, particularly in regions where conformity within a group is emphasized over individuality - unlike in the United States. To accommodate these differences, production methods may need to be adjusted based on what already exists in the target market. Additionally, economic circumstances like inflation rates can also affect pricing choices.

Inflation rates greatly impact the cost of raw materials, which in turn affects product pricing. Higher inflation leads to increased prices for products while lower interest rates and reduced raw material costs result in lowered prices. Consumer purchasing power at both micro and macro levels can also alter production and demand, ultimately impacting product pricing.

The pricing of Homegrown's products is impacted by the taxation policies of a country. In an economy with high taxes, Homegrown would need to increase its prices to offset these deductions. This information is supported by various sources including Beth V. Yarbrough and Robert M Yarbrough's book, "The World Economy: Trade and Finance" (2002), Ernest Gundling's "Working Globesmart: 12 people skills for Doing Business Across Borders" (2003), and Justin J Camp's "Venture Capital Due Diligence: A guide to making smart Investment choices and increasing your portfolio returns" (Wiley, 2002).