Assignment Week 04

1. "First they secured their domestic battlefields. Now they're moving into foreign territory ready to face stiff opposition from local forces”. The battle this quote refers to is what awaits U.S. Internet enterprises as they go about establishing new markets internationally. Let’s look at http://www.expedia.com/ and explore what they are doing as an online business to successfully conduct international business.

Start by logging into the web site provided. What countries are listed for consumer shopping convenience? What other information is provided that clearly indicates this is an international shopping page? As a manager trying to promote this business as an international business what other information would you recommend for this page?

2. What impact has NAFTA had on U.S. businesses? What impact has NAFTA had on the comparative advantage idea for member countries?

3. Revlon, www.revlon.com, was founded in 1932 and within six years became a multimillion-dollar organization. During the 1960s, it established itself as an international presence. Today, Revlon is a world leader in cosmetics, skin care, fragrance, and personal care. It also is a leader in mass-market cosmetic brands. It has international offices located in Australia, Japan, Hong Kong/Taiwan, and China.

Visit the site via the link above. Once at the web site, select “Corporate” under “Information” and then “Corporate Affairs”. Review the site’s company history, what is Revlon able to offer that established it internationally and allows it to continue operating successfully internationally?

4. PepsiCo is recognized around the world but not necessarily by name. PepsiCo is responsible for the manufacture and distribution of the Frito-Lay, Gatorade, Pepsi-Cola, Tropicana, and Quaker brands of food and beverages. Their products are manufactured with diverse cultures in mind. Go to the following web site http://www.pepsico.com/ and review their international operations. Click on Citizenship and then Diversity.

In reviewing the above web site explain why PepsiCo places such a high emphasis on diversity in their products?

5. a. Why has McDonald’s been successful while others have failed in the international market?

b. How do cultural differences affect managers of international businesses?

6. Since the September 11, 2001 attack on the World Trade Center and the Pentagon, an area of interest has been on the business practice laws of claiming "Made in the USA". Two of the major concerns with the idea of “Made in USA” are with the expectation that the claims are truthful and accurate. The Federal Trade Commission is assigned the task of outlining the requirements for “Made in USA” claims. Click on the following web site http://www.ftc.gov/ftc/business.htm to aid in addressing the “Made in USA” question.

For a company entering the U.S. market from overseas making the statement about their products “Made in USA” what business acts governing the labeling of country of origin?