Question

Explain the reasons for expatriate failures.

List and explain the four basic global business strategies.

In a few sentences, explain the Fisher International Fisher effect (IFE).

Explain the steps in determining if a company is ready for exporting a product or service

Answer 1

Ans> Reasons for expatriate failures- Expatriate failure defined as the premature return of an expatriate that i, a return home home before the period of assignment is completed. There are many reasons for expotsiate failures. They are - can often be can become more (1) Family stress International assignments are already difficult for the individual and for a family they even harder. Relocating the entire family is difficult. Language barriers and housing needs complicated, (2) Responsibility overloaded overload of responsibility can lead increased stress, physical exhausion impacts anxiety, frustration and anger. to and emotion such as (3) Poor Candidate selection More often than not the assignment fails because the corporation has made poor choice in Candidate, (492 Culture Shock - It occurs where a candidate is not fully prepared for the new culture, & Lack of technical competence (6) manager's inability to adjust.

The IFE is based on Current and futurre hominas interest basic The four & global business Strategies are- (1) Export strategy → An export strategy is used when a compa- my is primarily focused on its domestic operations. (2) stoo standardization strategy. This strategy is used when a treats one market the whole world aso company with little meaningful ragiation. The assumption product can meet is that One the needs of people every where (3) Malti domestic Strategy → This strategy custoon zes produits the specific conditions in each country. or processes to combines a standardi (4) Transnational Strategy This strategy Zation strategy and a company faces significant cost pressure from international competitors multi domestic strategy. It is used chen a but must also offer products that meet local Customer needs needs. International Fisher Effect (IFE) - The international Fisher Effect states that the ☺ differences between the nominal interest rates in two Countries directly proportional to the changes in the exchange rate of their currencies given time. at any rates and it is used to predict spot and future

currency movements. The formula for calculating the IFE as follows: is Es (i. - iz) =(2, - is) (1 + i) where, interest rate. service are research E= percentage change in the exchange rate of the country's currency. i, a country's A's interest rate country's B's The steps in determ ermining if a company is ready for exporting a product or 0 product viability - Company need to do market to find out whether its products or services will, in fact, apped to buyers in other countries, Human resources good the company must have adequate managerial handle the increased workload ③ Reviewing financial resources 4 Enough spare production capacity and resources 6 Enough Logistics resources ② Reviewing company performance. Develop an action plan & Reviewing export potential human and resources to