Universidad Autónoma De Nuevo León

Fundamentos De La Comercialización
QUIESTIONS

Student: Coronado Vidales Sofia Samara

Gonzales Rincón Gael Sebastian
Martínez Infante Mirka Yamileth
Ramos Rodriguez Jorge Alejandro
Facilitator: MUÑOZ CANTU ALMA MARIA

13/02/2024
1.-Explain why it is observed that free market economies stimulate greater economic
growth, whereas state-directed economies stifle growth.

• Free market economies tend to simulate greater economic growth due to

incentives for innovation, efficiency, efficient resource allocation, flexibility and
investment, while state-run economies can stifle growth due to lack of
incentives, inefficient allocation of resources, bureaucracy and rigidity.

2.-What is the relationship among property rights, corruption and economic

progress? How important are anticorruption efforts to improve a country’s level of
economic development?

• Property rights, corruption and economic progress are closely related. Clear
and legally protected property rights are essential to fostering investment,
innovation and economic growth, while corruption undermines these rights
and distorts efficient market functioning. Anti-corruption efforts are vital to
improving a country's level of economic development, as they strengthen
institutions, foster trust and stability, improve efficiency and transparency, and
attract investment, creating a fairer and more competitive business
environment. Taken together, the protection of property rights and the fight
against corruption are crucial to promoting sustainable and equitable
economic development.

3.- Outline why the culture of a country might influence the costs of doing business
in that country. Illustrate your answer with examples.

• Understanding local norms and customs can help businesses adjust their
strategies and operations to fit in with the local culture, which can help them
to be more competitive and successful in the long run. For example, in
Germany, there is a strong work ethic and a focus on punctuality and
efficiency.

4.- Do you think that business practices in an Islamic country are likely to differ from
business practices in a Christian country? If so, how?
 • Yes, because besides of cultural differences, the people from each religion
may have different ways to do business.

5.- What are the implications for international business of differences in the dominant
religion or ethical system of a country?

• Differences in the dominant religion or ethical system of a country can have

significant implications for international business.
• Cultural Sensitivity: Understanding the dominant religion or ethical system of
a country is crucial for international businesses to operate successfully. This
includes being aware of cultural norms, values, and practices that may
influence business interactions.
• Business Practices: The dominant religion or ethical system can shape
business practices such as negotiation styles, decision-making processes,
and attitudes toward time management. For example, in some cultures,
business relationships may be built on personal trust and connections rather
than formal contracts.
• Marketing and Advertising: International businesses need to tailor their
marketing and advertising strategies to align with the religious or ethical
beliefs of the target market. Messages or imagery that are offensive or
inappropriate in the context of local customs and beliefs can harm the
company's reputation and sales.
• Legal and Regulatory Environment: The dominant religion or ethical system
may influence the legal and regulatory environment in a country, impacting
areas such as product standards, labor laws, and intellectual property rights.
Businesses must navigate these regulations while ensuring compliance and
ethical conduct.
• Social Responsibility: Companies operating internationally must consider the
social responsibility implications of their actions in relation to the dominant
religion or ethical system of the host country. This includes respecting local
customs, supporting community initiatives, and addressing environmental
concerns.
 • Conflict Resolution: Differences in religious or ethical beliefs can sometimes
lead to conflicts or misunderstandings between international businesses and
local stakeholders. Developing effective conflict resolution strategies that
respect cultural differences is essential for maintaining positive relationships
and minimizing disruptions to business operations.

6.- Choose two countries that appear to be culturally diverse. Compare the cultures
of those countries, and then indicate how cultural differences influence (a) the costs
of doing business in each country, (b) the likely future economic development of that
country, and (c) business practices.

• For this question we chose India and Canada. These are the differences:
Costs of Doing Business:
• India: India often offers lower labor costs compared to Canada, making it
attractive for outsourcing and manufacturing operations. However, the
country may present challenges in terms of infrastructure, bureaucratic red
tape, and corruption, which can increase the costs of doing business in certain
sectors. Real estate costs in major cities like Mumbai and Delhi can also be
high.
• Canada: Canada generally has higher labor costs compared to India, but it
offers a stable and well-developed business environment. Infrastructure is
generally reliable, and the country has a transparent legal system and low
levels of corruption. However, real estate costs, particularly in major cities like
Toronto and Vancouver, can be significant.
• Likely Future Economic Development:
• India: India is expected to continue experiencing robust economic growth in
the coming years, driven by factors such as a large and young population,
increasing urbanization, and ongoing economic reforms. The country's
burgeoning middle class presents significant opportunities for consumer
goods and services sectors. However, challenges such as income inequality,
infrastructure deficits, and bureaucratic hurdles may temper the pace of
development.
• Canada: Canada is likely to see steady economic growth, supported by a well-
educated workforce, natural resource wealth, and a stable political
environment. The country's diversified economy, with strong sectors such as
technology, finance, and natural resources, provides resilience against global
economic fluctuations. However, Canada may face challenges related to
aging demographics, climate change, and trade tensions with key partners.
• Business Practices:
• India: Business practices in India can vary significantly depending on factors
such as region, industry, and company size. Relationship-building and
personal connections often play a crucial role in business dealings. Decision-
making processes may be hierarchical, and negotiations can be lengthy and
complex. Companies may also encounter bureaucratic hurdles and regulatory
challenges.
• Canada: Business practices in Canada are generally characterized by
transparency, professionalism, and adherence to legal and ethical standards.
Decision-making processes tend to be more collaborative, with an emphasis
on consensus-building and respect for diverse viewpoints. Contracts and
agreements are typically binding, and disputes are often resolved through
legal channels. Canadian business culture values punctuality, reliability, and
honesty in dealings.