In a short essay, explain the cross-cultural risk faced by ...

[APUS57]

In a short essay, explain the cross-cultural risk faced by internationalizing firms. What causes this type of risk? Why might it pose a problem for internationalizing firms?
 
  What will be an ideal response?

Question 2

Which of the following market research tools relies on known information about one product to infer the market potential of another product?
 
  A) proxy indicator
  B) analogy
  C) trade audit
  D) comparative surveys

[Sophiapenny]

Answer to Question 1

Cross-cultural risk is posed by differences in language, lifestyles, mindsets, customs, and religion. Values unique to a culture tend to be long-lasting and transmitted from one generation to the next. These values influence the mindset and work style of employees and the shopping patterns of buyers. Foreign customer characteristics differ significantly from those of buyers in the home market.

Language is a window on people's value systems and living conditions. Miscommunication due to cultural differences gives rise to inappropriate business strategies and ineffective relations with customers.

Answer to Question 2

A

[APUS57]

Excellent

[carlsona147]

Thanks for the timely response, appreciate it