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a) Describe ONE social or cultural influence that managers should consider when conducting business with overseas clients - HSC - SSCE Business Studies - Question 23 - 2009 - Paper 1
Question 23
a) Describe ONE social or cultural influence that managers should consider when conducting business with overseas clients. b) Analyse the impact of TWO financial in... show full transcript
Worked Solution & Example Answer:a) Describe ONE social or cultural influence that managers should consider when conducting business with overseas clients - HSC - SSCE Business Studies - Question 23 - 2009 - Paper 1
Step 1
Describe ONE social or cultural influence that managers should consider when conducting business with overseas clients.
Answer
One significant social influence that managers should consider is cultural norms and values. Different cultures have distinct ways of communication, negotiation styles, and business etiquette. For example, in some cultures, direct communication is valued, while in others, indirect communication is preferred. Understanding and respecting these differences can help managers build stronger relationships with overseas clients and avoid misunderstandings.
Step 2
Analyse the impact of TWO financial influences on a business wishing to export.
Answer
The first financial influence is exchange rates. Fluctuating exchange rates can significantly affect the pricing of exported goods. A strong domestic currency can make exports more expensive for foreign buyers, potentially reducing sales. Conversely, a weaker currency can make products more competitive internationally, boosting sales and market share.
The second financial influence is access to financing. A business's ability to secure funds for production and export operations can impact its global competitiveness. Limited access to financing can hinder a business's ability to scale operations for export or to absorb costs associated with entering foreign markets, thereby restricting growth opportunities.