PRESS-NEWS.org - Press Release Distribution
PRESS RELEASES DISTRIBUTION

Lack of knowledge about new foreign markets hampers international success

A study of 91 German-owned multinational companies and their ability to make money in foreign markets

2015-03-19
(Press-News.org) "Despite all the talk about globalisation and the trend towards the expansion of the international trade space, the world is still far from frictionless or flat. There are still large national differences between countries. And these differences can greatly influence the companies' earning potential when they seek to expand."

So says Associate Professor Ingo Kleindienst from the School of Business and Social Sciences at Aarhus University. He has recently concluded a major study of 91 German-owned multinational companies and their ability to make money in foreign markets. The results have been published in Journal of International Management.

In broad strokes, the results show that companies lose profit due to what Kleindienst describes as "the geographical, cultural or administrative challenges", which the companies encounter in these new international markets. He believes that many companies with an international outlook underestimate the extent of the local difference between countries.

"It is much harder to gain insight into new cultures and unfamiliar regulations than it is overcoming the more concrete challenges related to transportation," explains Ingo Kleindienst, who has collaborated on the project with Thomas Hutzschenreuter and Sandra Lange from the Otto Bisheim School of Management in Germany.

Every line of business has its own challenges

Ingo Kleindienst proceeds to explain that there may be great differences in how the challenges influence the various industries. For instance, cultural challenges may be especially hard to overcome for companies in for instance the media or food industries where language aspects play a large part, or businesses that are especially connected with what the international market is especially known for.

Administrative challenges are difficult in highly regulated and high-tech industries such as aviation and telecommunications. And geographical challenges are especially great for companies, whose products are of low value compared to their weight or size, which in turn increases the transport costs.

"We are not likely to find a 'one size fits all' strategy for this. Generally, we recommend that companies proceed slowly. That they gather and exchange knowledge and don't move on to the more challenging markets, before they have secured employees with extensive international knowledge within the company," says Kleindienst and adds other pieces of good advice:

"It is also possible to spread the risk and still obtain more knowledge about the market for instance by collaborating with a partner, participating in joint ventures or hiring local employees, who possess the knowledge that you need."

INFORMATION:



ELSE PRESS RELEASES FROM THIS DATE:

Excessive vitamin intake in pregnant rats impacts food choices in offspring

2015-03-19
This news release is available in French. A research group at the Department of Nutritional Sciences at the University of Toronto, Faculty of Medicine has been using a rat model to see how maternal intake of above-requirement vitamins (A, D, E, and K) impact offspring's brain development and behaviour. Some of their findings were published today in the journal Applied Physiology, Nutrition, and Metabolism. Much research on vitamins focuses on prevention of deficiencies and the toxicity of very high intakes. However, little has been done on the effect of intakes above ...

Breast implants could become safer thanks to cell-friendly surface

2015-03-19
Scientists at The University of Manchester have created an enhanced surface for silicone breast implants which could reduce complications and make them less likely to be rejected by the body. In the US alone almost 400,000 cosmetic breast augmentations and reconstructions are carried out each year, and the number is growing. Some of these cases are for reconstruction after surgery for breast cancer and can have important psychological benefits. However, around one in five people who has a breast implant suffers from capsular contracture where scar tissue forms and ...

New insight into tackling poor oral health in children around the globe

2015-03-19
A new research project from the University of Copenhagen has established an effective model for the fight against the escalating burden of tooth decay among children in Asia. The model is an important tool in breaking the social inequity in oral health of children. In developing countries, the number of children who suffer pain and discomfort in addition to missing out on school lessons is increasing. This project demonstrates that the school is a vital key to better oral health. The project also shows how it is possible to organize school oral health intervention, including ...

New tobacco atlas details scale, harms of tobacco epidemic

2015-03-19
(March 19, 2015, Abu Dhabi, UAE) -The Tobacco Atlas, Fifth Edition ("The Atlas"), and its companion mobile app and website TobaccoAtlas.org, were unveiled today by the American Cancer Society and World Lung Foundation at the 16th World Conference on Tobacco or Health. The Atlas graphically details the scale of the tobacco epidemic; the harmful influence of tobacco on health, poverty, social justice, and the environment; the progress being made in tobacco control; and the latest products and tactics being used by the industry to protect its profits and delay and derail tobacco ...

Live donor liver transplantation found safe and effective for acute liver failure

2015-03-19
When patients develop acute liver failure, severe complications arise rapidly after the first signs of liver disease, and patients' health can deteriorate rapidly. New research published in the American Journal of Transplantation indicates that emergency evaluations of living liver donors can be conducted safely to allow acute liver failure patients to undergo transplantation before their condition worsens. If untreated, acute liver failure results in coma and death in more than 80 percent of cases. The only effective therapy is liver transplantation, but the deceased ...

Fast-food ban in L.A. fails to improve diets or cut obesity, study finds

2015-03-19
A Los Angeles ordinance designed to curb obesity in low-income areas by restricting the opening of new fast-food restaurants has failed to reduce fast-food consumption or reduce obesity rates in the targeted neighborhoods, according to a new RAND Corporation study. Since the fast-food restrictions were passed in 2008, overweight and obesity rates in South Los Angeles and other neighborhoods targeted by the law have increased faster than in other parts of the city or other parts of the county, according to findings published online by the journal Social Science & Medicine. "The ...

Melatonin can help you get a good night's sleep in a noisy environment

2015-03-19
Using melatonin could provide more and better quality sleep compared to using an eye mask and earplugs in a simulated noisy and illuminated environment, according to research published in open access journal Critical Care. This study was carried out on healthy subjects but could have future implications for intensive care unit (ICU) patients. Melatonin is the hormone secreted by the body to regulate sleep, usually in periods of darkness. Synthetically produced melatonin is used to boost the body's own melatonin levels to treat some sleep disorders, and sometimes as a ...

Dramatic rise expected in adults living with cystic fibrosis

2015-03-19
The number of people living with cystic fibrosis into adulthood is expected to increase dramatically by 2025, prompting calls for the development of adult cystic fibrosis services to meet the demand. People living with cystic fibrosis have previously had low life expectancy, but improvements in treatments and care in the last three decades have led to an increase in survival with almost all children now living to around 40 years. In the first study of its kind, published in the European Respiratory Journal today (19 March 2015), researchers have provided forecasts ...

Standardized packaging with large graphic health warnings encouraged more thoughts about quitting

2015-03-19
Introduction of standardised packaging for tobacco products in Australia prompted more smokers to think about quitting and to attempt to quit, show findings of surveys of adults smokers published in Tobacco Control. In introducing standardised tobacco packaging with large graphic health warnings in December 2012, the Australian government's main aim was to reduce the attractiveness and appeal of tobacco products to young people and so reduce the likelihood of them taking up smoking. In other studies the researchers from Melbourne in Victoria found that standardised ...

Following gestational diabetes, obese women who put on 5 kg are more than 40 times more likely to develop full blown type 2 diabetes

2015-03-19
New research published in Diabetologia (the journal of the European Association for the Study of Diabetes) shows that in women who have developed gestational diabetes mellitus (GDM) during pregnancy, being obese before the pregnancy and putting on more weight after it massively increases the risk of later developing type 2 diabetes (T2D). For women who are obese before pregnancy (BMI 30 or higher) and put on 5 kg or more after giving birth, the risk of developing T2D is 43 times higher than for women who remain lean before pregnancy and gain 5 kg or less. The research, ...

LAST 30 PRESS RELEASES:

Signs identified that precede sudden arrhythmic death syndrome in young people

Discovery of bacteria's defence against viruses becomes a piece of the puzzle against resistance

Pre-eclampsia is associated with earlier onset and higher incidence of cardiovascular risk factors

Warwick astronomers discover doomed pair of spiralling stars on our cosmic doorstep

Soil conditions significantly increase rainfall in world’s megastorm hotspots

NK cells complexed with bispecific antibody yield high response rates in patients with lymphoma

Planetary health diet and mediterranean diet associated with similar survival and sustainability benefits

Singapore launches national standard to validate antimicrobial disinfectant products

Molecular stool test could improve detection of tuberculosis in adults with HIV

Suspected fibrocartilaginous embolus in Asian small-clawed otter (Aonyx cinereus)

Enhancing heat transfer using the turbulent flow of viscoelastic fluids

Exercise as an anti-ageing intervention to avoid detrimental impact of mental fatigue

UMass Amherst Nursing Professor Emerita honored as ‘Living Legend’

New guidelines aim to improve cystic fibrosis screening

Picky eaters by day, buffet by night: Butterfly, moth diets sync to plant aromas

Pennington Biomedical’s Dr. Leanne Redman honored with the E. V. McCollum Award from the American Society for Nutrition

CCNY physicists uncover electronic interactions mediated via spin waves

Researchers’ 3D-printing formula may transform future of foam

Nurture more important than nature for robotic hand

Drug-delivering aptamers target leukemia stem cells for one-two knockout punch

New study finds that over 95% of sponsored influencer posts on Twitter were not disclosed

New sea grant report helps great lakes fish farmers navigate aquaculture regulations

Strain “trick” improves perovskite solar cells’ efficiency

How GPS helps older drivers stay on the roads

Estrogen and progesterone stimulate the body to make opioids

Dancing with the cells – how acoustically levitating a diamond led to a breakthrough in biotech automation

Machine learning helps construct an evolutionary timeline of bacteria

Cellular regulator of mRNA vaccine revealed... offering new therapeutic options

Animal behavioral diversity at risk in the face of declining biodiversity

Finding their way: GPS ignites independence in older adult drivers

[Press-News.org] Lack of knowledge about new foreign markets hampers international success
A study of 91 German-owned multinational companies and their ability to make money in foreign markets