Investigation About Doing Surfboard Business in International Markets

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For South-Africa, same as America, English can be used as business language in South-Africa. Secondly, main religion in South-Africa is Christianity, taking up nearly 70% among all religions, and there are many branches for Christianity including Zion Christian, Catholic, etc. (see pie-chart below). Thirdly, business ethics requirements are high, thus, businesses doing international trade in South-Africa must be socially responsible. Next, some social-norms include: Gift giving is not business norm, business meetings can be held over lunch or dinner,do not rush deals as South Africans are very casual in business dealings.Other considerations such as attitudes towards foreign products, negotiation style, laws, and resolution of disputesare similar to those in America, as they both are countries where surfing is popular and economy is good.However, South-Africa has not signed free-trade agreement with Australia, doing business in South-Africa may not as free as in America. Thus, the surfboard business needs further and more careful consideration.

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For China, official business languages are Chinese and English. Australian business has less language barriers in China because most Chinese understand English, but if the surfing business has Chinese employees, it will be easier for international communication. Secondly, most Chinese do not have religions or believe in traditional Chinese religions such asTaoism and Confucianism.Few peopleadhere to Buddhism, Christianity and Muslim (see Figure1, 2.). Thirdly, as a developing country, China has not had as strict environmentally-friendly regulations and products quality rules as America, therefore, Australian business should have more self-discipline to act ethically, for example, try to reduce pollution as possible as the business can during manufacturing or packaging process, or the Australian business in China should regulate itself by using the same standards as those standards in America, where rules are stricter. Besides, business disputes can be resolved through mediation and court action. Moreover, Chinese normally think import goods are better; therefore it is easier for them to accept foreign goods. However, Chinese now spend most on food and little on leisure, sports or healthcare (see Figure 3, 4), so it will cost long time to educate Chinese consumers to spend on surfboard. For social-norms, some are: do not point when speaking; being on time for business meeting;present and receive cards with both hands.Finally, the law related to intellectual-property-protection is weak. Therefore, entering Chinese market involves certain risks, which may negatively influence acceptance of our product.

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- Investigation of intellectual property protection.

Intellectual-property-protection is important because it gives businesses competitive advantage and exclusive right to use the intellectual property. However, the intellectual-property-protection law in America is far better than that in China, which brings more difficulties if the business wants to protect intellectual-property in China.

Businesses should protect its intellectual property, especially trademark. As Australia is a signatory to the Madrid Protocol which relates to the international registration of trademarks, when an Australian registers a trademark in Australian, it is automatically valid in other signatories of Madrid Protocol. But if host nations of the Australian business are not signatories of Madrid Protocol, the business must make individual trademark applications in those nations.

To protect the surfboard from being copied or pirated, the business should keep the technology know-how of manufacturing the surfboard secret, and guarantee only few senior managers know the know-how; therefore, it is harder for others to copy or pirate.Besides, the business can register a patent for the surfboard. The Australian business should first file an Australian patent application. 12 months after the application is approved, the business can file a Patent Cooperation Treaty application for international patent. If World Intellectual Property Protection approves the patent, the patent is valid in member countries of the treaty, but for non-member countries, Australian business must make individual patent protection application.

Based on all considerations in (b) (c) (d), America is the most attractive market.

- Technologies assisting international business expansion with new fin system.

When ourbusiness runs in a foreign country, it can cooperate with local businesses that have more advanced technology or different technology in surfboard area, thus, we can learn new technology or can use different technology to improve and modify its own surfboard, and there will be product diversity due to different technology used.

Besides, some communication technologies are useful. For example, collaborative software and groupware software such as video meeting, shared calendars, MSN allow people in different locations to work together. Employees in different nations can discuss together and issues or problems about the surfboard can be resolved quicker, and decision making is quicker. Thus, although the business runs globally, there is instant communication and information sharing between foreign customers and the business or between sub-companies in different countries, which increases working efficiency.

Online and digital technologies are also helpful. The business should have automated online shop to help staff copy with customer demands, online shop also helps business know information about customer order. Or the business can use free or low cost online design and word processing as promotion to attract customers to buy the surfboard.

- Sources of finance.

There are numerous sources of finance listing below:

Loan from family or friends means borrowing money from family members or friends. The advantage is the length of loan and interest to be paid on loan can be negotiated and there is no collateral required and no complicated banking processes. However, it is only suitable for small business with relatively less funds demand, because it is less likely to get enormous money from family or friends.

Credit card, this is a short-term source of finance. The benefit is the business can get funds relatively