Differences in the social, cultural, economic, legal and political conditions of the country affect international business procedures in Haiti.

Many aspects affect the way international business is conducted. Differences in the social, cultural, economic, legal and political conditions of the country affect international business procedures in different levels and degree depending on the countries infrastructure and relationship.

Social differences range from a country's income per consumer, literacy rates, religious beliefs and code of ethics. Social conditions affect the way companies conduct business and the development and promotion of products.

Social differences in Haiti post serious threats to its international business success and the country's ability to change its economic trend. With a huge wealth gap between the impoverished and wealthy, the country's collapsed infrastructure and corrupt judicial system, low literacy rates, not to mention it's unconventional religious beliefs social conditions are dramatically different than most international markets. "Hurdles for businesses in Haiti include poor infrastructure, a high-cost port, an irregular supply of electricity, and customs delays." (Bureau of Western Hemisphere Affairs)

Cultural differences also have an impact on business functions such as customer service management and business decision-making. Cultures vary in their attitude toward property, use of resources, division of labor and how companies conduct business. Marketers must sometimes adopt their campaign strategy depending on the culture and language. Language differences can lead to problems for companies when marketing slogans and concepts don't translate well.

Cultural differences in Haiti exist within the country itself, French is one of two official languages, but it is spoken by only about 10% of the people. All Haitians speak Creole, the country's other official language. English is increasingly spoken among the young and in the business sector. The state religion is Roman Catholicism although some Haitians have converted to Protestantism through the work of...

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INTERNATIONALBUSINESS ENVIRONMENT
INTERNATIONAL TRADE
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INTERNATIONAL
TRADE
THEORY
Mercantilism
Gold and silver were
mainstays of national wealth.
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interests to maintain a trade
surplus  maximize exports
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Adam Smith (1776)
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absolute advantage.
 “positive-sum game”
Limitation: What will a country gain from
trade if it has an absolute advantage in both
products or it do not have an absolute
advantage in any product?
Theory of Comparative Advantage
David Ricardo (1817)
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they have an comparative advantage, then trade
for those they do not have an comparative
advantage.
All countries that participate in trade realize
economic gain  “positive-sum game”
8
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American company taking a majority stake in a company in China.
Canadian company setting up a joint venture to develop a mineral deposit in Chile.
Notice:
Foreign direct investment is in contrast to portfolio investment which is an
Indirect (passive) investment in the securities of another country such as shares .
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