1. Key Term and Why You Are Interested in It As I sit here reading and focusing on my future, I decided to choose managerial commitment (MC) for the topic I am interested in.  Due to the degree of study that I am working towards, this topic falls within my wheelhouse.  To become successful as a business manager I need to be able to broaden my thoughts and vision on other ways to become successful.  Giving the tools and being informed of areas that tend to be overlooked will set me up for a better career.  Additionally, gaining a better understanding of what managers needs to do and the commitment that they need to apply for the job can make a company successful.  This holds true especially for those who look to take their business overseas and thrive. 2. Explanation of the Key Term The term managerial commitment is used by company executives that participate directly in the aspects of a business’s operations or organizational level tasks.  The level to which commitment is executed or accepted often depends on how much trust and authority the managers have been entrusted with from senior leadership.  “The nature of managerial commitment to an intervention shapes its character: it is not the intervention itself that is key, but the meaning given to it by participants” (Greasley & Edwards, 2015).  A commitment from an employee, manager, or even CEO depends on the level of success and reward that is associated with it.  3. Major Article Summary Due to the reduction of the operating costs within organizations, there are other ways to save money and still produce the same quality of customer service.  This has to do with an increase of employee interaction while implementing a more proactive approach for customer interaction.  “Quality improvement involves the transformation of the entire organization toward customer orientation through employee involvement” (Lämsä & Savolainen, 2000, p. 297).  When it comes to downsizing, senior leadership must retain the managers and workers who produce a higher quality return and takes the lead on company improvement methods.  These improvements are not limited to just the work within the physical company walls, but this also goes for the external representation as well. 4. Discussion a. How the cited work relates to your above explanation. MC is always significant for the overall success and without the proper engagement, there could potentially be a decline in productivity which would lead to a decrease in revenue.  Aside from revenue, the initial path for which a company travels down is typically a direct reflection of those managers that are involved with during initial meetings.  Many organizations may not have a lack of enthusiastic individuals looking to promote within, however, choosing the right individual(s) to lead and represent will take proper vectoring and honest selection to fulfill those positions.  “Management is also responsible for the mode, direction, and speed with which the company advanc ...

1. 1. Key Term and Why You Are Interested in It
As I sit here reading and focusing on my future, I decided to
choose managerial commitment (MC) for the topic I am
interested in. Due to the degree of study that I am working
towards, this topic falls within my wheelhouse. To become
successful as a business manager I need to be able to broaden
my thoughts and vision on other ways to become successful.
Giving the tools and being informed of areas that tend to be
overlooked will set me up for a better career. Additionally,
gaining a better understanding of what managers needs to do
and the commitment that they need to apply for the job can
make a company successful. This holds true especially for
those who look to take their business overseas and thrive.
2. Explanation of the Key Term
The term managerial commitment is used by company
executives that participate directly in the aspects of a business’s
operations or organizational level tasks. The level to which
commitment is executed or accepted often depends on how
much trust and authority the managers have been entrusted with
from senior leadership. “The nature of managerial commitment
to an intervention shapes its character: it is not the intervention
itself that is key, but the meaning given to it by participants”
(Greasley & Edwards, 2015). A commitment from an employee,
manager, or even CEO depends on the level of success and
reward that is associated with it.
3. Major Article Summary
Due to the reduction of the operating costs within organizations,
there are other ways to save money and still produce the same
quality of customer service. This has to do with an increase of
employee interaction while implementing a more proactive
approach for customer interaction. “Quality improvement
involves the transformation of the entire organization toward
customer orientation through employee involvement” (Lämsä &

2. Savolainen, 2000, p. 297). When it comes to downsizing, senior
leadership must retain the managers and workers who produce a
higher quality return and takes the lead on company
improvement methods. These improvements are not limited to
just the work within the physical company walls, but this also
goes for the external representation as well.
4. Discussion
a. How the cited work relates to your above explanation.
MC is always significant for the overall success and without the
proper engagement, there could potentially be a decline in
productivity which would lead to a decrease in revenue. Aside
from revenue, the initial path for which a company travels down
is typically a direct reflection of those managers that are
involved with during initial meetings. Many organizations may
not have a lack of enthusiastic individuals looking to promote
within, however, choosing the right individual(s) to lead and
represent will take proper vectoring and honest selection to
fulfill those positions. “Management is also responsible for the
mode, direction, and speed with which the company advances
along the export development path” (Leonidou, Katsikeas, &
Piercy, 1998, p. 80)
b. How the cited work relates to the other 4 works you
researched.
A bunch of research has been conducted on MC. The results
have produced different points of view while highlighting the
different perspectives from the researchers. The overall goal of
MC, whether it is in healthcare, overseas business dealings, or
the operations within the US military is to place the best
individual in a position that would produce the best results.
While the idea is centered around success, there are times that
personal bias may come into play, leading to the appointment of
the less than qualified. This bias can lead to the reduction in
performance, potentially hostile/toxic environment or even
reduce return on investment.

3. References
Bai, T., & Liesch, P. (2022). Organizational goals and resource
allocation to overseas foreign direct investment. Journal of
World Business, 57(3), 1-14.
Bartczak, S. E., Boulton, W. R., Rainer, R. K., Oswald, S. L., &
O’Malley, K. (2011). INVESTIGATING BARRIERS TO
KNOWLEDGE MANAGEMENT IIMPLEMENTATION IN THE
U.S. MILITARY: A FOCUS ON MANAGERIAL
INFLUENCES. Southern (SAIS) at AIS Electronic Library.
Greasley, K., & Edwards, P. (2015). When do health and well -
being interventions work? Managerial commitment and
context. Economic and Industrial Democracy, 36(2), 355–377.
Lämsä, A.‐ M., & Savolainen, T. (2000). The nature of
managerial commitment to strategic change. Leadership &
Organization Development Journal, 21(6), 297-306.
Leonidou, L. C., Katsikeas, C. S., & Piercy, N. F. (1998).
Identifying Managerial Influences on Exporting: Past Research
and Future D. Journal of International Marketing, 6(2), 74-102.
NO ONE NEEDS TO BE TOLD THAT THE INTERNET IS
REDEFINING modern
business, communications, and research. Virtually every
newspaper and television station,
every day in every country, tells the story of how millions of
computer users tap the global
network for unparalleled access to information.
In its many forms, e-commerce may be defined as any
commercial transaction carried
out, facilitated, or enabled by the exchange of information
electronically. The true value of
the Internet, and the World Wide Web that resides therein, is
that it is borderless.

4. Think of countries as if they were lakes without connecting
canals. With the Internet the
people from one lake can swim easily to the other lake, where
they can sample food, wares,
and culture that they never before had access to.
The second edition of this book, updated only five years ago,
spoke simply of the
potential of the Internet for international e-commerce. Since
then, that prophecy has been
more than realized-big, crossborder business is being conducted
over the Web. The benefit
to business is the capability to leverage the Internet to bring
customers, vendors, and
suppliers closer together, thus getting maximum results.
Economies of scale, operational
costs, and customer service are improved by communicating
directly with the client.
91
BACKGROUND
Once the exclusive province of government and university
researchers, the Internet has
become an information Nirvana for the common business and is
growing at a rate of about
10 to 20 percent a month.
Created in 1989 at CERN, a huge Swiss research laboratory, the
World Wide Web
began simply as a project to link scientists worldwide. But its

5. intuitive, easy-to-use
hypertextual design caused the Web to spread beyond its
original user community. By
accessing the Web with a browsing program, you can now tap a
graphical environment in
which you move among millions of Web sites that offer
everything from sunglasses to Silly
Putty. Most Web pages integrate images, sounds, and text to
advertise their products and
services.
In the 1950s the world sold things on Main Street; in the 1980s
it was the mall; in the
1990s it was the superstore; but in the 2000s it will be at
www.com. Why? As Bill Gates,
the founder of Microsoft, says, "The Net represents frictionless
capitalism."
The Global Marketing Opportunity
No supranational organization or head of state has been able to
bring continents together,
but the Web is uniting the world! There is no president or king
of the Internet, so small
businesses can sell anywhere in the world.
The obvious advantage of the Internet is the ability to bypass
the middle of the supply
chain-that is, the many distributors, wholesalers, and storefronts
of traditional business-to
reach directly to the consumer. Now customers (users and
buyers) can be served directly,
just like the old direct-mail marketing process, but without the
high cost of printing and
postage. More important, the Internet knows no boundaries-it
can reach the potential

6. customer in every nook and cranny of the world, wherever a
person can surf the Web.
In 1998 there were $6.1 billion consumer purchases over the
Net and about $15.6
billion business-to-business sales. By 2001 the increase is
expected to move to more than
$25 billion consumer purchases and more than $200 billion
business-to business sales. Yet
today e-commerce is only 1 percent of total American gross
domestic product (GDP) and
only 0.02 percent of total retail sales. However, by 2003 it is
expected to reach as much as 6
percent of GDP.
Changing Competition
The Web is also changing competition. On-line businesses have
an easier time locking in
their customers with plenty of room for further growth.
Consider geography. As retailers
expand, they must build storefronts and organize distribution
networks, settling for smaller
and smaller markets after hitting the larger ones. The on-line
competitor has the advantage
because the business has instant reach. The cost of acquiring a
customer in another city or
country is the same as finding one locally.
Price is another way that the on-line business wins in the ever-
changing competitive
92

7. world. An on-line seller can undercut the non-Web player. In
fact, some Web businesses are
even offering products and services for free while gaining their
income through outside
advertising.
93
GETTING STARTED
The Internet is not just hype. Companies are making sales on
the Net right now, so why not
get started? A special section on Internet terms is included in
the Glossary at the end of this
book.
Requiring the least amount of financial capital, a Web business
can be started simply by
setting up a virtual officethat is, a computer or television,
proper software, and a modem.
This virtual office, which could be in the back room of your
business, in your home, or on
your lap when traveling, gives you the adaptability and
flexibility to enter your business
environment on an equal footing with the largest companies. In
other words, your business
is no longer tied to a physical storefront or a desk-your Web
page is your storefront. As long
as you can plug into a telephone or cable line (even a satellite),
you can do business. You
can even get faxes through your e-mail system by using services
such as efax.com.

8. The Home Page Presence
The first step in obtaining a presence on the World Wide Web is
designing a Web site,
which is made up of a home page and several supplemental
pages of information (see
Figure 4-1). The home page is to the rest of your Web site as a
book cover is to its
contents. Because your business is international, you should
consider allowing the user to
click on a choice of language-say, English, French, Italian, or
Mandarin. Similarly, you'll
need to decide in how many countries you will have home page
presence. For instance,
Dell Computers has crossed national boundaries by having Web
sites all over the world.
The home page design should be bold and visual but lean and
mean, so that it can
quickly capture attention yet be understood at a glance and lead
the reader to the other pages
of the site. Keep the home page simple. Don't clutter. Make it
easy to navigate. The
prospective customer who gets lost or confused while reading
quickly is gone. Use your
home page to make a few essential points like who you are,
what you offer, and what's on
the rest of the pages. Don't be too commercial. Internet protocol
dictates that you offer free
information and entertainment first, then ask for the sale.
94
Fig. 4-1. Typical Web site page

9. No matter what you are selling, there are already many sites
devoted to the same
products or services. Know your competitors by searching them
out. Learn what they have
emphasized and what is working for them.
All too many businesses rush into this project without thinking
it through. It is essential
to plan ahead by identifying and honing your key messages and
organizing them in a logical
structure, developing a prototype page design, testing it on
representative users, and refining
it through successive iterations. Even after your Web site is up
and running, revisit it often-
keep it fresh by giving users something new, a reason to return.
KEYS TO SITE DESIGN
• Start slowly.
• Place emphasis on content.
• Make the site easy for consumers to get around.
• Avoid using too many graphical elements.
• Be entertaining.
• Make your site graphically pleasing.
95
• Reach sight-impaired readers.

10. • Design for overseas markets with multiple languages.
• Add pages to your site.
• Accept credit cards.
• Give payment options.
• Make it easy to order.
• Provide a shopping cart.
• Provide links.
Do It Yourself
Can you design your own Web site? Of course! Many people do.
Learning HTML code is
not difficult (see Figure 4-2). What is difficult is designing a
Web page that captures the
attention of customers. The technology of design is easy enough
to learn but the art of
getting attention is not, so you might want to consider getting
professional help. Why? Too
many firms turn this task over to a marketing director of the old
school who never got past
e-mail. What you need is a modern Internet "geek" who can
design an entire on-line
transaction from first look to showroom tour to a final
handshake deal.
Software Guide
There are many software tools available to allow you to get
your e-commerce project off

11. the ground. Here is a list of Internet software suppliers;
however, neither quality nor rank is
implied-be aware that the market is changing rapidly so these
may not be around next year.
Partial List of HTML Markup Tags
96
Note: For a complete listing of HTML codes, check the
following Web site: http://www
willcam.com/cmatlhtml/crossname.html Fig. 4-2. Example of
HTML
97
Fig. 4-2. Example of HTML home page (Continued)
98
Have Others Do It
As with any other new endeavor, you will find people in every
city who specialize in Web
page strategy and design. Many of these are recent college grads
who focused their training
in this specialty. Others are employees of major advertising
companies who have the
advantage of the ad firm's years of experience and adapt it to
the Web technology of

12. modern communications.
Domain Name
A domain name is what people type into search engines to find
your Web site. Most
companies use several domain names and aliases such as
"yourcompany.com" and even
"international business"-a generic label that people might type
into a search engine to find
your specialty or industry.
The trick is to get your domain name to the top of the search
engine list.
99
GETTING OUT THERE
It is one thing to have a Web site; it's another to ensure that
customers know it exists and
how to find it. First of all, put your Web site and e-mail
addresses on your brochures,
flyers, trucks, ships, billboards, ads, stationery, and business
cards. Next get your Web site
address listed in an Internet business directory such as
www.directory.net. There are many
such directories and many do not charge listees to be included.
Another approach is to join
a virtual mall-a group of Internet businesses using the metaphor
of a shopping mall. Last
but not least, be certain to get your address on as many search
engines as possible.

13. Search Engines
Search engines compile lists for consumers who surf for a
product. The trick is to get your
address as high on the search engine list as possible. Because
engines use different criteria,
there are several strategies. First in importance is your domain
name. For instance the name
"international business" will bring domain names such as
internationalbusiness.com,
international-business.com, and internationalbusiness.org to the
top of the list. If your
business domain name just uses the initials of your company,
you will find yourself near
the bottom of the list. The right strategy is to use several
domain names. The second trick is
to use descriptive words in the title of your Web pages. A title
such as "ABCD company
discount sunglasses" will come up closer to the top than just the
company name. The same
applies to the HTML document. Sunglass.html will get you
closer to the top than 1234.doc
or abbreviated names.
TOP SEARCH ENGINES
Finding Foreign Markets
There are more than 200 million on-line users worldwideover
half are in the United States
and Canada. Yet the potential market is phenomenal because
everyone who has a computer
100

14. or television set is getting on the Net.
Finding foreign buyers continues to be a market research
problem. As always, start with
the country or region. But where to look? Try the following
databases.
STAT USA/Internet. A service of the U.S. Department of
Commerce, and the site for
the U.S. business, economic, and trade community, STAT-USA
provides authoritative
information from the federal government and includes access to
the National Trade Data
Bank (NTDB) for country and market research. http://www.stat-
usa.gov/
Strategis. A Canadian government trade assistance site,
Strategis has international trade
information and statistics that can be turned into a graphic
presentation of the top 10 markets
for most products. Follow the international and trade links.
http://www.strategis.ic.gc.ca/eng-doc/main.html
Central Intelligence Agency. The CIA Fact Book is one of the
best sources of basic
information on any country.
http://www.odci.gov/cia/ciahome.html
The SBA Office for International Trade. The SBA provides
extensive links and training
resources. http://www.sbaonline.sba.gov/OIT/info/links.html
Michigan State University, Center for International Business
and Education Research

15. (CIBER)- International Business Resources on the WWW.
CIBER has one of the best and
most extensive sites for international markets, including trade
leads and hotlinks on all
aspects of global markets. http://ciber.bus.msu.edufbusres.htm
Tradeport. One of the most extensive international trade
resources on the Internet,
Tradeport is a free site with market information, guidance, and
resource listings as well as
trade leads and international events in the Southern California
area.
http://www.tradeport.org
Finding Foreign Buyers
Of course, there are over 400 trade lead sites; the United
Nations (www.un.org) and the
World Trade Centers Association (www.wtca.org) have lead
services. To reach more than
2 million traders, try these resources.
NEOS-National Export Offer Service. NEOS is a comprehensive
site for links and
access to foreign buyers, directions, and guidance resources.
http://www.exportservices.com/
Europages. With information on 500,000 companies in 30
countries, Europages is an
excellent place to search for companies to contact, by product
or service search as a buyer or
for market research. http://www.europages.com/
Clear Freight. Follow the trade lead links section for an
extensive set of contacts and go
back to the main page for freight forwarder information.

16. http://.clearfreight.com/clear-
internet-trc/trade.htm
Global Electronic Commerce Korea. This is a great site with
links to many other
101
countries with company directories. Try EC Links for an
extensive list of other areas and
trade lead sites. http://commerce.ktnet.co.kr/
Import Export Bulletin Board (IEBB). Sponsored by the Journal
of Commerce, IEBB is
an extensive buy/sell listing and information site with access to
STAT-USA (trade research)
and UN data. It is fee based for full access.
http://www.iebb.com
Beaucoup. This search engine directory lists countryspecific
searches of many nations
and several directories in each country.
http://www.beaucoup.com/
Europeonline. A central access site to all countries in Europe in
local languages and
English, for business, financial, and general information,
Europeonline also provides access
to European Union information and Europages.
http://www.europeonline.com/
Trade Show Central. This free Internet service provides
information on more than
50,000 trade shows, conferences, and seminars as well as 5000

17. service providers and 8000
venues and facilities around the world. http://www.
tscentral.com/
Government Procurement
Ever since the World Trade Organization formalized
opportunities for bidding, government
procurement competition has become worldwide. Here are a few
valuable addresses.
102
PRICING AND MARKETING YOUR PRODUCT
Gone are the days of arbitrary pricing. Because the Internet
offers worldwide openness,
pricing without substance is gone forever. You must continually
check the market and
competition, and provide additional services and features as
necessary to maintain your
price. Places to search are www.price.com and mysimon.com.
Marketing Techniques
The Internet is a place where creativity reigns. Here are some
techniques that have evolved
as the Web grows from childhood to adolescence.
• Set up a chat area.
• Sell advertising on your page.

18. • Create contests for your customers.
• Build customer lists.
• Offer a free catalog.
• Offer coupons.
• Provide information.
• Publish a newsletter.
• Sell access to your products or services.
• Upload your annual report.
Communications
If you don't have an e-mail address, you may as well pack up
and move to the South Pole-
in today's business world it is a must.
E-mail is currently being used 10 to 1 over postal services, and
the rate of change is
growing. Business contracts are being negotiated between
nations routinely. The author
recently negotiated book contracts with a London publisher by
e-mail.
Getting Paid
Yes, you can ask for cash, you can take checks, and you should
accept credit cards, but the
world's standard method of payment for big sales is still the
documentary letter of credit
(see Chapter 6 for a complete discussion). The Internet is able

19. to combine technology with
standard business systems to continue to use the letter of credit
as an easy, trustworthy
payment method.
103
Internet technologies available include document management
software, document
imaging, electronic mail, interactive forms within Web
browsers, and password security
protocols. One source of good information about this subject is
www.AVGTSG.com, a
company that specializes in payment solutions, including
methods for the Internet.
Keeping in Touch
Things are changing so fast in international trade that
businesspeople must read and digest
enormous amounts of material to keep up. However, here are
several publications that
manage to keep pace with the trends:
104
FURTHER READING
How to Grow Your Business on the Internet (3d ed.), by Vince
Emery, published by
Coriolis Group Books. A most comprehensive discussion of the

20. best Internet business
strategies, marketing strategies, and many aspects of on-line
business, based on actual
experience and several years of active participation in the field.
Also has an active Web
site.
Webonomics: Nine Essential Principles for Growing Your
Business on the World Wide
Web, by Evan Schwartz, published by Broadway Books. An
excellent analysis about what
works on-line and does not work. Contains fundamental insights
into Internet business,
global or otherwise.
How to Build a Successful International Web Site, by Mark
Bishop, published by Coriolis
Group Books. An excellent, detailed instruction manual for
creating an international Web
site, including software for language editing and information on
international search
engines.
Marketing Online for Dummies, by Bud Smith and Frank
Catalano, published by IDG
Books Worldwide. A comprehensive guide to marketing
strategies on-line that includes a
software package with many tools.
Selling Online for Dummies, by Leslie Heeter Lundquist,
published by IDG Books
Worldwide. A basic instruction manual for setting up business
on-line, developing a Web
site, and using the tools needed to enhance business results.
Also comes with a package of
software tools and tips.

21. Striking It Rich.com-Profiles of 23 Incredibly Successful
Websites You've Probably Never
Heard Of, by Jaclyn Easton, published by Commercenet Press.
A very exciting account of
a wide variety of Web sites and how they achieved success. This
book contains the
mistakes, ideas, and insights of different on-line businesses and
provides a great
understanding of what it takes for an emerging site to achieve
success. Easton's active
Web site contains updates on the subject and keeps the book
from being outdated.
Doing Business on the Internet, by Mary Cronin, published by
Van Nostrand. This is the
handbook for all those serious about making the most of what
the Internet has to offer
their business. It provides a step-by-step framework for
exploiting the business
opportunities available on the Web.
The next chapter expands the concepts related to both import
and export, developing the
fundamentals needed to "complete the transaction"-namely,
financing, avoiding risk,
shipping, and documentation.
105
Market Entry Motivation
Key Term and Why You Are Interested in It (100 words
minimum)
The key term I have selected from this week’s reading
is Market Entry Motivation. As I was reading through this

22. week’s chapters on world entry, I began asking myself the
question “what makes global market entry so beneficial if it
involves a lot more planning as opposed to just sticking to a
domestic market” and “what are the factors involved in making
the decision to take a product or service to the global market”.
As I was asking myself these questions, I came across the
motivations and wanted to further my application knowledge of
companies actually putting this information and motivation to
practice.
2. Explanation of the Key Term (100 words minimum)
Market Entry Motivation is all about the motivation a
company sees in entering a market. It involves the physical act
of sizing up a market and product and assessing whether or not
their global entry motivations are proactive or reactive. A
company with proactive motivations for going global is doing it
to grow and because they see great value in it. A company
approaching global entry with a reactive approach is doing so
because they are reacting to a situation outside of their control
and have no other option. These are the two greatest motivators
of global market entry, and each breaks down into individual
focuses to determine the greatest influence to going global. For
a proactive company, it may involve making more money, being
more competitive, opportunities in the market, benefits to the
taxes of the company, or other economies. A reactive
motivation might reveal competitive pressure for a company to
perform, extra capacity that must be filled, overproduction, or
an over-saturated home market.
3. Major Article Summary (200 words minimum)
The article I have chosen for my major article is,
“Foreign market entry and expansion – Directions for strategic
organizational growth based on a global system perspective”
(Kumar & Waheed, 2007). In this article, Sameer Kumar and
Usman Waheed study the true motivations for global expansion
and the pitfalls that may come with it. They begin their study
with a substantial literature review portion, where they look at
the general motivators for global expansion, and then narrow

23. those down to some different industries. The general motivators
being an imperfection in a given market or the factor/given
market, preserving a customer base, entering a growing/high
growth market, economies of the operation, or a desire to
control a given raw material recourse. The motivators by
industries identified commoditized industries are driven by
client searching and client gap locations.
After the literature review, they discussed the process
of global market entry and the things to do in order to prepare a
company. The first was a geographic SWOT analysis to identify
all the strengths, weaknesses, opportunities, and threats in a
given geographic location. After the SWOT, a company then
would apply a multi-linear regression model to establish further
macroeconomic variables. Lastly, they use game theory to
identify the optimal way to gain market share in the countries of
choice.
4. Discussion.
a. This article places a heavy focus on the motivators for
specific industries to look to go global with their business.
Motivators, as mentioned above, are the specific reasons a
company will enter a new market in a global context. Whether a
proactive company, or a reactive company, the motivators will
vary depending on the company, industry, and competitors
located in the area. This relates to a lot of what the book was
talking about in terms of motivators for a given company going
global. This article goes a step further and takes those
motivators in application settings of seeking new
investment/expansion opportunities for companies looking to
grow.
b. After seeing a lot of the motivations in this article and the
textbook for global market entry, I decided to focus the
expounding research on different strategies involved in global
market entry and the motivation for some of those strategies.
The first two articles I found on this, both discussed different
aspects of group global market entry. The first was an article
about how Chinese companies have started to used “group

24. entry” as a new model for global market entry as it helps them
enter with an established presence through collaboration
(Masiero et al., 2017). The next article was about partnerships
in going global and how each company should identify the right
partners when going global in order to maximize their success
(Negoro & Matsubayashi, 2021). The next article was about
global branding and using a model to identify the best branding
techniques to keep company reputation when entering a global
market (Omar et al., 2009). Lastly, I read an interesting article
talking about the motivators of going global and how those
motivators often cause competition amongst competitors for a
new market in a country. It looked at the impacts of bribery on
the process of global market entry and how countries fail to
prevent bribery in such a profitable expedition for many
companies (Weismann et al., 2014).
Reference
Kumar, S., & Waheed, U. (2007). Foreign market entry and
expansion – Directions for strategic organizational growth
based on a global system perspective. Information Knowledge
Systems Management, 6(3), 177–196.
Masiero, G., Ogasavara, M. H., & Risso, M. L. (2017). Going
global in groups: A relevant market entry strategy? Review of
International Business & Strategy, 27(1), 93–111.
https://doi.org/10.1108/RIBS-11-2016-0067
Negoro, K., & Matsubayashi, N. (2021). Game-theoretic
analysis of partner selection strategies for market entry in
global supply chains. Transportation Research: Part E, 151,
N.PAG-N.PAG. https://doi.org/10.1016/j.tre.2021.102362
Omar, M., Williams Jr., R. L., & Lingelbach, D. (2009). Global
brand market-entry strategy to manage corporate
reputation. Journal of Product & Brand Management, 18(3),
177–187. https://doi.org/10.1108/10610420910957807
Weismann, M., Buscaglia, C., & Peterson, J. (2014). The
Foreign Corrupt Practices Act: Why It Fails to Deter Bribery as
a Global Market Entry Strategy. Journal of Business
Ethics, 123(4), 591–619. https://doi.org/10.1007/s10551-013-

25. 2012-8
Key Term and Why You Are Interested in It
The key term I have selected for this post is fixed assets. I
opted for this category due to the sometimes complex nature of
how assets are recorded and accounted for in a business. The
intricacy that is applied to correctly allocating financial aspects
such as method of payment and depreciation of the asset can be
complicated as it will have an affect on a company’s financial
reports. In more recent years at my job, I have learned a fair
amount regarding fixed assets and the recording of them so I
was interested to see what more I could learn through this
research.
Explanation of Key Term
Fixed assets refers to “tangible property used in the operation of
a business” according to Satterlee (2018) and can consist of
furniture, buildings, machinery, and equipment, to name a few
(p. 227). Fixed assets, with the exception of real estate since it
appreciates, are depreciated over an extended period of time
based on the normal life expectancy of the given property which
can be beneficial to companies in that it provides a break on
taxes. The determination of how to obtain fixed assets, when
looking to branch out on an international level, takes some time
and research as there can be a variety of options that can aid in
offsetting initial start-up expenses for those companies. A few
aspects to look at would be the benefit of merging with another
company or whether or not to use an existing facility or build a
new one (Satterlee, 2018, p. 227).
Major Article Summary
Fixed assets should be accounted for, and depreciated, in a
manner that best suits the function of the property. Depreciation
can be achieved in ways such as the straight-line method or
even a declining balance method. In their analysis of fixed asset
accounting implementation in Indonesia, Kantun, et al (2019)

26. discuss how tangible fixed assets are crucial for the success of
Micro, Small, and Medium Enterprises (MSMEs) in Indonesia
(p. 1). In Indonesia, there are two sets of standards that are
typically utilized to ensure proper recording of fixed assets.
Those standards are the Financial Accounting Standards for
Micro, Small, and Medium Enterprises (SAK EMKM) and the
Indonesian Financial Accounting Standards (PSAK), both of
which serve as guidelines for the decision making process
(Kantun, et al., 2019, p. 2).
For the MSMEs in Indonesia, some of the aspects that need to
be recorded appropriately are the acquisition price, method of
acquisition, such as cash or credit, and determining which
method of depreciation will be used. According to Kantun, et al
(2019), the need to appropriately record fixed assets not only
affects the reporting found in various financial records, the
recording needs to be correct as it affects how the property will
not only be used, but how it will be depreciated and eventually
released once the timeline for use has expired (p. 2) Just as it is
important in the United States to follow the Generally Accepted
Accounting Principles for various aspects of business,
companies in Indonesia also have similar principles and
standards they must follow in order to properly account for
fixed assets.
Discussion
How the cited work relates to the explanation of key term
The cited work and the key term explanation are relatable in
that fixed assets are a part of any established company and there
is significant importance placed on the proper allocation of
costs associated with any fixed assets. Part of the reporting
process is to determine an appropriate depreciation schedule
that suits the type of property being recorded as well as the
method of depreciation. In the cited article, the author explains
the importance of proper reporting of fixed assets as well as
providing examples of the various methods that can be utilized.
Another area the cited work relates to the explanation is that

27. Kantun, et al (2019) makes a point to acknowledge several
times that fixed assets are used for more than one accounting
period (pp. 1-3). The length of time the asset will be used is
based on the nature of the property and the length of time it is
expected to be utilized within the company.
How cited work relates to remaining articles
The remaining articles relate to the cited work in several ways,
generally referring to the allocation of fixed assets and how that
affects financial information. According to Goldbach, et al
(2019), net investment information can be unclear depending on
depreciation rules or how fixed assets are composed (p. 62).
The uncertainty of the net investments can cause financial
reports to be incorrect, thus affecting budgeting for the future.
Zhang, et al (2019) demonstrate how the construction of a high
speed rail can drastically increase the total of fixed assets for
China (p. 225).
According to An (2018), although fixed assets are capable of
carrying a heavier debt load than intangible assets, fixed assets
can be affected by corporate income tax creating a bias against
them (p. 419). On the other hand, due to the higher level of
initial capital requirements, entry barriers are created, making it
difficult to trade or establish business internationally. (Wright
and Zhu, 2018, p. 354). While there are similarities between the
articles, there are also various viewpoints on how investments
in fixed assets should be allocated for and the affect it can have
on the financial reporting for the company.
References
An (2019) An, Z. On the Tax Bias Against Investments in Fixed
Assets: Empirical Evidence from China. The World
Economy; 42: pp. 419– 428. Retrieved
from https://onlinelibrary-wiley-
com.ezproxy.liberty.edu/doi/full/10.1111/twec.12671
Goldbach, S., Nagengast, A., Steinmuller, E., and Wamser, G.

28. (2019). The Effect of Investing Abroad on Investment at Home:
On the Role of Technology, Tax Savings, and Internal Capital
Markets. Journal of International Economics, Volume 116, pp.
58-73. Retrieved from https://www-sciencedirect-
com.ezproxy.liberty.edu/science/article/pii/S0022199618304069
?via%3Dihub
Kantun, S., Djaja, S., & Kartini, T. (2019). Analysis of Fixed
Assets Accounting Implementation in Micro, Small and Medium
Enterprises (MSMEs) Units in Jember. IOP Conference Series.
Earth and Environmental Science, 243(1) pp. 1-7. Retrieved
from https://www.proquest.com/docview/2557604193?parentSes
sionId=z6%2ByAdR%2BljSC%2Fusi%2Fp9i962ZaAUjaTqMaD
gf%2FbcPlUc%3D&pq-origsite=summon&accountid=12085
Satterlee, B.C. (2018). International Business with Biblical
Worldview, (13th ed). McGraw-Hill.
Wright, J. and Zhu, B. (2018). Monopoly Rents and Foreign
Direct Investment in Fixed Assets, International Studies
Quarterly, Volume 62, Issue 2, pp. 341–356, Retrieved
from https://academic-oup-
com.ezproxy.liberty.edu/isq/article/62/2/341/5049186
Zhang, F., Wang, F., Ou, J., and Yao, S. (2019). Role of High-
speed Rail on Social Fixed Assets Investments in China, Journal
of Chinese Economic and Business Studies, 17:3, pp. 221-244.
Retrieved from https://www-tandfonline-
com.ezproxy.liberty.edu/doi/full/10.1080/14765284.2019.16636
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