1. QUESTION-1
A foreign-trade zone is basically areas in which the goods may it fall under the umbrella of
domestic good or foreign good are treated in a same manner. This is done basically to
promote the trade in that area. The goods and services traded in this area would all be treated
in the same way.
Foreign trade zone could be use by exporter in such a way that it could make agreement with
the countries importing in this country to treat them in the same good manner. The
welcoming behavior in this area could gain acceptance by other countries and thus leading to
increased and easy exports.
The importer could use this by importing more and more products on easy terms to such
countries as this would help them to earn profits.
The difference between foreign-trade zone and bonded warehouses is that in the foreign trade
zone, goods and items could be sold at low duty rates but no amendments can be done to the
product. While in bonded warehouses the goods could be altered and the manufacturing
could be done in different areas.
QUESTION-2
As I was already in trade with companies in Spain previously so apparently its not a very
difficult task start business in Madrid though some limitations needs to be well thought-out even
then. First of all the declaration that the buyer is purchasing these goods for the safety purpose,
their business is officially permitted and the operations are not in opposition to the rules and
regulations of mutually of the countries. This could be done by going on web and searching for
the listed companies in Madrid secondly by going on the website of the company. Lastly I could
also seek advice from the previous buyer who could be supportive to assure that the buyer is
buying the products for legal rationale.
I would undertake the following steps:
search for the listed companies b y the government in Madrid
verify the recognition of the previous license in Madrid
Consult a third party for examination

2. Undertake a proper contract
Form an official agreement
QUESTION-3
Fedex details:
LAKE GROVE, OR 97035 UNITED STATES to PARIS, 91400 FRANCE
Buses rate 82.74
Fuel charges 12.42
Total 95.16.
UPS details:
LAKE GROVE OR 97035 UNITED STATES to PARIS, 91400 FRANCE
Buses rate 80.12
Fuel charges 12.50
Total 92.62
Analyzing the charges for both of the companies I would go for the services of UPS for the
shipment of the products from United States to France.

3. QUESTION-4
Satellite TV has made it very easy for the companies to promote their products in many areas
at a time. The best way to utilize thus facility with minimum cost is using the international
language. And when we think a bout a language which is understood by most of the people
and could be used globally as a medium of instruction is ‘English’. So satellite TV could be
used by making ads in English language which would be understood by majority of the
people. Second comes that before making an ad companies should do a proper research on
the words chosen that they don’t convey any wrong statement in the local languages.
Because previously many companies have gone through with problems due to this. The
English ads could be translated later in the local languages by using the standard ad which
was made initially for the promotion of these products. As this also helps in saving a lot of
cost for the company. And yes above all proper research should be done on the legal system
of the countries where the products need to be promoted in order to avoid any kind of
charges later on. So satellite TV advertisement could be very beneficial if used properly and
smartly to save the cost for the companies allowing with to promote the product worldwide.
QUESTION-5
The ease of advertising on the satellite has increased the need for standard ads in my opinion.
Because now days if we look at the ads of many companies we could see that they are producing
a standard ad and then translating it into different regional languages. For instance Dew ads are
standard ads, means a single ad is shown in all the parts of the world and the only change is its
translation in the local language where it’s being on aired. Similarly walls is also sometimes
using g this strategy as the mind set of all the youth regarding ice-cream is same. So the need for
standardization has increased. The problems associated with this are that the translation
sometimes becomes difficult as the literal meaning of some word could be strange. Secondly the
costume of the actors and actresses used in the advertisement could be a problem. As the ads
made in USA, Canada, China do not care about the dresses worn by the artists. On the other hand
when the same ad is on aired in Pakistan the dresses of the female actresses could be an issue for
the viewers. Another interesting thing is that different colors have different meanings in different
cultures so the selection of colors become very difficult when going for a standardize ad to avoid
any kind of offence to any culture and region. Lastly the celebrities chose should not be
controversial as this has also been a problem previously.

4. QUESTION-6
The differences are very major and one could easily differentiate between a Pakistani and
foreign magazine. The first thing I noticed is that foreign magazines use top personalities of
every field for the purpose of advertising in their magazines while Pakistani magazines only
focus on the TV and film industry to choose the celebrities. Secondly foreigners focus on
creativity and pictorial messages more than the written information in their magazines while
Pakistani magazines are more inclined towards giving written information to their viewers.
The creativity in foreign magazines is marvelous and the color combination is fantastic to
gain the attention of the viewer. While in Pakistani magazines much importance is not given
on any theme or idea, colors are not focused to that extent as in the foreign magazines rather
the whole focus is on the personality. Cost spend on the foreign advertising is very high and
this shows their concern towards the advertisement of the products on the contrary in
Pakistani companies the budget for advertisement is not very high consequently giving
average advertisement strategies. The audience of Pakistan is not very mature to understand
the hidden messages in an ad so the companies produce easy to understand ads. The foreign
audience is mature enough to understand the hidden messages so the ads are accordingly
made, with a hidden message and more technical jargons with great focus on the colors and
pictorial messages.
QUESTION-7
The Company I chose is Bonanza which is using horizontal company structure and the sales
force is very diverse and skilled. The operations are all carried out in the local country,
previously sold also within the country only. After its popularity Bonanza decided to export
its products to other countries as well. When we look at the sales force structure of the
company we could see that the sales force is determined to make the product available in
every part of the country. The network of sales force is quite diverse and the aim is to make
the product available for every potential customer. For international dealings, the company is
utilizing the services of airlines and many stalls are available in international markets to
facilitate the customers in foreign countries. The company has used this structure because the
main focus of the company is for the customers of their own country and the foreign
customers are of secondary importance.

5. The structure of sales force is described below:
Sales head
Sales executive
Staff
QUESTION-8
Immigrant: as the world is becoming a global village and the opportunities are becoming
equal for every individual living in any part of the world so the foreign workers are becoming
a main source of multinational manpower. This turns to be very useful for the international
companies but is also adding cost to there expense. The drawback which could be found is
that these employees need to be trained according to the requirements of this new company.
These employees sometimes also find it difficult to meet up with the challenges of cultural
differences.
Broad based-personnel: this phenomenon is basically when the employee does not belong
to the parent company. This helps in making the company a truly international company
having diverse cultural in the company and helping in top level decision making when
entering into new areas for operation by the company.
Over-seas employees: the rapid growth in the population of overseas employees has also
been very helpful for multinational companies. Their mobility has helped in the fast
exchange of goods and services among the countries. Generally people from underdeveloped
countries go to developed countries in search of jobs so they are satisfied with low wages
too. This helps in decreasing the cost for multinational companies. They are helpful in the
sales of the goods and services as well for the multinational companies.
QUESTION-9
When hiring an employee good companies make sure to do the evaluation of the employee’s
individual and family’s evaluation. The individual assignment is something done by almost
all the companies but the evaluation of the family’s is done by only by very good and smart
companies. This is most important in case of foreign employees to know weather then
employee’s family could adjust to the host country or not.

6. The evaluation of the families helps the company to design the motivational plans for the
individual. Because an individual with a large family would be motivated (not all the time)
by giving capital reinforcement because this helps to improve his standard of living. Contrary
to this an individual with small family could be motivated by giving reinforcement in the
form of vacations and free trips. The individuals living with their families would not want to
work for late hours in offices so they should not be hired for such positions in first place to
avoid problems afterwards.
Another most important thing which could be decided by keeping in mind the family of the
individual is the transfer of that employee. Because some individuals are reluctant to shift to
other cities when their families can not accompany them.
Considering the above discussion on the importance of evaluation of the family before
hiring it should be mandatory for the companies Human resource department to do the
family evaluation before his/her selection.