International Business and E-Business

This section explores how globalisation (the increasing interconnectedness of economies, cultures, and technologies) creates both opportunities and challenges for different types of enterprises. We begin by understanding international business as the commercial activity that crosses national borders, enabling companies to access new markets, technologies, and capital. A key player in this system is the multinational corporation (MNC), which builds global capacity by operating production, sales, and services in multiple countries, often contributing to economic integration and job creation in host nations like Ghana. Finally, we focus on Ghanaian Indigenous Businesses (locally founded firms that rely on indigenous entrepreneurship ecosystems and serve both domestic and export markets). Through this, you will see how globalisation influences business strategies differently for MNCs and indigenous Ghanaian entrepreneurs.

KEY IDEAS

• Exporter is a person or company that sells goods or services to customers in another country.

• Ghanaian Indigenous Businesses are businesses in Ghana that are owned and run by Ghanaians. They are often small and make use of local ways of doing business.

• Globalisation refers to how countries around the world are becoming more connected through trade, travel, technology, and the sharing of ideas.

• Importer is a person or company that buys goods or services from another country and brings them into their own country to sell or use.

• International Business are conducted between countries. This includes buying, selling, and investing across national borders.

• Multinational Corporations (MNCs) are large companies that have their main office in one country but also have branches or offices in many other countries.

GLOBALISATION Meaning of Globalisation

Globalisation describes the way the world is becoming more connected. Countries now share goods, services, information, ideas, and cultures more than ever before.

This means:

1. A product made in one country can be used or sold in many others.

2. People can communicate instantly across the world.

3. Music, movies, food, and fashion from one country or region can quickly become popular in another place in the world.

Examples that illustrate this include

1. A mobile phone designed in the USA, made in China, and sold in Ghana.

2. Afrobeat music from Africa is now enjoyed in Europe and Asia.

3. News spreads instantly worldwide through the internet.

4. War in one country could easily affect other countries economically.

Drivers of Globalisation

The drivers of globalisation are the main forces that make the world more connected and interdependent. Summarised below are the six key drivers with examples

1. Technological Advancements

New digital tools like mobile phones, computers, the internet, and modern machines have made communication and work faster and easier across borders.

Example: A designer in Ghana can send a clothing design instantly to a manufacturer in China using email or video calls, saving time and travel costs.

2. Trade Liberalisation

Lowering or removing tariffs and trade barriers allows countries to buy and sell goods and services more freely, making it cheaper for businesses to reach new markets.

Example: Ghanaian cocoa can be exported to Europe without heavy taxes, making chocolate producers more willing to buy it.

3. International Institutions and Agreements

Global organisations like the World Trade Organisation (WTO), International Monetary Fund (IMF), and World Bank, along with trade agreements such as NAFTA and the EU, set rules and support fair trade between nations.

Example: Under WTO rules, a country cannot suddenly ban imports from another member without a valid reason, which protects exporters from sudden losses.

4. Foreign Direct Investment (FDI)

Businesses and countries invest in each other’s economies, building factories, offices, or shops, which creates jobs and boosts growth.

Example: Toyota building an assembly plant in South Africa creates local jobs and gives the country access to advanced car-making skills.

5. Improved Transportation Systems

Faster ships, airplanes, and road networks make it easier and cheaper to move goods and people internationally.

Example: Fresh flowers from Kenya can be flown overnight to Europe and sold in markets the next morning.

6. Growing Market Demand

Increasing demand for goods and services from other countries encourages companies to sell internationally to find more customers and earn higher profits.

Example: Nigerian music (Afrobeats) is streamed worldwide, leading to concerts and merchandise sales in Europe and America.

Figure 4.1: Real-life globalisation factors Impact of Globalisation on Local Businesses Globalisation affects local businesses in both positive and negative ways. Some are the main impacts are explained below:

1. Increased Competition

International companies often have bigger budgets, better technology, or stronger brands, making it hard for small local businesses to compete.

Example: A local electronics shop may lose customers to big global brands like Samsung or Apple that offer more variety.

2. Access to Larger Markets

Local companies can now sell products abroad through online platforms and partnerships.

Example: A Ghanaian bead-maker can sell jewellery to customers in the USA via Etsy or Amazon.

3. Pressure to Innovate

To stay competitive, local businesses must improve products, services, and processes.

Example: A local bakery might start selling bread online with home delivery to compete with foreign bakery chains.

4. Cheaper Raw Materials and Inputs

Businesses can buy materials from countries where they are less expensive, lowering costs.

Example: A shoemaker in Kenya can import cheaper leather from Ethiopia instead of buying more costly local leather.

5. Risk of Losing Market Share

Foreign products may attract customers with better prices or branding, reducing sales for local firms.

Example: A local clothing store may lose customers to international fast-fashion brands like H&M or Zara.

6. Improved Skills and Knowledge

Exposure to global markets teaches businesses modern techniques and strategies.

Example: A local hotel may adopt international hospitality standards after working with a global travel agency.

7. Job Creation and Outsourcing

Foreign companies may employ local workers or partner with local suppliers.

Example: A global sportswear brand may hire a Ghanaian garment factory to produce T-shirts for export.

Figure 4.2: Impact of globalisation Summary ₁. Globalisation connects people, businesses, and cultures across the world.

2. It helps local businesses grow but also pushes them to work harder and improve.

3. It is important for local businesses to adapt, learn, and innovate to stay competitive in a global world.

Activity 4.1 Meaning and Drivers of Globalisation

1. Use your digital device (e.g., Phone, tablet or computer) to search online for the meaning of and drivers of globalisation.

2. Write down the meaning of globalisation in your own words based on your research.

3. Extend your research to identify four drivers of globalisation. Write your ideas in the table below S/N Drivers of globalisation Explanation 1 2

4. Compare your findings with a partner or as part of a whole class discussion.

5. Review the similarities and differences in your research findings compared to those of your peers. Add any key points you have missed.

6. Using the picture below for reference, write a short paragraph in your workbooks summarising the concept of globalisation.

Activity 4.2 Impact of Globalisation on Local Businesses

1. Think and write four foreign products that are found on the Ghanaian market in your area.

2. Write the names of similar products that are made by local businesses.

3. Compare the prices of those foreign products with those of the local ones.

4. Write down your observations.

5. Do you think the local business are doing better than their foreign ones?

6. Share your thoughts with a classmate.

7. Complete the table below by examining the impact of globalisation on local businesses .

SN Impact of globalisation on local business 1 2 Extension Activity Globalisation and my Daily Life

1. List five items you use daily (e.g., phone, shoes, shirts, tv, iron, blender, etc.).

2. For each item,

a. Identify where it was made or imported from (check labels if possible).

b. Write how the listed items got to you (e.g. shipped from abroad, bought in a local shop).

c. Note whether it reflects any cultural influence (e.g. language on packaging).

SN Items I use daily Origin (Made in) Reason for my choice?

Remark (local/ foreign taste) 1 2

3. Give reasons why you are more inclined to local products or foreign products?

4. You could use a table such as the one above to record your answers to these questions.

5. Write a short paragraph about how globalisation impacts your daily life.

1. Access to Larger Markets

Globalisation allows businesses to sell products and services in many countries, not just their own. This increases sales, profits, and growth opportunities.

Example: A Ghanaian chocolate brand can export cocoa-based products to Europe, Asia, and America, reaching millions of new customers.

2. Increased Employment Opportunities

When companies set up new branches or factories abroad, they create jobs for local communities.

Example: When Samsung opened a manufacturing plant in Vietnam, thousands of local people were employed in production and administration.

3. Sharing of Knowledge and Technology

Countries and businesses can learn from each other by sharing new ideas, inventions, and modern equipment.

Example: Japanese car manufacturers share advanced manufacturing techniques with factories in Africa, improving production quality.

4. Lower Prices for Consumers

Producing goods in countries with lower costs can make products cheaper. Competition also pushes prices down.

Example: Clothing brands like H&M produce garments in Bangladesh, making them more affordable for global shoppers.

5. Improved Quality of Goods and Services

To compete globally, companies must improve their products and services.

Example: Apple invests heavily in product design and customer support to maintain its strong global market position.

6. Cultural Exchange

People share food, fashion, language, music, and traditions across countries.

Example: Sushi from Japan, Afrobeat music from West Africa, and Italian pizza are enjoyed worldwide.

7. Economic Growth

More trade and investment from globalisation boost national income and strengthens the economy.

Example: Singapore’s rapid economic growth was driven by attracting foreign investment and becoming a global trade hub.

8. Lower Costs

Businesses can buy cheaper raw materials or hire affordable labour from other countries.

For example, a UK furniture company imports affordable wood from Malaysia to reduce production costs.

9. Brand Recognition

Operating internationally makes brands more well-known and trusted.

Example: Coca-Cola is sold in over 200 countries, making it one of the most recognised brands in the world.

Figure 4.3: Benefits of globalisation Broader Challenges of Globalisation ₁. Job Losses in Some Sectors Companies may move production to countries with cheaper labour, leading to job losses in higher-cost countries. For example, many US textile factories closed when production shifted to China and Vietnam.

2. Widening Income Inequality

Globalisation can sometimes make the rich richer and the poor poorer. While some people benefit from new jobs and opportunities, others may struggle as their jobs are replaced by cheaper labour from abroad. Example, skilled tech workers in India see rising salaries, while unskilled factory workers in the US may face unemployment.

3. Cultural Erosion

Global culture can overshadow local traditions. For example, traditional African clothing styles may be replaced by Western fashion trends among younger generations.

4. Environmental Damage

Increased production and transport cause more pollution. Example, Fast fashion brands produce large amounts of clothing waste and contribute to water pollution.

5. Exploitation of Workers

Some global companies pay very low wages in developing countries. For example, reports of unsafe working conditions in garment factories in Bangladesh have sparked global protests.

6. Economic Dependence

Countries relying too heavily on global trade can be hit hard by economic crises elsewhere. For instance, during the 2008 global financial crisis, export-dependent economies like Iceland suffered severe recessions.

Figure 4.4: Broader challenges of globalisation Challenges Specific to Local Businesses Globalisation poses specific challenges to local businesses. If a business is considering expanding in a global market they would need to think about:

1. Legal and Regulatory Requirements

Complying with foreign laws can be complex and costly. For example, a Ghanaian food exporter must meet strict European Union health and safety standards before selling products there.

2. Cultural Differences

Businesses must adapt to local preferences and customs. Example, McDonald’s changes its menu in India to include vegetarian options in line with local diets.

3. Managing Logistics

Shipping goods across borders can involve customs delays and transport challenges. For

example, a Kenyan flower exporter may face flight delays that affect delivery freshness.

4. Communication Barriers

Different time zones and languages can slow down operations. Example, a Canadian company working with suppliers in China must manage a 12-hour time difference.

5. Loss of Market Share / Small Businesses Closing Large global companies can outcompete local shops with lower prices or better products. Example, many small bookstores closed when Amazon expanded into their markets.

Figure 4.5: Challenges of globalisation to local businesses Summary Globalisation brings many opportunities for businesses to grow and succeed, like bigger markets, lower costs, and better technology. But it also brings challenges, especially for small or local businesses, such as tougher competition and cultural changes.

Activity 4.3 Benefits and Challenges Global Businesses Face (A)

1. Your teacher will arrange you in small groups of no more than five and ask you to research either the benefits or challenges of globalisation.

2. Working as a group, research your assigned brief, thinking about how companies operate in a global market and the impact on local economies.

3. Nominate representatives from your group to present your work to the class.

4. Listen to the presentations from other groups. Can you add to your own work based on the presentations of the groups working on the same brief?

5. Take notes from the presentations of those groups working on the alternative brief so that you have a record of these factors.

Activity 4.4 Benefits and Challenges Global Businesses Face (B)

1. Working in pairs or small groups, identify a company (e.g., clothing company, electronic company, or fast-food chain, etc.) planning to expand to a new country.

2. Give your company a name of your choice.

3. For your chosen company, brainstorm:

a. Four benefits your company will gain by expanding globally.

b. Four challenges the company will face.

c. Suggest how you will solve or manage each challenge.

4. Present your work as a mind map and show if and how your ideas might be connected.

5. Share mind map with another group members for feedback.

Extended Activity Debate

1. Form two groups with your classmates (group A and group B) to prepare for a debate on the pros and cons of globalisation

a. Team A argues that globalisation is mostly beneficial.

b. Team B argues that globalisation has more challenges than benefits.

2. Write down your arguments based on textbooks, online search etc.

3. Prepare your arguments and present the case for or against the motion in class. Be prepared to answer questions or justify your arguments.

4. After the debate, the class should vote on which group made the strongest case.

What is International Business?

International business means doing business with people or companies in other countries. It involves the buying and selling of goods and services, sharing knowledge, using technology and investing money across national borders.

In other words, it is when a company imports, exports, or sets up business in another country to make profit and grow.

Examples of International Business

Below are some real-life examples that show how international business works:

1. A Ghanaian company sells cocoa beans to the USA.

2. A Canadian company buys wine from France to sell at home.

3. Tesla builds car factories in China to sell cars to Chinese customers.

4. Starbucks opens coffee shops in Japan, the UK, and China.

5. Unilever sells soap, food, and drinks in over 100 countries.

6. Microsoft offers its software and services in many parts of the world.

7. A Ghanaian company hires people from India to handle managerial service.

8. European clothing brands get their clothes made in Bangladesh or Vietnam.

9. Amazon sells products online to customers in more than 200 countries.

10. Deloitte helps businesses around the world with auditing and financial advice.

Key Features of International Business

The key features that differentiate international business from local businesses include:

1. Cross-Border Transactions

International business means buying, selling, or exchanging goods and services between companies in different countries. These can be imports (buying from other countries) or exports (selling to other countries). Businesses must follow shipping rules and customs laws to keep things running smoothly. For example, a Ghanaian cocoa exporter sells cocoa beans to a chocolate manufacturer in Switzerland.

2. Global Market Expansion

Companies grow by entering markets in other countries. This gives them access to new customers and reduces the risk of depending on only one market. Example, Samsung sells its smartphones in over 100 countries, not just in South Korea.

3. Use of Foreign Currency

When trading internationally, businesses often have to use different currencies and deal with changes in exchange rates. For instance, a Kenyan flower exporter selling to the UK receives payment in British pounds but pays local suppliers in Kenyan shillings.

4. Cross-Cultural Understanding

International businesses need to respect differences in language, traditions, and ways of doing business to build good relationships. For example, McDonald’s changes its menu in India to include vegetarian options, respecting cultural and dietary preferences.

5. Adherence to International Laws and Regulations

Companies must follow both their home country’s laws and the laws of the countries they trade with. This includes taxes, trade limits, and safety standards. A typical example is, a car manufacturer in Japan exporting to the US must meet US vehicle safety and emission regulations.

6. High Risk and Uncertainty

Doing business across borders involves risks such as political problems, currency changes, and trade restrictions. Companies must plan carefully to reduce these risks.

For example, a company in Europe trading with Russia may face sudden sanctions that affect its sales.

7. Large-Scale Operations

International businesses often operate in many countries, with large amounts of trade and complex operations. They must manage production, shipping, and sales across different locations. For example, Amazon has warehouses in multiple countries to deliver products quickly to customers worldwide.

8. Importing An importer is a person or company that buys goods or services from another country and brings them into their own country to sell. For instance, a company in Ghana buys electronics from China and sells them in local markets.

9. Exporting An exporter is a person or company that sells goods or services to customers in another country. For example, a coffee producer in Ethiopia sells coffee beans to buyers in Italy.

Figure 4.6: Key features of international business

Activity 4.5 Meaning and Key Features of International Business

1. Read the scenario below and answer the questions that follow:

Scenario: Elegance Wear’s Global Reach

Elegance Wear is a Ghanaian fashion brand based in Accra. The company designs and produces stylish clothing that appeal to customers beyond Ghana’s borders. To create its unique collections, Elegance Wear imports premium fabric from China. The finished clothes are sold not only in local markets but also shipped to customers in Nigeria. To expand its customer base, Elegance Wear advertises online in the United Kingdom, reaching fashion enthusiasts far from Africa.

Questions

a. What activities in this case involve more than one country?

b. How does Elegance Wear’s business go beyond Ghana’s local market?

c. What do you think the term “international business” means based on this example?

d. What are some key features of international business you can identify in the scenario?

e. Why might a company like Elegance Wear choose to operate internationally rather than only locally?

2. In pairs, summarise your ideas and complete the following table Meaning of international business with examples International business means ..........................................................................

Examples include: ...........................................................................................

Key features of international business Extended Activity The role of foreign currencies and exchange rates in international business Part 1

1. The items on the table below are in an online store.

2. How much in Ghana Cedis will you use to buy each one based on the exchange rates.

3. Write the country of origin of the various currencies.

International Business and Currency Challenges

Products Prices Country of

currency Exchange rate Equivalent Prices in GHS Jeans trousers US$150.00 US$1=GHS10.00 Shoes £400.00 £1 = GHS14.00 Smartphones €25,000.00 €1=GHS15.00 Laptop ¥ 25, 000.00 ¥1=GHS7.00 Bose Speaker KSh50, 000.00 KSh10=GHS1.00 Wrist watch C$250.00 C$1= GHS 5.00 Part 2

1. Form small groups of no more than five to prepare and perform a short role play based on a scenario showing an aspect of international business, for example a Ghanaian cocoa producer arranging to export their goods to a chocolate company in Germany.

2. Assign roles among yourselves:

a. Exporter (e.g., cocoa farmer in Ghana)

b. Importer (e.g., chocolate company in Germany)

c. Shipping company

d. Government (customs & regulations)

e. Currency exchanger (forex bureau)

f. Marketing team (selling the product globally)

3. Each person should prepare his/her part of a simple business deal. Example:

a. Exporter sells product.

b. Importer buys but must pay in different currency.

c. Government checks trade laws and regulations.

d. Marketing group decides how to sell in a new market.

4. Act out the roles in a mini business negotiation in class.

Why Businesses Trade with Other Countries

International business means selling or buying goods and services across borders. But why do businesses want to do that? Ten reasons are summarised below:

1. Market Expansion

Businesses enter foreign markets to reach new customers, earn more income, and avoid depending only on their local market. This helps them meet global demand for their products or services. Example: Samsung sells smartphones not only in South Korea but also in Africa, Europe, and the Americas to grow its customer base.

2. Diversification Operating in different markets allows companies to spread their risk. If one market faces economic problems, they can still earn income from others. Example: Coca-Cola sells drinks worldwide, so if sales drop in one country, they can rely on sales from others.

3. Cost Efficiency

Some companies move production to countries with cheaper labour or production costs to save money and offer competitive prices. Example: Many clothing brands manufacture in Bangladesh to reduce production expenses.

4. Access to Resources

International trade allows companies to get resources or skills not available in their home country. Example: Japan imports oil from the Middle East because it has very few natural oil reserves.

5. Technological Advancements

Working internationally can expose companies to advanced technologies and better business practices. Example: An African agricultural company may adopt modern farming machinery from Europe to increase productivity.

6. Economies of Scale

Producing and selling in larger quantities across countries can lower costs per unit and increase profits. Example: Toyota manufactures cars on a large scale, reducing production costs and making their cars more affordable.

7. Global Competition

To stay ahead and keep up with rivals, companies may expand into international markets. Example: Apple sells its products worldwide to compete with global brands like Samsung and Huawei.

8. Brand Recognition

Expanding internationally makes a company’s brand known globally, which builds trust and attracts more customers. Example: Nike is recognised in almost every country, which boosts its sales and brand value.

9. Government Incentives

Some countries encourage foreign businesses by offering tax breaks, subsidies, or trade benefits. Example: The United Arab Emirates offers tax-free zones to attract international companies.

10. Strategic Alliances and Partnerships

International expansion can lead to partnerships with local companies, making market entry easier. Example: Starbucks partners with local businesses in different countries to adapt its menu and expand successfully.

Summary International business helps companies to:

1. grow and reach new markets

2. take advantage of economies of scale

3. get useful resources

4. learn from others

5. compete globally

Activity 4.6 Reasons for International Business

Part 1

1. Working in small groups of no more than five:

a. List ten items that are used and made in Ghana.

b. List ten items that are used but not made in Ghana.

c. Explain how Ghanaians get hold of products they use but which are not produced in Ghana.

d. Why does Ghana not produce those foreign products that her citizens need?

2. Write down the reasons why the following companies are doing business in Ghana.

In your groups, discuss at least three benefits that Ghana derives from each of these foreign businesses.

SN Foreign Companies

in Ghana Reasons for doing business in Ghana Benefits Ghana gets from them 1 MTN 2 UNILEVER GH 3 Access Bank

2. Based on your discussions in the above activities, explain the reasons for international business.

Part 2

1. Your teacher will assign your group a number of reasons for international business.

2. Based on your discussions in part 1 and further research, prepare a short presentation on each of your assigned reasons, linking these to the features of international business and citing examples.

3. You could prepare your presentation on flip chart paper or as a poster or digital presentation.

4. Be prepared to answer questions from your peers or teacher on your presentation.

Extended Activity

Case study: Choco-Sweet – A Journey Across Borders Choco-Sweet is a small chocolate company based in Ghana. It started as a local business producing delicious chocolates using high-quality Ghanaian cocoa beans. For years, Choco-Sweet sold its products in Accra and nearby towns. As the company grew, the owner, Akosua Mensah, started thinking about expanding beyond Ghana. She noticed that people in other countries loved African cocoa and were becoming more interested in natural, handmade chocolates. After doing some research, she decided to take her business international — starting with the UK, South Africa, and the United States.

Choco-Sweet wanted to reach more people. Ghana’s population is limited, but the UK and the USA have millions of chocolate lovers. Selling abroad could increase the company’s profits. By entering international markets, Choco-Sweet hoped to make its brand more popular worldwide and promote Ghanaian cocoa as a global treasure. Akosua wanted to protect her business. If something went wrong in Ghana (like an economic crisis), she could still earn money from customers in other countries.

1. Answer the following questions based on the case study:

a. Beyond the main reasons Choco-Sweet expanded to other countries, state other possible two reasons why that could have pushed the company abroad.

b. Do you think Akosua made a good decision? Justify your answer.

c. If you owned a small business in Ghana, what country would you expand to, and why? Give your reasons.

d. Can you think of another example of a local product that could be successful internationally?

2. Record your answers in the form of a short report and share with your teacher for feedback.

Benefits of International Business

Opting to expand internationally offers many advantages to businesses. These include:

1. Profitability and Growth

Expanding to other countries gives businesses more chances to earn higher profits and grow over time. Example: A Ghanaian cocoa company selling chocolate in Europe and Asia can earn more money than selling only in Ghana.

2. Competitive Advantage

Working in international markets can give a business an edge by offering products or services that competitors at home cannot match, using cheaper production, or gaining access to new technology. Example: A Kenyan clothing brand using Italian fabric may offer better quality than local competitors.

3. Market Expansion

Selling in foreign markets allows businesses to reach more customers beyond their home country. Example: An Indian mobile phone company selling in Africa reaches millions of new buyers.

4. Diversification and Risk Reduction

Operating in several countries helps spread risk so the business is not fully affected if one market struggles. Example: A US car manufacturer selling in both America and Asia can still earn money even if sales in the US drop.

5. Access to Resources and Talent

International business lets companies use resources or skilled workers found in other countries. Example: A Japanese electronics company hiring engineers from Germany to improve product design.

6. Cultural Exchange and Understanding

International trade encourages people from different cultures to work together and learn from one another. Example: A Nigerian fashion brand collaborating with designers from France creates unique designs blending both cultures.

Figure 4.7: Benefits of international business Challenges of International Businesses Conversely, expansion is not without risk. Some of the challenges of expanding internally include:

1. Different Market Rules

Governments can change trade policies, add taxes, or limit imports, which can disrupt business. Example: A UK food company faces higher costs after a foreign country raises import taxes on packaged goods.

2. Legal Differences

Every country has its own laws on taxes, labour rights, and the environment, and companies must follow them. Example: A South African mining company must meet stricter environmental rules in Canada than at home.

3. Cultural Barriers

Business customs and communication styles vary between countries, and misunderstanding them can hurt relationships. Example: A US company loses a deal in Japan because it ignored local traditions of formal greetings and gift-giving.

4. Logistics and Operations

Shipping goods internationally can be slowed by customs checks, poor infrastructure, or transport strikes. Example: A clothing shipment from China to Brazil is delayed for weeks due to port congestion.

5. Money and Currency Issues

Exchange rates change daily, which can affect profits, and banking systems differ between countries. Example: A European exporter earns less when the local currency weakens against the US dollar.

6. Political Problems

Unrest, protests, or government changes can disrupt business activities. Example: A French oil company halts operations in a country experiencing political violence.

7. Ethical Expectations

Global customers expect fair treatment of workers, environmental care, and honesty.

Breaking these standards can harm a company’s image. Example: A clothing brand faces boycotts after reports of using child labour in another country.

Figure 4.8: Challenges of international business

Activity 4.7 Benefits and Challenges of International Business

1. Your teacher will split the class into two groups – group A and group B. Each group will be tasked to analyse the benefits or challenges of international business.

a. Group A: Analyse the benefits of international business

b. Group B: Analyses the challenges of international business

2. Your group should prepare a short presentation to the other half of the class on their assigned subject.

3. Be prepared to answer questions from your peers and justify the reasoning behind the reasons benefits or challenges you have presented.

4. Group A should take notes of Groups B’s presentation and vice versa in order to understand the other group’s assignment.

5. Read the case below and answer the questions that follow Extended Activity Case Study: AfroFashion AfroFashion is a clothing company based in Enchi, Ghana. It produces stylish, modern clothes using African prints and designs. The business became very popular locally, especially among young people. After seeing demand on social media from people in Europe and North America, the owner, Yayra, decided to expand the business internationally.

She opened an online store and started shipping clothes to countries like the UK, the USA, and Germany.

After reading the case study, answer the following questions.

1. What are the top three benefits AfroFashion is likely to gain from doing business internationally?

2. Write three biggest challenges AfroFashion will face? Why?

3. If you were Yayra, how would you solve the problems faced?

4. Would you advise a small business in your community to go global? Explain your answer.

5. Write your answers as a short report and share this with your teacher for feedback.

Extended Activity

Selling Online Internationally and Going Abroad to Open a Shop Read the two scenarios below and answer the questions that follow.

Soboat runs a Ghanaian food business and considering two different options to expand his business.

Option 1: Selling Online Internationally

Soboat is planning a creating an online store where customers around the world can order Ghanaian food products. He will use social media to promote his products and ship directly from Ghana to customers in the US, UK, and Canada.

Option 2: Opening a Physical Store Abroad

Soboat also considers opening a small Ghanaian food shop in London, where there’s a large African and Caribbean community. He will partner with a local investor and hire staff to run the store.

Thinking critically, complete the table below to help Soboat make an informed decision on the best option for expansion.

Feature Online Store Physical Store Abroad

Cost Reach (market share) Speed to Start Customer Experience Risk Level Personal Presence Needed Trust Building Answer the following questions based on the case study:

1. Which business model would you choose if you were Soboat? Why?

2. What advice would you give Soboat to succeed in each option?

3. How does technology make international business easier today?

Multinational Corporation

_(A) Multinational Corporation (MNC) is a large company that does business in many different countries.

It usually has its main office (headquarters) in one country (called the home country) but owns factories, stores, or offices in other countries (called host countries). These companies don’t just sell products—they also produce goods, conduct research, advertise, and invest in countries all over the world.

Examples of Multinational Corporations

1. Coca-Cola – Headquartered in the USA but sold in over 200 countries.

2. Samsung – Based in South Korea, with factories and offices across the globe.

3. Unilever – Makes soap, food, and beauty products, and operates in more than 100 countries.

4. MTN- Headquartered in South Africa, and with presence in many African countries, the Middle East and beyond.

Key Features of Multinational Corporations (MNCs)

Multinational corporations have special characteristics that make them different from businesses that only operate domestically. These include:

1. Global Presence

MNCs have offices, factories, or branches in different countries.

Example: Coca-Cola operates in over 200 countries, producing and selling beverages globally.

2. Diverse Markets

They sell products or services in different countries, adjusting them to meet local tastes. Example: McDonald’s offers the McAloo Tikki burger in India to match local vegetarian preferences.

3. Cross-Border Trade and Investment

They trade goods and services between countries and invest money to set up operations abroad. Example: Toyota exports cars from Japan to the U.S. and invests in manufacturing plants in the U.K. and Thailand.

4. Transfer of Resources and Technology

They move money, skills, and technology between their headquarters and foreign branches. Example: Microsoft shares its software technology and management expertise with offices worldwide.

5. Complex Organisational Structure

MNCs have a main parent company that controls various subsidiaries in different countries. Example: Unilever is headquartered in the U.K. and the Netherlands, managing subsidiaries in Africa, Asia, and the Americas.

6. Global Workforce

They employ people from many countries with different skills and cultural backgrounds.

Example: Google’s workforce includes employees from over 150 nationalities.

7. Economies of Scale

They produce in large quantities across multiple locations, lowering costs and offering competitive prices. Example: Apple mass-produces iPhones in China, reducing production costs while maintaining high quality.

8. Brand Recognition

Their products and services are well-known around the world. Example: Nike’s “swoosh” logo is recognised in almost every country.

9. Risk Diversification

By operating in multiple countries, they avoid relying too much on one market.

Example: Nestlé sells food products worldwide, so if sales drop in one country, it can rely on others.

10. Innovation and Research

They invest in new ideas and technology in different countries to stay competitive.

Example: Samsung runs research centres in South Korea, the U.S., and India to develop new electronics.

11. Global Supply Chains

They get materials and parts from different countries to make production more efficient.

Example: Apple sources chips from Taiwan, screens from South Korea, and assembles iPhones in China.

Figure 4.9: Key features of MNCs Summary Multinational corporations (MNCs) use their worldwide presence, resources, and networks to grow, stay competitive, and contribute to the global economy.

Multinational corporations are large global companies that:

1. Work in many countries

2. Sell products worldwide

3. Share knowledge and money between branches

4. Help grow the global economy

5. Face complex challenges due to different rules, cultures, and markets

Activity 4.8 Exploring Multinational Corporations (MNC)

1. Observe the pictures below carefully and answer the questions that follow.

a. Identify the products by their name and brand.

b. Which of these products are made in Ghana?

c. Which of the products are not made in Ghana?

d. Why do we have products from other countries in our shop?

e. Why do you think one company would in many countries?

f. Match these products against their country of origin

2. Record your answers to these questions in your workbook and be prepared to share them as part of a class wide discussion.

3. From your discussion, explain what is meant by a multinational corporation and share your definition with a classmate for feedback.

Learn more about examples of multiple national corporations through the part two of this activity:

4. Pair with a colleague and complete the table below to give a summary profile of five MNCs. You may use digital devices and research examples on the internet to support this activity. The first example has been given as a guide.

SN Names of

Corporation Products Two countries the MNC is found Headquarters 1 MTN Internet, Momo, etc. Ghana, Nigeria South Africa 2 3 Be prepared to share your profiles as part of a class wide discussion.

5. Working with your partner, complete the table below to identify the examples of MNCs based on the logos provided. Include the industry in which each MNC operates.

Name of Corporation Industry Logo

Beverages MTN Group Telecommunications

Oil & Gas Electronics Automobile

Activity 4.9 Key Features of Multinational Corporations (MNC)

1. Working in small groups, discuss the key features of multinational corporations.

Use the table below to organise your ideas.

Feature of MNC Explanation of the feature

2. Share your ideas as part of a class wide discussion on the features of MNCs. Were there features you hadn’t identified? Add to your list as needed.

Recap: A multinational corporation (MNC) is a large company that operates in more than one country. But the question is, “What factors or drivers would motivate a company to want to spread across the world?”

Let us take a look at some simple reasons!

1. To Reach More Customers (Market Expansion)

Companies want to sell their products in more countries to make more money.

Example: KFC started in the USA, but now you can find it in over 150 countries like China, India, and South Africa because people in those countries also love fried chicken!

2. To Get Important Resources

Some companies go international to find things they need—like oil, skilled workers, or advanced machines—that they cannot find in their home country.

Example: TotalEnergies, a company from France, works in Nigeria to extract oil, which it uses to make fuel and energy.

3. Save Money (Cost Reduction)

Businesses sometimes move their factories to countries where it's cheaper to produce goods (maybe because workers are paid less or taxes are lower).

Example: Nike makes most of its shoes in countries like Vietnam because it's cheaper to make them there than in the USA.

4. To Reduce Risk (Diversification of Risk)

If a company only sells in one country, problems like war or economic collapse can destroy it. But if it operates in many countries, it reduces their reliance on a single market.

Example: Toyota sells cars all over the world. So, if people stop buying in Japan, it can still make money from sales in Europe or the USA.

5. To Compete Better (Competitive Advantage): Being global helps companies stay ahead of their rivals and build a strong brand worldwide.

Example: Apple is known all over the world for its phones and computers. This helps it stay ahead of other brands like Huawei and Samsung in many places.

6. To Benefit from Friendly Government Rules Some countries make it easy for foreign businesses to come in by offering tax cuts or fewer rules.

Example: Volkswagen built factories in Mexico because the government made it attractive for foreign investors through trade deals and tax savings.

7. Improved Infrastructure and Technology

Modern technology like the internet, software, and faster transport make it easier for companies to run businesses across the globe.

Example: Amazon uses tools like Zoom and cloud computing to manage workers and warehouses all over the world.

8. Globalisation and Trade Agreements

As countries work more closely together and reduce taxes or trade barriers, it becomes easier for companies to do business internationally.

Example: Nestlé can sell its products easily across Europe thanks to the European Union’s rules that let goods move freely between countries.

Figure 4.10: Factors driving companies to become MNCs

Activity 4.10 Factors Driving Companies Become MNCs

Part 1

1. Your teacher will arrange you in small groups to research one or more of the factors that drive companies to become multinational.

2. You will need to prepare to teach the rest of the class about your allocated driver/s.

3. To do this, you will need to research and be able to:

a. Explain the factor/driver you have been assigned

b. Identify the key points in how it influences international business

c. Give examples from real life companies

4. Think about how you will present and teach your work to the rest of the class.

You could prepare a short presentation, posters or visual aids like pictures or short videos.

5. Be prepared to answer questions from your peers.

6. After your presentation, listen carefully to the other presentations to learn about the other factors driving companies to become multinational companies.

7. Create a mind map linking the factors presented during the lesson.

Part 2

1. Choose one multinational company (e.g., MTN, Apple, Nestlé, Toyota).

2. Use the internet or textbooks to research the company.

3. Find answers to the following questions:

a. Which country is the company from?

b. In which countries does it now operate and their name down?

c. What motivated the company to expand internationally?

d. What benefit has the company gained by going multinational?

4. Write a short report (one page max) explaining your findings.

5. Complete the table below using the first example.

Factor Driving MNC Example or Explanation

Market Expansion

MTN expanded from the South Africa to countries like Ghana, Nigeria, Cote d’Ivoire, etc to provide telecommunication services to new customers and increase its sales and profits.

Access to Resources

Cost Reduction

Diversification of Risk

Competitive Advantage

Favourable Government Policies

Technology Improvements

Trade Agreements

Extended Activity

Think Critically and Apply Knowledge

1. Imagine you are the CEO of a successful Ghanaian business (e.g., a local chocolate company).

2. You want to expand to other countries and become a multinational company.

3. Think critically and answer the following questions (write not more than one page):

a. Which country would you like to expand to first?

b. What are three reasons for wanting to go international?

c. What benefits do you expect to get?

d. What challenges might you face?

4. Share your report with your teacher for feedback.

Multinational Corporations are large companies that operate in many countries around the world. Examples include MTN, Unilever, TotalEnergies, and Coca-Cola.

Benefits of Multinational Corporations MNCs)

Multinational corporations (MNCs) are very important to Ghana and other countries because they contribute greatly to economic growth and development.

Here are some main benefits of MNCs operating in Ghana:

1. Foreign Direct Investment (FDI)

MNCs invest large amounts of money in the countries where they operate. This money supports new businesses, infrastructure, and technology. Example: When Toyota set up an assembly plant in South Africa, it brought millions in investment, boosting the local economy.

2. Job Creation

MNCs create jobs for both skilled and unskilled workers in the countries they operate in. Example: Nestlé employs thousands of people in Ghana in factories, offices, and distribution.

3. Technology Transfer

MNCs share new technologies and management skills with local companies, helping them grow and improve. Example: Vodafone introduced advanced mobile technology in Ghana, which was later adopted by local telecom companies.

4. Market Access

MNCs help local products reach global markets through their networks. Example:

Cocoa produced in Ghana is exported globally through companies like Cadbury and Mars.

5. Infrastructure Development

Some MNCs build infrastructure like roads, ports, and power plants to support their work, which also benefits the country. Example: Mining companies in Ghana have built roads and schools for local communities.

6. Increased Competitiveness

MNCs encourage local companies to improve quality and efficiency to compete.

Example: The entry of Shoprite in Ghana pushed local supermarkets to upgrade their services and facilities.

7. Global Networks

Local suppliers working with MNCs can sell to customers in other countries. Example:

Ghanaian shea butter producers partnered with The Body Shop now supply to markets in Europe and America.

8. Corporate Social Responsibility (CSR)

MNCs often support social projects in the countries they operate in. Example: MTN Ghana funds education programs, scholarships, and health facilities.

9. Government Revenue

MNCs pay taxes, import duties, and other fees that help fund public services. Example:

Mining companies in Ghana contribute millions in taxes, helping finance infrastructure projects.

Figure 4.11: Benefits of MNCs

Challenges of Multinational Corporations

Operating across different countries comes with difficulties. Some of the main challenges are:

1. Cultural Differences

Not understanding local customs can harm relationships with staff and customers.

Example: A foreign restaurant chain in Ghana failed because it didn’t adapt its menu to local tastes.

2. Legal and Regulatory Compliance

Different countries have different laws. Breaking them can lead to fines or damage to reputation. Example: A multinational oil company was fined in Nigeria for violating environmental laws.

3. Political Risks

Government changes or new laws can disrupt business. Example: In Zimbabwe, sudden government land reforms forced many companies to shut down.

4. Currency Fluctuations

Changes in exchange rates can reduce profits. Example: When the Ghana cedi lost value, imported goods became more expensive for multinational retailers.

5. Economic Variability

Recessions or inflation can affect sales. Example: During Ghana’s 2022 inflation spike, foreign companies selling luxury goods saw a drop in demand.

6. Supply Chain Complexity

Problems in one country can affect production everywhere. Example: COVID-19 lockdowns in China delayed shipments for companies worldwide.

7. Ethical and Social Issues

Poor labour practices or environmental harm can damage a company’s image. Example:

Fashion brands faced backlash for using factories with unsafe working conditions in Bangladesh.

8. Talent Management

Finding and keeping skilled workers in different countries can be hard. Example: Many foreign tech companies in Ghana struggle to keep software developers from moving abroad.

9. Communication Barriers

Different time zones and languages make coordination difficult. Example: A European company in Ghana had project delays because of misunderstandings between teams in different countries.

Summary Multinational Corporations are important for global trade and development. They bring money, jobs, skills, and opportunities, but they also face big challenges when working in different countries. Understanding both sides helps us see how they shape the world economy.

Activity 4.11 Reflection on Multinational Corporation

Think about the products you use every day (e.g., your phone, food, clothes, shampoo). Write a short paragraph in your notebook answering:

1. What products do you use that come from multinational companies?

2. How do these products help make your life easier or better?

3. What would your day be like without them?

Activity 4.12 Benefits and Challenges of Multinational Companies

1. Your teacher will split the class into two groups – group A and group B. Each group will be tasked to analyse the benefits or challenges of multinational companies (MNCs).

a. Group A: Analyse the benefits of MNCs

b. Group B: Analyse the challenges of MNCs

2. List your ideas on flip chart paper

3. Come together with all of the other groups who have been assigned the same task and compare your work. Can yo expand your own group’s list?

4. Exchange your work with a group working on the other assignment (benefits or challenges) and review each other’s work, providing constructive feedback.

5. Join together with the whole class to discuss the exercise. Be prepared to answer questions and provide examples to summarise the main benefits and challenges of MNCs.

Extended Activity

1. Research how MTN Ghana, a multinational company, has helped improve communication, money transfer and employment in the country.

Then, write a short report summarising what you found out. You may include the following:

a. Number of jobs created

b. Support for education or health

c. How it has improved communication

2. Create a simple, colourful poster that shows at least five benefits of multinational corporations.

a. Use drawings, symbols, or magazine cutouts to make it creative.

b. Label each part of your poster clearly.

c. Present your poster to your colleague or teacher for feedback.

3. Copy and match each challenge of multinational corporations to the correct

example using arrow.

This lesson will help you understand what indigenous Ghanaian businesses are, how they work, and why they are important to Ghana. As you go through the lesson, try to think of examples from your area or ones you’ve seen in the news or online.

What Are Indigenous Ghanaian Businesses?

Indigenous Ghanaian businesses are those that are started, owned, and run by Ghanaians.

These businesses often use local materials, reflect Ghanaian culture, and focus on serving people in Ghana. They help create jobs, grow the economy, and preserve our way of life.

Examples of Indigenous Ghanaian Businesses

₁. Kasapreko Company Limited: Makes drinks like Alomo Bitters and Storm Energy Drink using local herbs. Competes with big international brands.

2. Kantanka Group: Makes Ghana-made cars and electronics. Promotes African inventions.

3. Pizzaman-Chickenman: Fast food company started by young Ghanaians. Adds Ghanaian taste to popular food.

4. Ernest Chemists: Produces and sells affordable medicine for Ghanaians.

5. Despite Group of Companies: Owns Peace FM, UTV and processes food like Neat Fufu.

Very influential in media and business.

6. Sava Shea Company: Makes and exports shea butter products. Mostly led by women in Northern Ghana.

7. Atibire Farms: Rears guinea fowls and processes them. Based in Bolgatanga.

Key Features of Indigenous Ghanaian Businesses

₁. Ghanaian Ownership: They are owned and controlled by Ghanaians.

2. Local Management: Ghanaians run and make decisions for these businesses.

3. Cultural Relevance: They use Ghanaian customs, language, and values in how they work.

4. Supports the Local Economy: They create jobs and help the country grow.

5. Serve Local Markets: Their focus is the Ghanaian market, though some also sell outside the country.

6. Use of Local Resources: They use Ghana’s natural products like cocoa, cassava, herbs, and labour.

Importance of Indigenous Ghanaian Businesses

1. Job Creation

Indigenous Ghanaian businesses provide many job opportunities for local people. This helps reduce unemployment, especially among young people and women, by offering work in areas like farming, trading, manufacturing, and services. Example: A local cocoa processing company in Kumasi employs over 200 workers, most of whom are from nearby communities.

2. Economic Growth

These businesses boost Ghana’s economy by producing goods and services locally.

Because they are owned by Ghanaians, most of the profits remain in the country and help improve the national economy. Example: A Ghanaian-owned construction company reinvests its profits into building more projects in Accra and other regions, creating more income and jobs.

3. Promotion of Local Culture and Products

Many indigenous businesses use Ghanaian culture, languages, and traditions in their products and branding. This helps preserve the country’s identity and encourages pride in local goods and services. Example: A fashion brand in Accra designs clothes using Kente and Batik fabrics, promoting Ghana’s cultural heritage.

4. Support for Rural and Community Development

Indigenous businesses often operate in rural areas, where they provide jobs and support community development. They may help build schools, clinics, or sponsor local events, improving the quality of life. Example: A shea butter cooperative in Northern Ghana helps fund a local clinic and provides school supplies for children.

5. Utilisation of Local Resources

These businesses make effective use of Ghana’s natural resources such as cocoa, shea nuts, cassava, and timber. This reduces the need for imports and helps the country become more self-sufficient. Example: A cassava processing factory in the Eastern Region produces gari and starch for both local and export markets.

6. Encouragement of Entrepreneurship

Seeing successful Ghanaian-owned businesses inspires others to start their own.

This builds confidence and encourages innovation, especially among young people.

Example: A young entrepreneur starts a fruit juice company after being inspired by a locally owned beverage brand.

7. Contribution to Government Revenue

Indigenous businesses pay taxes to the government, which are used to build roads, schools, hospitals, and other essential services. Example: A locally owned transport company pays annual taxes that help fund public road repairs in its operating regions.

8. Resilience and Adaptability

Because indigenous businesses understand the local market, they can adapt quickly to changes in the economy. They often have loyal customers and community trust, which helps them survive during hard times. Example: A local grocery store adjusts its stock and prices during an economic downturn to keep serving its customers affordably.

Activity 4.13 Indigenous Ghanaian Business and Their Key Features

1. In pairs, identify businesses you know that are solely owned by Ghanaians

2. Which of the businesses you identified is focused on the Ghanaian market and uses the local resources for production?

3. Come up with the draft meaning of indigenous Ghanaian businesses with examples

4. In your pair, discuss the key features of an indigenous Ghanaian business and share with other pairs for feedback.

Activity 4.14 Importance of Indigenous Ghanaian Businesses

Part 1

1. With a partner, discuss the importance of indigenous Ghanaian businesses.

Answer the following questions as part of your discussion:

a. Why are indigenous businesses important to Ghana’s economy?

b. What the benefits of local businesses growing and thriving?

2. Share the outcomes of your discussion with the class.

Part 2

1. For each of the indigenous business scenarios listed on the left, match the corresponding benefit/s.

2. Share your answers with a colleague and justify your choices.

You will now look at the steps and strategies indigenous businesses might take to become multinational.

Steps for Ghanaian Companies to Become

Multinational Corporations

1. Conduct Market Research and Analysis (study how that business is done in other countries). Before entering a new country, a business must learn:

a. what people in that country need or want

b. what the laws are

c. who their competitors are

d. if people will want to buy their product This helps them choose the right country to do business in.

2. Develop an International Business Plan. Once a country is chosen, the company needs a good plan. This plan should explain:

a. what they want to achieve

b. how they will sell and price their products

c. how they will advertise

d. how many people they will hire

e. where the money will come from

3. Choose a method of entry. There are different ways to start a business in another country. Among them are:

a. exporting: Selling your products from Ghana to the new country.

b. licensing/Franchising: Let someone else in the new country use your brand or product.

c. joint Venture: Work together with a business in the new country.

d. subsidiary: Open a branch or office in the new country that you fully own.

4. Register and follow local laws. The company must register with the government in the new country. They must follow all business, tax, and legal rules. This helps them stay out of trouble and build trust.

5. Hire and train workers. Multinational companies usually hire people from both Ghana and the new country. They must train them so everyone understands how the company works and what it stands for.

6. Change products to fit local needs. To be successful, a business may need to:

a. change how the product looks or tastes.

b. translate labels or advertisements.

c. adjust the service to match the local culture.

7. Build good partnership and networks. The company must work well with:

• local suppliers

• the government

• the community This helps them grow and earn respect.

8. Continuously innovate and adapt. The company must keep learning, improving, and adapting. They should stay updated with new technology and market trends to remain successful.

Strategies for Ghanaian Companies to Become

Multinational Corporations

Before making the move to operate over multiple countries, companies should ensure they:

1. Build a Strong Local Business First: Start strong in Ghana first. Before going global, a company must:

a. offer quality products.

b. build a strong brand.

c. manage their business well.

Success at home is the first step to success abroad.

2. Think Globally: The company must:

a. think beyond Ghana

b. learn about other countries and cultures.

c. be open to change and new ideas.

d. respect diverse ways of doing business.

3. Improve Branding and Packaging: Products must look attractive and professional.

Attractive packaging helps gain customer trust in other countries.

4. Utilise technology and e-commerce: Businesses can sell products online through:

a. websites

b. social media

c. e-commerce platforms like Jumia or Amazon This helps them reach international customers without opening a shop abroad.

5. Get Help from Government Agencies: Groups like GEPA (Ghana Export Promotion Authority) and GIPC (Ghana Investment Promotion Centre) can help with training, money, and advice for doing business in other countries.

6. Use the AfCFTA Agreement: The African Continental Free Trade Area (AfCFTA) makes it easier and cheaper to trade across Africa. This helps Ghanaian businesses grow across the continent.

7. Form Partnerships: Working with businesses in other countries helps Ghanaian companies:

• Sharing ideas and costs

• Learn more about the new market.

• Grow faster.

8. Adjust Products for Different Countries: Companies must understand foreign customers and make changes when needed. For example, a food business may change ingredients or labels to fit the local taste or law.

Activity 4.15 A Case Study of Kasapreko

Introduction: What is Kasapreko?

Kasapreko Company Limited is a Ghanaian-owned beverage company. It started in 1989 in Accra. The company is best known for making drinks like Alomo Bitters, a herbal alcoholic drink. Today, Kasapreko is one of the leading drink manufacturers in Africa and sells its products in over 15 countries including Nigeria, South Africa, UK, and the USA.

Steps Kasapreko Took to Become a Multinational Corporation

1. Built a Strong Local Business First: Kasapreko started small and focused on producing quality herbal drinks using local herbs and ingredients. It became popular in Ghana because its products matched local taste and preferences. They built trust and a strong brand in the local market.

2. Studied Other Markets: Before entering new countries, Kasapreko researched customer tastes, cultural habits, and alcohol laws in those countries. They found out that many people in West Africa liked herbal-based drinks for health reasons.

3. Created an International Business Plan: Kasapreko planned how to reach customers in other countries. The plan included pricing, distribution, advertising, and partnerships. They started by exporting their drinks to nearby African countries.

4. Chose Different Market Entry Methods:

Exporting: Kasapreko started by shipping its products to other African countries.

Joint Ventures: In Nigeria, they partnered with local companies to distribute drinks.

Subsidiaries: Later, they set up offices and plants in some countries to handle their own operations.

5. Registered and Followed Local Laws: The company made sure to register legally and follow alcohol regulations and health standards in each country.

6. Adapted Products to Suit Local Preferences: In some countries, they changed the packaging or made non-alcoholic versions of their drinks to suit the market. They also designed labels in local languages to connect with customers.

7. Hired and Trained Local Workers: Kasapreko hired both Ghanaian and local staff in the countries where they expanded. They trained all workers to understand the company’s values and way of doing business.

8. Used Technology and Innovation: Kasapreko invested in modern equipment and production technology to increase quality and output. They built a large modern factory in Ghana to serve both local and foreign markets.

9. Promoted Their Brand Globally: Kasapreko used social media, TV ads, and cultural events to promote its drinks internationally. They took part in international trade shows to attract new customers and partners.

Strategies Kasapreko used to go global Strategy What They Did Strong Local Base Became successful in Ghana first Global Mindset Studied other countries’ needs and cultures Attractive Branding Improved labels and bottles to appeal internationally Online Marketing Used the internet and trade shows to market globally Government Support Worked with export and trade agencies for support Partnerships Partnered with local businesses in foreign markets Adapted Products Adjusted drinks and packaging to meet local tastes and laws Engage in a discussion with your peers to answer the following questions:

1. What are three key steps Kasapreko took to become a multinational company?

2. Which two strategies helped Kasapreko succeed in foreign countries? Explain why.

3. Imagine you own a Ghanaian shea butter company. What steps would you take to sell your product in South Africa?

Activity 4.16 From Local to Global

1. Your teacher will arrange you in small groups of no more than five to work on a mini project entitled “From local to global: the case of Ghanaian business”.

2. As a group, identify a real of fictional Ghanaian business (e.g a shea butter company looking to sell their products in South Africa).

3. Describe your company’s current operations, its strengths and the challenges it faces

4. Propose clear steps the company could take to become multinational

5. Outline strategies the company could adopt to succeed globally.

6. Prepare a presentation on your case study and share it with the wider class for discussion and feedback.

1. Describe how improved transportation and advanced technology can drive globalisation.

2. Explain three reasons why businesses choose to operate in international markets.

3. Explain four features of multinational companies.