Question

An American company is considering entering into a joint venture with a firm in another country (please select another country of your choice). Describe what cultural and accounting practice differences each party should consider and explain why. (china has been used already)

Answer 1

The American company is going into venture deal with an Indian company, then it have to look after the following cultural and financial factors:-

A. Being a country with divergent form of cultures and religions the American company must look into the different cultures prevailing in that country before entering into a contract.

B. In financial terms the company must look into the different accounting practices it have to follow and what accounting codes and principles are followed in that country.

C. Also the company must look into the banking sector position in that country as of what is the interest rate policy I is there. And if the loans are easily available or not.

D. A company must indulge itself in producing such kind of products or services which I'm no terms hurts the sentiments of any religion otherwise all their efforts will go in vain .