The decision to enter into a direct foreign investment was made on the basis that the Wilson Corporation wanted to maintain controlling interest over operations, avoid transport costs and trade restrictions. This also allowed for a long-term investment that w

In researching which corporation to establish a joint venture, Wilson Corp. decided that Aramex Distribution Co. was the ideal choice because of its established reputation for superior distribution. It also was the first Arabian Corporation to be on the NASDAQ and has been established for 18 years. Aramex distribution Co. has a solid management staff, which helped generate over $100 million in sales in 2000. A joint venture is critical for Wilson Corporation because it not only alleviates the burden of distribution cost and concerns but also gains the knowledge and expertise in host country business practices. The knowledge and expertise shall prove invaluable in developing and maintaining market shares.

If Saudi Arabia were in the United States it would probably be located in Texas. Texas is known for its hospitality, and that is exactly what a Saudi does very well. Arab people hold respect very high, and this shows both in business and social settings. Arabs traditionally use their right hand for all public functions, shaking hands, eating, drinking, and passing objects to another person. Another thing that Americans need to remember is not to point the sole of our shoe to the individual we are speaking to. It is considered very impolite and disrespectful. Instead of asking about a man?s wife and daughters, one should ask about their family and children. When tea and coffee are served, it could be considered impolite not to take at least one cup. When one is finished, simply oscillate the cup to signal that a refill is not needed. Today?s businesswoman would have a tough time dealing with the Saudis; there is gender separation in the Kingdom. Women are to dress very conservatively; long skirts, sleeves at elbow length or longer, and necklines that are unrevealing are just the bare minimum there. It is very uncommon for a Muslim to shake hands or engage in a conversation with a woman, although many Saudis who have experience with Americans have been inclined to do so (U.S. Saudi Arabian Business 15-16).

In order to figure out the cost of the bottled water various aspects must be taken into consideration. Certain parts taken into consideration were the initial start up cost, labor materials, taxes, and competition. The startup cost in Saudi Arabia is going to be 2.6 million or 9,750,000 SR (See Appendix B). The Blue Myraj Company has also shopped around tremendously in order to keep down the cost of plastic and water. The company has three different types of packaging for the distribution of water. The cost associated with the packaging is not high. For example, if you notice on Appendix A the small bottle cost 63.75 SR per 100 units of plastic bottles. The water of the 100 units of bottles cost 116.25 SR giving the Myraj Company a total cost of 180 SR or 1.8 SR (equal to $.13) per bottle.

Going back to the labor force, Islamic law is the overall rule when it comes to the hiring and length of time of employment. As for being sued, that can and will happen in Saudi courts and the Saudi council is the law, the United States laws do not apply there. If an employee is fired for a wrongful reason, that employee has the opportunity to sue our company (5).

In order to accomplish this task with approved Saudi Arabian government support, a j

Some topics in this essay:
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