countries that require partial or even majority ownership by a local national. Other requirements that the site selection team at Brighton developed include:
The need for sufficient disposable income to make this type of retail business venture profitable
The population must be sufficiently concentrated that there is sufficient demand at this single retail location
Here is a partial list of the questions Brighton must know about Beijing, Mexico City and London:
Can the retail store be leased or must it be purchased?
What is considered to be the prime location for a high end retail establishment?
What are the risks and benefits of leasing or buying a retail store?
How do consumer tastes differ from consumer preferences in the United States?
Assuming that initially Brighton will have only limited knowledge of consumer preferences, what products will the store keep in stock and how much inventory will be kept on hand?
How much disposable income does the average citizen have?
What is the most effective way for Brighton to advertise to its target market?
Who will be Brighton's biggest competitors?
How successful have they been so far?
How long have they been in business?
What is the local reaction likely to be of an American company opening a retail store in the city selected?
What restrictions, if any, are there on imports?
What restrictions are their on repatriating profits back to the United States?
What taxes and duties are applied to the imports the store will need from Brighton's U.S. manufacturing facility?
What taxes, duties and fees will Brighton be required to pay?
According to Warren Keegan in his book Global Marketing Management (1998), nations have the right to control the international transfer of wealth. Countries interested in encouraging foreign direct investment have few restrictions on the repatriation of profits on foreign owned businesses. Less enlightened cou...