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Unit 6

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Unit 6 Assignment

Lissete Duran-Pereira
May 29, 2015
Kaplan University
MT220-01: Global Business

Here at Zip 6 we are continuously looking for new areas throughout the world to increase our global presence. We have been recently approach by a Jordanian soft drink manufacturer that is smaller in size and has no experience in the global market. This manufacturer is said to have ties to the Jordanian Royal family. Although the “ties” have not been defined in the proposal I believe this should be investigated to fully understand the relationship with the royal family. As Ravi is a person of Iranian descent, he feels that it would be a benefit to create jobs and provide financial stability to the economy. In my researches of the Lebanese economy I have found out that they run a free market economy with a strong laissez-faire commercial tradition. I have uncovered some issues that may pose a threat for the global image of the Zip 6 organization. This area suffers from corruption, arbitrary licensing decisions, complex customs procedures, high taxes and tariffs, and finally weak intellectual property rights. Some of these issues that I see with the current state of the economy could be something that is discharged because of the ties with the royal family. As a world leader in soft drink manufacturing, I believe that these economic risks are a potential threat to the Zip 6 organization. One issue that I see as a huge problem is the weak intellectual property rights they have in this country. Who is to say that if Zip 6 chose to manufacture here that our patent on the soft drink would remain confidential? After all my research in the Jordanian manufacturer, I have come to the conclusion that there are too many possible risks that would pose a problem to the Zip 6 organization. My main decision comes from the weak intellectual property rights the country has. We do not want the patented soft drink formula out on the open market. It is in our best interest to walk away from this deal and keep our options clear for the next Zip 6 location.

Reference
The World Factbook 2013-14. Washington, DC: Central Intelligence Agency, 2013 .

https://www.cia.gov/library/publications/the-world-factbook/index.html

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