Globalization case Study Example | Topics and Well Written Essays - 500 words

Globalization - Case Study Example However, this assumption is not true as the social dynamics witnessed in Tunisia has revolutionized this conservative thought and new behaviors have been adopted. As at 2013, 32% of the whole population of Tunisia had taken alcohol by 40 years and this implies that the few existing factories cannot sufficiently meet the existing demand (Angel-Urdinola, 2015, p.112). The company seeks to use this entry market strategy so as to sell its wine and spirits products owing to the cultural and political environment in Tunisia may not be that favorable to set a manufacturing company at the moment. The country is, in most cases, marred with constant violence and interreligious wars animosity (Angel-Urdinola et al., 2015, p.67). The deep-rooted Arabic culture and language may not also favor foreigners who have little or no mastery of this environment. It is, therefore, advantageous if the manufacturing industry is set in a different country and goods supplied to consumers through intermediaries based in Tunisia who understand the diversities of the local market. This strategy will largely help to solve the global local dilemmas that the country is likely to face such as cultural issues, language barriers, lack of raw materials and political interferences among others as the intermediaries are able to come in between the producer and the consumer and facilitate free flow of the products. The agents are able to effectively inform both the buyer and the exporter about issues concerning the products based on first-hand research (Hisrich, 2010, p.98). Tunisia’s policies on trade instruments such as tariffs, quotas and taxes among others simplify the business process. There are limited stringent rules that block foreign investors as the government encourages international investment to promote the economy. There are no meaningful barriers to market