So a joint venture was being considered in which neither partner was revealing to the other its own objectives. This sounds more like competition than cooperation.

For a large number of western companies wishing to do business in Asia, the joint venture is a method imposed, rather than an ideal solution. It could be government legislation in the host country. It could be insufficient investment funds. It could be fundamental ignorance of the market. More ventures are proposed under these kinds of conditions than in a genuine search for a partner with whom to share an opportunity.

Nevertheless, a joint venture should always be played as a team game if it is to succeed and the opposing teams are your competitors not your partners?

So much has been written about cultural differences that, by now, it might be expected that greater understanding should exist everywhere. Unfortunately, the same mistakes are still being made.

Australians think that because they are casual, more easy-going people, Asians like them better. Then the slap Chinese on the back, drink beer in the office in a Muslim country... and wonder why there is a conflict.

Americans want to get in there, negotiate the contract and get out again. It's quick, it's clean and it's easy. It just isn't Asian.

Some European nationals still seem to have a view originating in colonial times, that some nations, particularly in Southeast Asia, owe a debt of gratitude to Europe.

No one in the west likes the fact that the Japanese have more money and better technology than anyone else these days and, therefore, seem to dominate world thinking. Just like the U.S. a generation ago or Europe a century and a half ago.

But the requirement for understanding is a two-way street.

Western companies use facsimile machines when they want an urgent reply. If an Asian does not respond, even with an acknowledgment, this cause frustration and resentment in the mind of the sender.

Squeezing the last drop of discount out on a business deal is not in itself considered praiseworthy by many business people in the west. Judgment on price alone can be a fatal error in some fields.

If an overseas partner provides the technology, it makes sense that they also provide the talent to manage it. If a "figurehead" chairman has to be appointed, it is better that he clearly understands his role.

Perhaps most important of all, if an Asian group enters a joint venture with very successful western partner, they should find out exactly what expertise has contributed to this success and try to facilitate conditions locally which will enable this expertise to flourish.

Central to the success of any joint venture, whatever the nationality of the partners, is sensitivity and understanding. If you do not know enough about the culture, attitudes and business methods of a potential partner, find out from someone who does before you get down to negotiate.

Ramesh C. Manghirmalani                                                                  Brand Name Selection:
Chief Corporate Strategist and Managing Partner                            An Approach
Global Markets Limited

The marketing scientists have studied the psychology of branding a product. They have discovered the qualities a name should possess for greater effectiveness. This paper attempts to search for a realistic and rational operational basis for the art of brand naming. It presents an approach to the formulation of the name suitable for a product and to the selection of the most suitable from amongst the various alternatives on hand.

Brand naming is a term of language by which the consumers, producers, shopkeepers and all those concerned with the product can communicate with each other in connection with the product. A name is intended to reflect the personality of the product, and it is from the name on the first instance a consumer tries to paint a picture of the product. Thus a name that has been carefully chosen, keeping in view the type of image the producer wants the consumer to have, can be an asset, and a name that has been haphazardly chosen can be a liability.

A name should be checked for the following qualities from the consumer point of view.

A. Associational value of a name: (a) The extent to which the consumer associates the name with the quality; (b) The extent to which he feels from the name that the product will satisfy an actual need; (c) The extent to which he associates the name with pleasant things.

B. Memorizational value of a name: (a) The extent to which the name is easy to spell; (b) The extent to which the name can be associated with words in common use, so that remembering the name gets easy; (c) The extent to which it attracts attention.

C. Descriptional value of a name: (a) The extent to which it tells about the product; (b) The extent to which it lays stress on those constituents or characteristics of the product which are to be impressed on the buyer.

D. Repurchase value of a name: A consumer goes in for repurchase only when the product justifies the expectation raised in his mind. Unjustified expectations would lead to disappointment with the purchase of even a sense of having been cheated.

E. Motivational/promotional value of a name: (a) Degree of reliability it creates; (b) Degree of exclusiveness it connotes; (c) Degree of desirability it develops for the product.

The art of brand naming can be given a scientific base. We have seen that a brand name should be checked for certain qualities. The task of systemizing the choice of a brand name calls for more than knowledge of these qualities. What is required is to develop a systematic base for useful and realistic evaluation of different suggestions for adaptation. For a rational decision in this regard a mathematical approach has limited application. Therefore, we suggest an ‘audit' cum ‘mathematical' approach. The major steps in this process are presented here.

A marketing executive should first lay out the objectives he wants to fulfill through the name that he is trying to design. For this he should prepare lists of checkpoints using the Jackson Martindell's method. It may be broadly classified on the basis of certain recognized values.

Associational value: (a) Pick upon the qualities of the product, the association of the name to which are likely to increase the sales; (b) List the satisfactions that the consumer wants to achieve through the product. Caution: the product is meant to serve a target audience of potential customers; thus, only those satisfactions should be listed which are desired by the audience. The satisfactions should be listed in order of priorities; (c)Now prepare a combined list of the desirable qualities and satisfactions and list them in order of priorities.

 It should be remembered that consumers with a preference for, say, a certain attribute can overlap the consumers desiring another attribute. This means that the combined market share of one attribute and another will not be the cumulative of the market shares of both but something less. The attributes should be listed in a descending manner so that as one goes down the list, the cumulative market share of the attributes increases. Also, the overlapping of the set of consumers of attribute A with that of attribute B should be less than that of the set of consumers with attribute C with that of attribute B or A. The same thing should be true of attribute D (as that of attribute C) in regard to consumers of attribute A, B and C, and so on.

Memorization value: List the words to which the name can be made to resemble in rhyme, meaning, etc. and which are in common use by the target audience of potential consumers.

Descriptional value: Follow the same procedure as laid down under the heading associational value. List the product qualities that need to be described according to consumer preferences. Also, include those qualities which are preferred by the target audience and are present in the product but are missing in competitive products.

Motivational Value: Follow the same procedure as above and list the product qualities that would motivate the consumers to make the purchase. Against each product quality indicate the proportion of potential consumers that are motivated by it. Also list the factors which, if developed in the product, would motivate purchase.

Repurchase Value: If the name is checked against the checkpoints prepared for associational value, memorizational value, descriptional value, and motivational value, it will by itself contain the required repurchase value. Hence, no separate list of checkpoints is required. For the same reason, the foregoing procedure will take into account only the first four values.

The next step is to search for possible names that can be given to the product. Such names are listed that fulfill the objectives laid down in Step I, i.e., they contain the required values. A great deal of creative imagination is required for this job. An attempt has to be made to formulate such names that contain all the required qualities. At this stage, primary emphasis is on the required values the name has to contain; the objective evaluation comes later.

A proforma of the rating scales for all the four values can now be drawn. Now a representative sample of the potential consumers is picked up and is given a series of tests.

Associational Value Tests: The names formulated in Step II are haphazardly arranged and listed on one side and the qualities or attributes laid down in the list of checkpoints for associational value in Step I along with other product attributes are listed in a random manner on the other side. The participants are then asked to associate names with attributes.

In this manner the extent of relationship of a name with the attributes of the associational value can be determined. Ratings are then allotted to these names on the associational value scale. The judgment is based on the comparison of the results of the associational test, with the list of checkpoints prepared in Step I under the head associational value. If the test indicates that a name has been exactly associated with the attributes of checkpoints, it would represent the highest degree of association the name has with these attributes. This particular name would then be allotted a rating in between 80 and 100. It should be noted that the ratings allotted to different names have to be relative in nature.

Memorizational Value Tests: Brand names listed in Step II after being properly shuffled with such similar names and related names (shuffling is done to reduce the error that might creep in because of the association of the names with each other) are listed and then given to the participants for a specific time. They are asked to read them over, again and again, say 5 to 10 times. Then another list of names containing the names for the product in the first list shuffled along with other similar names, i.e., similar in spelling and rhyme, etc., is given to the participants. They are then asked to locate the names of the first list. In this way, the names can be allotted ratings on the memorizational value scale.

Descriptional Value Tests: The list of names is given to the participants. Each participant is then asked to list under each name a few attributes that he thinks the product with that name may contain. The attributes listed by the participants are then checked against the checkpoints prepared under the heading Descriptional Value in Step I. Ratings are then allotted to the different names on the descriptional value scale in a similar manner as they are done for associational values.

Motivational Value Tests: Names formulated in Step II are listed on one side after shuffling them with a few other names that are not being considered. Purchase motivators that are listed under checkpoints prepared under the heading motivational value in Step I, are shuffled up with non-motivators and listed on the other side. The participants are then asked to associate the names with the purchase motivators, there being no restriction to the number of purchase motivators that may be linked with a name and the number of times a purchase motivator may be used. After having done this on the basis of the results obtained and with the help of checkpoints for motivational value, ratings can be allotted to the names on the motivational value scale.

The marketing potency of a name depends on the four values that have been discussed above in the preceding step. A simple mathematical expression can be formulated. The marketing potency of a name or the extent to which the name helps in capturing the market is assumed to be a unction of a multiplicative relationship among the four variables - multiplicative because the reduction of any of the four variables to zero would sharply bring down the marketing potency of the name. In this general formula equal weights have been assigned to all the four values; however, in practices, at times it is possible to assign different weights to the four values. It may be considered that the marketing potency of a name depends two times more on its descriptional value than on the other values, i.e., description of the product is two times more important to be present in the name than the association and motivation the name provides and also the ease with which it can be memorized. Then, it is assigned a weight of two units. At the time of determining the marketing potency the ratings for this value will have to be divided by 2 to give the desired weightage to it.

A three dimensional graphic representation can be made to show the extent of different values each name has and to eliminate the undesirable names from among the desirable ones. The graphic representation consists of 3 axises all perpendicular to each other, two lying in the horizontal scale and one in the vertical scale. The two variables, associational value and memorizational are represented on the horizontal axis and the descriptional value is represented on the vertical axis. After ratings for a name have been plotted on the associational and memorizational value axises, its rating on the descriptional value axis helps in assigning the name a position in the space. The rating for the motivational value of the name is indicated in parenthesis. Positions are located for all the names on this three dimensional graph.

Three planes are then made to divide this three dimensional brick resulting into 8 quadrants. A horizontal plane is drawn so that half the names lie above the plane and half below the plane. A 2nd plane, which is vertical and parallel to the associational value axis is drawn so that half names lie on one side of the plane and half on the other side. A 3rd plane, vertical but parallel to the memorizational value axis is drawn in a similar fashion. This process gives rise to 8 quadrants. The upper right hand quadrant farthest from the memorization value axis (quadrant 1) will have those names which are more desirable than those in other quadrants.

The 4th rating on the motivational value scale should be indicated in parenthesis. This is indicated in parenthesis because if the name has the other three desired values it would contain some motivational value too; however, this is not true of the other values. Names falling in the upper right hand quadrant farthest from the memorizational value axis can be compared with each other, their ratings for motivational value too can be compared.

If there are a large number of names lying in quadrant I, further elimination of undesirable names can be done. Divide quadrant one into still smaller quadrants. This is done by using the same procedure. This means that quadrant I is divided by 3 planes to give rise to 8 mini-quadrants. The inception of planes to bring about division of quadrant I is done in a similar manner as that followed for dividing the whole graph. This would give rise to another quadrant I which would contain a still smaller number of names. Thus it would be easy to make a choice from among these names.

Research on this paper was completed at the following institutes:

1. University of California, Berkeley, California

2. University of California, Los Angeles, California

3. Stanford University, Stanford, California

4. International Chamber of Commerce, Paris, France

5. University of San Francisco, San Francisco, California

6. Harvard Business School, Cambridge, Massachusetts
 
For more information contact:
              Ramesh C. Manghirmalani
              230 Powhattan Ct.
              Danville, CA. 94526
              TEL 1 925 735 0388
              FAX 1 925 735 6434 & 1 925 735 7998
              EMAIL: RAMESHPV@PACBELL.NET
              HTTP://HOME.PACBELL.NET/RAMESHPV/RAMESHPAGE1.HTM
 

    During the last decade or so, there has been a trend in business for firms to fail to become active in international trade primarily because of slowly expanding domestic markets.  This trend is especially alarming to small U.S. businesses, less than 10 percent of which are actively involved in international trade despite reportedly having export potential.  Nonexporters often say that their lack of international marketing knowledge and "perceived barriers" (such as understanding foreign business practices) as obstacles to their pursuit of foreign trade (Yaprak 1985).  Despite the numerous programs available to assist managers with the technical aspects of international trade (for example, the International Trade Administration of the U.S. Department of Commerce), many owner-managers' worries and fears stemming from "perceived barriers' go unattended, representing a real turnoff for small businesses to export (Joynt and Welch 1985).
     One "perceived barrier" that has received much recent attention from both the popular press and researchers is the difficult ethical problems that international trade may pose.  Such problems appear to be a "perceived barrier," in that many U.S. marketers report they tend to avoid foreign markets where they expect to encounter ethical dilemmas (Mayo et al. 1990).  This "perceived barrier" may have a strong negative impact on the foreign trade intentions of small businesses, given that many have limited resources (such as having no legal or public relations specialists on staff) to wrestle with such ethical dilemmas (Ward 1987).
     Avoidance is only one of several options that small businesses may employ to cope with ethical problems.  By including ethics in the strategic planning process and/or by developing codes of conduct, for example, small business managers may be able to anticipate and work through the ethical problems posed by some foreign markets (Robin and Reidenbach 1987).  The success of such an approach, however, may partially depend upon how ethical concepts and problems are defined.  Small businesses are more likely to implement codes and strategies where operational definitions of ethical concepts and problems have been developed (Ward 1987).  A detailed listing of the type of ethical problems that might be encountered in international trade by small businesses, however, is currently not available.  The sparse attention given to the ethical problems encountered by small businesses may have resulted from researchers' just assuming that ethical problems act equally upon firms of all shapes and sizes.  This assumption may be misleading in that the type and impact of ethical problems may be different for small and large businesses (Longenecker et al. 1989).
     Eight issues actually pose the most difficult ethical or moral problems encountered in international marketing are as follows: (1) Bribery, (2) Government interference, (3) Customs clearance, (4) Transfer of funds, (5) Cultural/business differences, (6) Technology/copyright theft, (7) Pricing, (8) Immoral entertainment, and (9)  Product use.  (Ward, 1987),(Robin & Redienbach, 1987).
     Evidently, the impact on the firm and its management team is somewhat dependent upon the ethical problem in question.  For example, it has been reported that overseas competitiveness is restricted to a greater extent when the ethical problem is bribery or political issues/ government interference compared to the other types of problems.  (Ward, 1987).
    One of the reasons that first-time exporters fail in their efforts to enter international trade is their inability to understand and adapt to foreign cultural and business practices.  This failure may be partly due to the strong ethnocentric (based on ethnicity) orientation of some managers as well as their lack of training in arbitrating social conflicts in a multinational setting (Ward 1987.)  Additionally, small businesses themselves may be partially to blame when the management team fails to make a commitment to overcome the initial cultural and business practice differences and to solve the ethical problems often found in international marketing.
     An initial step in managing the various ethical problems seems to involve examining the type of problems that exporters active in international trade actually encounter.  Analysis of the impact of these ethical problems on the firm and its management team would not be complete without examining how the structure, limited resources, and orientation of small business influences marketers' ability to manage such problems. Relative to large firms, small businesses appear more profit-oriented and tolerant of unethical practices when their financial welfare is at stake (Longenecker et al. 1989).  By implication, small firms (especially those
experiencing financial difficulties) should recognize their susceptibility to some of the ethical problems I previously listed.  This susceptibility, plus the less formal management structure and monitoring systems of many small firms, would appear to make the payment of bribes, the alteration of customs documentation, and the illegal transfer of funds more difficult to detect. In terms of organizational resources, small businesses often do not have specialists (such as public relations personnel, lobbyists, etc.) to wrestle with ethical problems and, consequently, may be unable to contend with political issues and government interference which can impede foreign trade.  (Mayo, 1990).
     From all of this, it appears that some organizational elements of small businesses may be an make it difficult to cope with marketing's ethical problems. Additionally, management's inability to reliably identify business problems with moral implications may be another obstacle in coping with ethical problems.  Small business managers appear to have a wide-ranging definition of ethics and tend to include practices which present problems in conducting business overseas, but which, in themselves, are unlikely to pose an ethical issue.
     Apparently, small business professionals need not wait, however, until a language of business ethics is developed to address ethical problems that may confront their firms.  Chittipeddi (1987) has suggested managers begin to integrate ethics into decision making by first identifying the ethical problems that might develop between the firm and its relevant stakeholders.  Chittipeddi then recommends that managers consider the ethical merits of the various means to resolve each ethical dilemma that has been identified.  "Ethical" solutions are those business decisions that "lead to a net positive value to the affected stakeholders."  (Chittipeddi 1987). It is important to note that such an analysis does not identify "the optimal ethical solution" but rather a range of business decisions deemed to be ethical.  Although each business decision may represent a "net positive value," the impact on various stakeholders will vary across solutions.  (Chittipeddi 1987)/  The final solution chosen in a small business to resolve an ethical dilemma often reflects the values and personality of its owner-manager.
     As managers develop administrative policies around the problems associated with various stakeholders important to the firm, a "code of ethics" is constructed.  Codes constructed in this manner provide managers with slim definitions of ethical responsibilities and encourage them to include ethical criteria in their decision making.  Additionally, top management's' involvement in code construction and any later revisions helps to put more ethics into the corporate culture.
    Although the impact on the firm and its management team depended somewhat upon the ethical problem in question, overall, small business managers are usually more concerned about how ethical problems might hurt the domestic image of the firm than about how such problems might restrict competitiveness in overseas markets. (Glawdwin & Walters 1990).  Joynt & Welch (1985) also noted that concern about negative publicity with both the general public and in the business community) resulting from engaging in unethical practices was an important factor in promoting ethical conduct by small business managers.  The loss of public esteem which results from media coverage of questionable corporate activities in international commerce is also causing many small firms to develop ethical codes of conduct.
     As small businesses "work through" ethical problems they may come to realize some of the advantages associated with foreign trade (such as expanding their customer base, extending product life cycles, etc.) and to recognize the strengths they possess to compete internationally (such as being more responsive to market niches, being more technologically innovative, etc.).
Works Cited

Joynt, Pat, and Lawrence Welch (1985), "A Strategy for Small  Business Internationalisation," International Marketing  Review (Autumn), 64-73.

Mayo, Michael A., Lawrence J. Marks, and John K. Ryans, Jr.  (1990), "Ethical Problems Encountered in International  Marketing: An Empirical Investigation"  Management  (Jan/Feb), 87-101.

Fritzsche, David J. (1986), "Ethical Issues in Multinational  Marketing," in Marketing Ethics: Guidelines for  Managers, ed. G. R. Laczniak and E. P. Murphy,  Lexington, Ky.: Lexington Books, 85-96.

Gladwin, T. N., and Ingo Walters (1980), "How Multinationals  Can Manage Social and Political Forces," The Journal of  Business Strategy(Summer), 54-68.

Longenecker, Justin G., Joseph A. McKinney, and Carlos W.  Moore (1989),"Ethics in Small Business," Journal of  Small Business Management (January), 27-31.

Robin, Donald P., and R. E. Reidenbach (1987), "Social  Responsibility, Ethics, and Marketing: Closing the Gap  Between Concept and Application," Journal of      Marketing (January), 44-58.

Yaprak, Attila (1985), "An Empirical Study of the  Differences Between Small Exporting and Non-Exporting  U.S. Firms," International Marketing Review     (Summer), 72-83.

Ward, William A. (1987), "Some Ethical Considerations for  Small Business," Sales & Marketing, 57-72.

*All Research Conducted at the libraries of the following schools:
Rutgers University (New Brunswick), Jersey City State College, and Kean College of NJ.
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"Capital Budgeting for the Project Manager"

 Broken down to its simplest form, management consists of two functions: planning and controlling (Berk 25).  The budgeting process affects both.  It is first of all a planning tool, allowing the project manager to figure what resources he has at his disposal, and also what costs are associated with the project which must be built into the overall price of the project to the company or the customer.  Secondly, budgeting is a means of controlling the project, seeing that the resources are used as anticipated and that the project comes in within its parameters.  Especially important is the control of those parts of the cost which represent capital investment in people, facilities, and supplies.
 Budgeting is the process of developing quantitative expressions of operating plans and expectations.  It identifies the resources available to complete a project. Capital budgeting involves looking at the permanent commitments of the business, such as salaries, benefits, supplies, real estate, and other recurring expenses necessary to carry out the work (Sweeney 98, 101-102).  Capital expenditures, in a sense, are the company's overhead, both in terms of people and things.  In any project, the manager in charge must calculate these expenditures and manage them through a budget so that the work can be done in both a timely manner and cost-efficiently.
 For the purposes of discussing capital budgeting for project managers, it is important to define a project.  In business terms, a project is an activity or task with a defined starting or stopping point, with the stopping point normally being the completion of the task (Berk 26).  The project manager must understand first of all what the nature and scope of his project is.  Then he must begin the process of determining the resources he will need to accomplish it and the resources which are available to him.  To do this, he must know what means of measurement are normal in his company or industry.
 Budgets are normally done in terms of manhours or dollar amounts, or a combination of the two.  Then, the first step is to estimate the needs of the project.
 Estimation is a difficult matter, since by its nature it cannot be exact.  The pitfall most new managers fall into is to inflate the estimates.  There is always the tendency to inflate the estimate, either from lack of experience as to what is normally required in a certain area or in an attempt to pad the estimate to allow for contingencies or cost overruns without setting up a separate budget item to deal with the unexpected (Berk 27).  One way to provide a realistic estimate is to break the tasks which make up the project into small subtasks.  Such detailed breakdowns allow the project manager to really see each element of what needs to be done and to realistically decide what resources will be needed to accomplish it.  This is especially important since the accuracy of the budget affects the reality of the profit that can come from completing the task.
 There are three approaches to estimating.  The first is the historical approach, in which costs are estimated based on past projects.  If the task at hand is one that is often repeated in the company, this is a useful method.  However, care must be taken to evaluate the changes in the project at hand from previous ones, and to allow for increased costs based on factors which change with time, such as inflation and increased costs for materials and manpower since the last time the project was undertaken. A second approach is the task-based method.  Here the idea is to make a detailed plan, break the major task into subtasks, and estimate each for costs.  This is especially useful for totally new projects. A third approach combines task-based and historical methods.  Each is used, then the results are compared.  Any large discrepancies are then noted and analyzed to determine the best estimate to apply (Berk 29).
 These estimating methods apply to all forms of budgeting on the project, but they are especially useful in dealing with capital assets and expenditures.  Manpower is one of the crucial needs of any project.  Without the number and quality of workers required, the project will fail.  This involves a variety of capital expenditures. Among them are salary, taxes for the workers such as FICA and income withholdings, and medical and other benefits.  The manager must determine what skills are needed, and how many workers in each skill area so that the levels of necessary compensation can be computed.  Also necessary in this regard is a good estimate of how many manhours in each salary range will be required for completion of the task.  Such costs are built in to any project, and represent one of the major areas of capital investment.
 Another area which is of great importance is in the machinery and facilities required to do the job.  These may be owned by the company or they may be rented.  In either case, the cost of not only obtaining them, but also of maintaining them must be figured.  There are many associated costs here as well.  Insurance, repairs, fuel, and storage must be provided for.  Facilities likewise have many associated costs.  First it must be determined if the buildings or other locations where the work will be carried out are owned by the company or are rented.  Therefore, rent or some form of depreciation on
the building must be factored in, along with cleaning and maintenance, insurance, alterations if necessary, and utilities for running the operation such as gas and electricity.  Even telephone service must be allowed for.  All of these are capital expenditures which can make or break the cost-effectiveness of any project.
 When dealing with an initial budget, the project manager is, of course, dealing with pure projection, even if there is a
historical basis for the estimates made.  And therefore, with built-in contingency monies to help cover the unexpected, it should allow for completion of the project.  However, since things always come up, some theoretical approach to evaluating the budget on an ongoing basis is important. It has been suggested that the best method is a scientific approach which involves identifying any problems in the use of resources as they occur in relation to the original expectations, then proposing and testing solutions, and then implementing the correction (Cook 16).  While this may seem obvious, it is one reason why a well-crafted budget is necessary for the project manager.  It serves as a predictor of what should be happening with the expenditure of time and resources on the project, and can help identify problems as they occur and develop solutions.  On the principle that if you can't measure it, you can't improve it, a budget is not only a necessity for obtaining resources, it is a requirement for trouble shooting problems in the project as they arise (Charney 100).  A manager without a good capital budget is much like a ship without a rudder.
 Finally, in evaluating the success of the project, the manager must use the budget and compare the estimated expenditure of resources with the actual resources used.  This is a check on how well it is going, how efficiently it is being accomplished, and whether additional resources need to be obtained for completion.  This can be accomplished by tracking on a regular basis, usually weekly or monthly, the resources expended in money or manhours, and determining the spending curve and whether it still projects in such a way that the task can be completed within the budget parameters (Lewis 85-90).  Scheduling, while not a part of the budget process, also is of importance here and must work with the provision of overall resources to allow the project to come in within budget and still make a profit.  If the task is on schedule, supplies are being used at expected rates, manhours are expended as planned, other associated capital costs are being used within the expectations of the budget, then the work accomplished is making efficient use of resources.  If there are variations which show that resources are being used to fast, or will not suffice, then adjustments need to be made to either revise the budget and add resources, or to adjust the use of the capitalresourcess so that the project can come in both on time and on budget.
 Capital budgeting to provide and pay for the necessary manpower to do the job, and to insure the availability of the recurring physical resources, both in terms of supplies and facilities, is crucial to accomplishing any project.  The budget is both the means of obtaining adequate resources and expending them in accordance with the plan.  Astute management of both insures a successful result.
Works Cited

Berk, Joseph, and Susan Berk. Managing Effectively: A Handbook
 for First-Time Managers. New York: Sterling Publishing  Co., 1991.
Charney, Cy.  The Manager's Tool Kit. New York: Amacom, 1995.
Cook, Thomas M., and Robert A. Russell. Introduction to
 Management Science. Second edition. Englewood Cliffs:
 Prentice-Hall, Inc., 1981.
Lewis, James P. Fundamentals of Project Management. New York:
 Amacom, 1995.
Sweeney, H.W. Allen, and Robert Rachlin. Handbook of Budgeting.
 New York: John Wiley & Sons, 1981.

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As the "Ambassador of Globalization" for BIGCO, it is important to understand the concerns of the people and workers of developing nations in response to plans for globalization.  There are a wide range of concerns that can be addressed in any discussion of corporate globalization, but a number of concerns that are specific to smaller developing nations.  Some of these major concerns commonly include: profitability for the developing nation; internationalization, which can mean the loss of national identity; threats to peace and security; changes in social structure due to urban migration; environmental issues; and concerns over the governing processes for American corporations in developing nations.  In order to propose the most effective promotion of BIGCO in the global market, these issues must be addressed.
 The current trends in the United States are moving towards the development of international markets through the process of globalization.  The recognition that both American companies and developing countries can benefit, in terms of actual fiscal gains, from supporting global markets, supports the positive impacts of globalization.  Countries like Chile, for example, have benefited significantly from the impacts of globalization and their participation in a number of trade organizations.  As a result, "Chile is some 15 years ahead of its neighbors in market liberalization, thanks to reforms begun under Pinochet in the 70s:  it unilaterally dropped tariffs, floated its currency, privatized profitable firms and spread its export trade out evenly around the world" (Hirsch 1).  For this reason, Chile has become a model for the developing world.
 The example of Chile demonstrates the way in which global planning can significantly impacted the livelihood of the people within the country.  Because of their fiscal planning and participation in globalization, including open trade agreements with both Brazil and the United States, Chile has been able to double their individual average incomes, decrease the rampant poverty that was once widespread, and allow for urbanization that could meet the needs of many companies.  This not only reflects international concern for the people of this developing country, but also for the fiscal health of the country as a whole.
 Another applicable concern of globalization is the loss of national control, pride, personality and self-definition.  While global trade processes do not necessarily support any measures that would go against the national considerations of a developing country, it is clear that globalization, which also supports internationalization, could cause concern over the loss of national identity.  In order for a company like BIGCO to address this issue, it is clear that there must be concern for the impacts of corporate development on individual countries.  The corporation, supported by American trade policies, has an obligation to the country within which they plan to do business.  As a result, it is necessary for each corporation to address their perceived impacts and prevent a takeover of Americanization, led by the corporate structure.  Instead, the company must consider ways in which they can support globalization while keeping reigns on the changes made within the business environment to support this action.
 It has been widely recognized that the process of internationalization, determining the loss of national identities for many smaller companies has been taking place for over a century.  By supporting business that also supports communities, United States business owners can promote globalization without turning to the process of internationalization.  Because of the importance of internationalization, many politicians have begun the process of considering the impacts of similar action (Barney, 1981).  It should also be noted that the development of the EMU is one form of supported internationalization, and has significantly impacted perceptions of international trade.
 Globalization not only supports the short term impacts, but also demonstrates the way in which long term investments can impact international trade.  During the time period between 1985 and 1992, the investment cycles in the United States have change dramatically, with considerable funds reaching into foreign affiliate countries (Anonymous, 1992).  At the same time, NAAFTA, the EMU, and MERCOSUR, have demonstrated that global planning is an imperative part of the process of internationalization (Anonymous, 1992).  If countries can participate in these trade arenas with out concern for the loss of national disposition, it is possible that globalization could have a greater impact.
 Global planning has led to the development of the international trade models mentioned, and focuses on globalization, harmonization and denationalization, especially where legal orders and fiscal responsibilities lie.  Because of the need to protect American interests in foreign countries, it is necessary to develop common international and domestic laws (Dahm, et al, 1987).  Though the trade policies structured under globalization suggest the focus on international policies, the ultimate control over decision-making processes lays in the hands of the sovereignties of each country, rather than being determined by the United States (Dahm, et al, 1987).
 The concern over the differences between international laws and domestic policies has led many people in developiong countries to wonder about the efficacy of global trade through disputes.  In other words, many countries wonder where the United States corporations would stand in regards to the peace and safety of the developing countries.  Because of the issues relative to the changing populations and the influx of businesses, many people have expressed concerns about the social impacts these could have.  Because many individuals not only need a job, but also need social and economic support, the promotion of American business techniques could serve to significantly benefit the workers.
 One of the greatest challenges in supporting globalization is the concern by individual countries about environmental impacts of progress.  The international community has recently recognized that necessary changes must occur to support better business practices in many countries. The problems that have occurred because of the depletion of the ozone layer, the destruction of natural habitats and the decline in the overall status of air quality and water quality suggests that globalization must also incorporate global planning and global policies, in order to support the necessary needs of the planet as a whole.
 It has been widely recognized that differing international policies have readily impacted the environmental concerns presented by many.  Because the policies and personal determinations made within developing nations may not be the same choices made by American
corporations have a responsibility to understand the culture and environmental concerns of individual regions (Beyers, 1992).  By promoting a combination of plans, the international focus of many globalized companies can have demonstrated impacts.
 It is not surprising that global environmental problems have led many to consider the development of urban centers in many small countries and the challenge of migration made by many people to countries or areas with better resources.  As a result, global planning must also address the problems of increased urbanization, and consider the long-term impacts of this process on small developing nations.  Companies like BIGCO should be willing to address these concerns through development plans, recognizing that increased trade and production will be recognized and will increase the populations in urban centers.
 One other major concern in considering globalization and its impacts on developing countries, is the development and application of legal processes for companies like BIGCO.  Many people are concerned over the process of globalization and how it relates to the governing of corporations.  Global planning should consider the necessary restrictions and the efficacy of dual planning processes, that would allow companies and countries to demonstrate their needs.
 Globalization in general has had many positive impacts that significantly outweigh the concerns of many of the people of developing nations.  Many of these countries need international trade revenues to boost their economies.  At the same time, the movement of American corporations into trade agreements in a number of these developing nations has increased the number of available jobs and increased minimum wage levels.  Though international trade is not the only way in which many countries can promote their fiscal health, the determined benefits support the regular trade possibilities.
 It should also be noted that while globalization supports internationalization on a number of levels, it does not necessarily support the denationalization of these same countries.  In other words, globalization does not necessitate support for the loss of a national identity.  Instead, international trade groups attempt to promote national identity through greater focus and increased personal participation.
 Though problems like environmental issues and migration changes have readily been recognized to be a part of the process of globalization and global trade planning, there is no definitive support for the negative impacts of global processes.  Though these concerns need to be addressed by individual companies, like BIGCO, there is no reason that effective and supported changes cannot occur that significantly impact the trade and fiscal processes of many corporations.  Rather than focusing on the concerns, many skeptical individual should focus on the track records of certain companies and understand the benefits that increased development can provide.
 In order to make the transition to internationalization, in support of globalization, it is imperative that corporations consider their influences, their environmental impacts, and their social determinations prior to effecting change in developing countries.  Though recognizing the problems do not necessarily mean that they go away, understanding them creates a forum for successful discourse, one major premise necessary in the addressing concerns over the efficacy of international trade.
Bibliography

Anonymous (1992, August).  United States Department of Commerce, Recent  Trends in International Direct Investment, pp. 2-3.

Barney, Gerald (1981).  The Global 2000 Report to the President.
 Council on the Environmental Quality and the Department of State.

Beyers, Carol (1992).  The US/Mexico Tuna Embargo Dispute:  A Case
 Study of the GATT and Environmental Progress.  Maryland Journal
 of International Law and Trade, vol. 229.

Dahm, et al (1987).  International Law and Municipal Law.  Bernhardt et  al, eds.  Encyclopedia of Public International Law, vol. 238.

Hirsch, Michael (1995, July).  No Tequila Hangover.  Newsweek Online,
 pp. 1-2.
 

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