Opening and operating a franchise in a different country: is illegal according to the clayton antitrust act. is much less risky than owning a domestically based franchise. is no different than setting up a franchise in the domestic market. may require the owner to adapt to social and cultural differences.

Opening and operating a franchise in a different country may require the owner to adapt to social and cultural differences. In different countries people have differences in the social environment and the culture they follows. A company needs to understands these differences with utmost care and should offer their products or services that are in sync with cultural and social norms. Anything that offend country's cultural and social norms can result in negative reaction of people towards the franchise.

$444.42

Explanation:

For computing the saving amount, first need to calculate the economic order quantity, total cost etc

The economic order quantity is

where,

Annual demand is

= 774 packaging crates × 12 months

= 9,932 crates

And, the carrying cost is

= $12 × 34%

= $4.08

= 363.37 crates

Now the total cost is

= Annual ordering cost + Annual carrying cost

= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit

= 9,288 ÷ 363 × $29 + 363 ÷ 2 × $4.08

= $742.02 + $740.52

= $1,482.54

Now the total cost in case of 774 packing crates is

= Annual ordering cost + Annual carrying cost

= Annual demand ÷ Economic order quantity × ordering cost per order + Economic order quantity ÷ 2 × carrying cost per unit

= 9,288 ÷ 774 × $29 + 774 ÷ 2 × $4.08

= $348 + $1,578.96

= $1,926.96

So, the annual saving cost is

= $1,926.96 - $1,482.54

= $444.42