International management

International
Management
Managing Across Borders and Cultures

TEXT AND CASES

EIGHTH EDITION

Helen Deresky

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to include:

– Updated! Major revisions made to examples and case studies to
refl ect the latest global developments.

– New! Coverage of the global economic crisis and its effects on
strategy has been added throughout the eighth edition.

– Updated! Expanded coverage of management issues regarding
emerging market economies.

International Management explores the dynamic global environment of
business management and uses locally applicable cases and examples
including the Lynas Corporation in Malaysia, 1time Airline in South Africa
and HSBC in Dubai.

GLOBAL
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INTERNATIONAL
MANAGEMENT

Managing Across Borders and Cultures
TEXT AND CASES

Eighth Edition

HELEN DERESKY
Professor Emerita, State University of New York–Plattsburgh

Boston Columbus Indianapolis New York San Francisco Upper Saddle River

Amsterdam Cape Town Dubai London Madrid Milan Munich Paris Montréal Toronto

Delhi Mexico City São Paulo Sydney Hong Kong Seoul Singapore Taipei Tokyo

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Across Borders and Cultures, Text and Cases, Eighth Edition, ISBN 978-0-13-306212-0 by Helen Deresky,
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ISBN-13: 978-0-273-78705-1
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To my husband, John, and my children, John, Mark, and Lara,
for their love and support

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Brief Contents

5

Preface 13

Part 1 the Global Manager’s Environment 21
Chapter 1 Assessing the Environment: Political, Economic, Legal,

Technological 22
Chapter 2 Managing Interdependence: Social Responsibility, Ethics,

Sustainability 58

Comprehensive Cases PC1-1
New: Case 1 An Ethics Role-Playing Case: Stockholders versus

Stakeholders (Global/Sri Lanka) PC1-1
New: Case 2 BlackBerry in International Markets: Balancing

Interests and Host Nations’ Security
Concerns (Global/Middle East) PC1-3

Part 2 the Cultural Context of Global Management 89
Chapter 3 Understanding the Role of Culture 90
Chapter 4 Communicating Across Cultures 130
Chapter 5 Cross-cultural Negotiation and Decision Making 163

Comprehensive Cases PC2-1
New: Case 3 Google’s Orkut in Brazil: What’s So Social

about It? (Brazil) PC2-1
Case 4 MTV Networks: The Arabian Challenge

(Saudi Arabia) PC2-9

Part 3 Formulating and Implementing Strategy for International
and Global Operations 191

Chapter 6 Formulating Strategy 192
Chapter 7 Implementing Strategy: Strategic Alliances; Small es;

Emerging Economy Firms 234
Chapter 8 Organization Structure and Control Systems 261

Comprehensive Cases PC3-1
New: Case 5 Alibaba in 2011: Competing in China &

Beyond (China/Global) PC3-1
New: Case 6 Carrefour’s Misadventure in Russia

(France/Russia) PC3-17
New: Case 7 Walmart’s Expansion in Africa: A New

Exploration Strategy (U.S./Africa) PC3-27
New: Case 8 Evaluating the Chrysler-Fiat Auto Alliance

in 2012 (Italy/U.S./Global) PC3-33

Part 4 Global Human resources Management 287
Chapter 9 Staffing, Training, and Compensation for Global Operations 288
Chapter 10 Developing a Global Management Cadre 318
Chapter 11 Motivating and Leading 348

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6 BRIEF CONTENTS

Comprehensive Cases PC4-1
New: Case 9 Foreign Investment in Chinese Banking Sector:

HR Challenges (China) PC4-1
New: Case 10 Indra Nooyi: A Transcultural Leader

(India/Global) PC4-9

Part 5 Integrative Section IC-1
Integrative Term Project IC-1

New: Integrative Case: Case 11 Mahindra and Mahindra (B):
An Emerging Global Giant? (India/
Global) IC-3

New: Case 12 After the Breakup:
The Troubled Alliance Between
Volkswagen and Suzuki
(Japan/Germany) IC-13

Glossary 375
Endnotes 381
Name and Subject Index 397

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Contents

7

Preface 13

Part 1 the Global Manager’s
Environment 21

Chapter 1 assessing the Environment:
Political, Economic, Legal,
technological 22
Opening Profile: The Globalization of
Risk 23
The Global Environment 24

Globalization 24
Global Trends 24

Globality and Emerging Markets 25
Backlash against Globalization 27
Effects of Institutions on Global Trade 28
Effects of Globalization on Corporations 28

Small and Medium-Sized Enterprises (SMEs) 30
Regional Trading Blocs 30

The European Union (EU) 30
Asia 32

Comparative Management in Focus: China
Helps Prop Up the Global Economy 32

The Americas 16
Other Regions in the World 37

The Russian Federation 37
The Middle East 37
Developing Economies 38
The African Union (AU) 38

The Globalization of Information
Technology 38

Management in Action: Intel Brings Changes
to Vietnam’s Economy and Culture 39
The Globalization of Human Capital 39

The Global Manager’s Role 40

The Political and Economic Environment 41
Political Risk 42
Political Risk Assessment 44
Managing Political Risk 44
Managing Terrorism Risk 45
Economic Risk 45

The Legal Environment 46
Contract 47
Other Regulatory Issues 47

The Technological Environment 48
Under the Lens: Information Technology (IT) 49

Global E- 50

Conclusion 52
Summary of Key Points 53 • Discussion
Questions 53 • Application

Exercises 54 • Experiential
Exercise 54 • Internet Resources 54

E CaSE Study: Apple’s iPhones—Not
“Made in America” 54

Chapter 2 Managing Interdependence:
Social responsibility, Ethics,
Sustainability 58
Opening Profile: McDonald’s CSR Experience
in China 59
The Social Responsibility of MNCs 60
Under the Lens: Managing CSR in the
Workplace 61

CSR: Global Consensus or Regional
Variation? 63
From CSR to Shared Value? 64
MNC Responsibility Toward Human Rights 64

Comparative Management in Focus: Doing
in China—CSR and the Human
Rights Challenge 65
Ethics in Global Management 67

Ethics in Uses of Technology 70
Bribery 72
Making the Right Decision 74

Managing Interdependence 76
Foreign Subsidiaries in the United States 76
Managing Subsidiary–Host Country
Interdependence 76
Managing Environmental Interdependence and
Sustainability 79

Under the Lens: Mining Corporation and
Pollution Charges—Lynas Corporation in
Malaysia 81
Management in Action: Recycling Lives—
Social Entrepreneurship Breaking Down
Barriers 82

Implementing Sustainability Strategies 82

Conclusion 83
Summary of Key Points 84 • Discussion
Questions 84 • Application
Exercise 85 • Experiential
Exercise 85 • Internet Resources 85

E CaSE Study: Nike’s CSR
Challenge 86

Comprehensive Cases PC1-1
New: Case 1 An Ethics Role-Playing Case:

Stockholders versus Stakeholders PC1-1
New: Case 2 BlackBerry in International Markets:

Balancing Interests and Host
Nations’ Security Concerns PC1-3

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8 CONTENTS8 CONTENTS

Part 2 the Cultural Context of Global
Management 89

Chapter 3 understanding the role of
Culture 90
Opening Profile: Adjusting to Saudi
Arabian Culture 91
Culture and Its Effects on
Organizations 94

Societal Culture 94
Organizational Culture 95
Culture’s Effects on Management 95
Influences on National Culture 98

Cultural Value Dimensions 98
Project GLOBE Cultural Dimensions 98

Under the Lens: Religion and the
Workplace 99

Cultural Clusters 102

Hofstede’s Value Dimensions 104
Trompenaars’s Value Dimensions 106

Consequence or Cause? 107

Critical Operational Value Differences 108

The Internet and Culture 109
Management in Action: India’s IT Industry
Brings Cultural Changes 111
Developing Cultural Profiles 112
Comparative Management in Focus:
Profiles in Culture—Japan, Germany, Latin
America 113
Culture and Management Styles Around the
World 118
Under the Lens: Doing in Brazil—
Language, Culture, Customs,
and Etiquette 118

Saudi Arabia 122
Chinese Family Small es 122

Conclusion 124
Summary of Key Points 124 • Discussion
Questions 125 • Application
Exercises 125 • Experiential
Exercises 125 • Internet Resources 126

E CaSE Study: Australia and New
Zealand: Doing with
Indonesia 126

Chapter 4 Communicating across
Cultures 130
Opening Profile: The Impact of Social Media
on Global 131
The Communication Process 132

Cultural Noise in the Communication Process 133

The Culture–Communication Link 133
Trust in Communication 134
The GLOBE Project 135
Cultural Variables in the Communication
Process 135

Under the Lens: Communicating in
India—Language, Culture, Customs,
and Etiquette 136
Under the Lens: How Feng Shui Affects
144

Context 146

Management in Action: Oriental Poker
Face: Eastern Deception or Western
Inscrutability? 148
Comparative Management in Focus:
Communicating with Arabs 149

Communication Channels 151

Information Technology: Going Global and
Acting Local 154
Under the Lens: Google’s “Street View”
Makes Friends in Japan but Clashes with
European Culture 155
Managing Cross-Cultural
Communication 156

Developing Cultural Sensitivity 156
Careful Encoding 156
Selective Transmission 157
Careful Decoding of Feedback 157
Follow-up Actions 157

Conclusion 158
Summary of Key Points 158 • Discussion
Questions 159 • Application
Exercises 159 • Experiential
Exercise 159 • Internet Resources 159

E CaSE Study: Miscommunications with
a Brazilian Auto Parts Manufacturer 160

Chapter 5 Cross-cultural Negotiation and
decision Making 163
Opening Profile: Shiseido and Bare
Escentuals—Cultural Conflicts in
Negotiations 164
Negotiation 165
The Negotiation Process 165

Stage One: Preparation 166
Variables in the Negotiating Process 166

Stage Two: Relationship Building 167
Nontask Sounding 167

Stage Three: Exchanging Task-Related
Information 168
Stage Four: Persuasion 168
Stage Five: Concessions and Agreement 169

Management in Action: Cultural
Misunderstanding—The Danone-Wahaha
Joint Venture in China Splits after Years of
Legal Dispute 170
Understanding Negotiation Styles 171

Successful Negotiators around the World 173
Comparing Profiles 175

Managing Negotiation 175
Using the Internet to Support Negotiations 176

E-Negotiations 177

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litigation
Underline

CONTENTS 9

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Managing Conflict Resolution 177

Comparative Management in Focus:
Negotiating with the Chinese 177

Context in Negotiations 180

Decision Making 181
The Influence of Culture on Decision Making 182

Under the Lens: Negotiations and Decisions
to Save the Eurozone System 182

Approaches to Decision Making 184

Comparative Management in Focus: Decision
Making in Japanese Companies 185
Conclusion 187
Summary of Key Points 187 • Discussion
Questions 187 • Experiential
Exercise 188 • Internet Resources 188

E CaSE Study: Facebook’s Continued
Negotiations in China 189

Comprehensive Cases PC2-1
New: Case 3 Google’s Orkut in Brazil: What’s So

Social about It? PC2-1
New: Case 4 MTV Networks: The Arabian

Challenge PC2-9

Part 3 Formulating and Implementing
Strategy for International and
Global Operations 191

Chapter 6 Formulating Strategy 192
Opening Profile: Global Companies Take
Advantage of Opportunities in South
Africa 193
Reasons for Going International 196

Reactive Reasons 196
Globalization of Competitors 196
Trade Barriers 197
Regulations and Restrictions 197
Customer Demands 197

Proactive Reasons 197
Economies of Scale 197
Growth Opportunities 197
Resource Access and Cost Savings 198
Incentives 198

Management in Action: 1time Airlines 199
Strategic Formulation Process 200
Steps in Developing International and Global
Strategies 200

Step 1. Establish Mission and Objectives 201
Step 2. Assess External Environment 202

Institutional Effects on International
Competition 203

Under the Lens: China Limits Foreign
Property Ownership 204

Sources of Environmental Information 205
Step 3. Analyze Internal Factors 205
Competitive Analysis 206

Strategic Decision-Making Models 208
Step 4. Evaluate Global and International Strategic
Alternatives 209
Approaches to World Markets 209

Global Strategy 209
Regionalization/Localization 210

Global Integrative Strategies 211
Using E- for Global Expansion 212
E-Global or E-Local? 214
Step 5. Evaluate Entry Strategy
Alternatives 215

Exporting 215
Licensing 216
Franchising 216
Contract Manufacturing 216
Offshoring 217
Service Sector Outsourcing 217
Turnkey Operations 218
Management Contracts 218
International Joint Ventures 220
Fully Owned Subsidiaries 220
E- 221

Step 6. Decide on Strategy 221

Comparative Management in Focus: Strategic
Planning for Emerging Markets 223

Timing Entry and Scheduling Expansions 230
The Influence of Culture on Strategic
Choices 230

Conclusion 230
Summary of Key Points 231 • Discussion
Questions 231 • Application
Exercises 231 • Experiential
Exercise 232 • Internet Resources 232

E CaSE Study: Search Engines in Global
232

Chapter 7 Implementing Strategy: Strategic
alliances; Small es;
Emerging Economy Firms 234
Opening Profile: From BP to Exxon: Beware
the Alliance with the Bear 235
Strategic Alliances 235

Joint Ventures 236
Equity Strategic Alliances 237
Non-Equity Strategic Alliances 237
Global Strategic Alliances 237
Global and Cross-Border Alliances: Motivations and
Benefits 238
Challenges in Implementing Global
Alliances 239
Implementing Alliances Between SMEs and
MNCs 241

Under the Lens: Dancing with
Gorillas: How SMEs Can Internationalize
through Relationships with Foreign
Multinationals 241

Guidelines for Successful Alliances 243

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10 CONTENTS

Comparative Management in Focus: Joint
Ventures in the Russian Federation 244
Implementing Strategy 247

Implementing Strategies for SMEs 247

Under the Lens: Breaking Down Barriers for
Small Exports 248

Implementing a Global Sourcing Strategy 249

Under the Lens: Global Supply Chain Risks—
The Japanese Disaster 250

Implementing Strategies for Emerging Economy
Firms 251
Challenges in Implementing Strategies in Emerging
Markets 252
Managing Performance in International Joint
Ventures 252
Knowledge Management in IJVs 253
Government Influences on Strategic
Implementation 254
Cultural Influences on Strategic
Implementation 255

Management in Action: Mittal’s Marriage to
Arcelor Breaks the Marwari Rules 256

E-commerce Impact on Strategy
Implementation 257

Conclusion 258
Summary of Key Points 258 • Discussion
Questions 258 • Application
Exercise 259 • Internet Resources 259

E CaSE Study: The Nokia-Microsoft
Alliance in the Global Smartphone Industry
(circa 2011) 259

Chapter 8 Organization Structure and Control
Systems 261
Opening Profile: Tata’s Acquisition
of Jaguar Land Rover 262
Organizational Structure 263
Evolution and Change in MNC Organizational
Structures 263
Under the Lens: Samsung Electronics
Reorganizes to Fight Downturn 264

Integrated Global Structures 265

Organizing for Globalization 268
Organizing to “Be Global, Act Local” 268

Management in Action: Procter & Gamble’s
“Think Globally-Act Locally” Structure—10
Years of Success 270
Emergent Structural Forms 272
Comparative Management in Focus: Changing
Organizational Structures of Emerging
Market Companies 272

Interorganizational Networks 273
The Global E-Corporation Network Structure 273
The Transnational Corporation (TNC) Network
Structure 274

Choice of Organizational Form 275
Organizational Change and Design Variables 275

Control Systems for Global Operations 277
Under the Lens: FIFA—Restructuring for
Governance Oversight of Ethics 278

Direct Coordinating Mechanisms 279
Indirect Coordinating Mechanisms 280

Managing Effective Monitoring Systems 281
The Appropriateness of Monitoring and Reporting
Systems 281
The Role of Information Systems 281
Evaluation Variables Across Countries 282

Conclusion 282
Summary of Key Points 282 • Discussion
Questions 263 • Application
Exercises 263 • Experiential
Exercise 263 • Internet Resources 283

E CaSE Study: HSBC’s Global Reorganization
and Corporate Performance in 2012 284

Comprehensive Cases PC3-1
New: Case 5 Alibaba in 2011: Competing in China &

Beyond PC3-1
New: Case 6 Carrefour’s Misadventure in

Russia PC3-17
New: Case 7 Walmart’s Expansion in Africa: A New

Exploration Strategy PC3-27
New: Case 8 Evaluating the Chrysler-Fiat Auto

Alliance in 2012 PC3-33

Part 4 Global Human resources
Management 287

Chapter 9 Staffing, training, and
Compensation for Global
Operations 288
Opening Profile: Staffing Company
Operations in Emerging Markets 289
Staffing for Global Operations 291
Under the Lens: HSBC’s Staffing Challenges in
the UAE 293
Managing Expatriates 298

Expatriate Selection 298
Expatriate Performance Management 299

Expatriate Training and Development 300
Cross-cultural Training 302

Culture Shock 302
Subculture Shock 304

Training Techniques 304
Integrating Training with Global Orientation 305

Compensating Expatriates 305

Training and Compensating Host-Country
Nationals 308

Training HCNs 308

Management in Action: Success! Starbucks’
Java Style Helps to Recruit, Train, and Retain
Local Managers in Beijing 309

Compensating HCNs 311

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Comparative Management in Focus: IHRM
Practices in Australia, Canada, China,
Indonesia, Japan, Latin America, Mexico, South
Korea, Taiwan, and the United States 312
Conclusion 314
Summary of Key Points 314 • Discussion
Questions 314 • Application
Exercises 314 • Experiential
Exercise 315 • Internet Resources 315

E CaSE Study: Kelly’s Assignment in
Japan 315

Chapter 10 developing a Global Management
Cadre 318
Opening Profile: The Expat Life 319
Expatriate Career Management 320

Preparation, Adaptation, and Repatriation 321
The Role of the Expatriate Spouse 322
Expatriate Retention 323

The Role of Repatriation in Developing a
Global Management Cadre 323

Knowledge Transfer 324

Global Management Teams 326
Under the Lens: Expatriates’ Careers Add to
Knowledge Transfer 326

“Virtual” Transnational Teams 328
Managing Transnational Teams 329

Management in Action: The Role of Women in
International Management 332
Working Within Local Labor Relations
Systems 334

The Impact of Unions on es 334
Organized Labor Around the World 335
Convergence Versus Divergence in Labor
Systems 337

Under the Lens: Vietnam—The Union Role in
Achieving Manufacturing Sustainability and
Global Competitiveness 338

Adapting to Local Industrial Relations Systems 340
The NAFTA and Labor Relations in Mexico 341

Comparative Management in Focus: Labor
Relations in Germany 342
Conclusion 344
Summary of Key Points 344 • Discussion
Questions 345 • Application
Exercise 345 • Experiential
Exercise 345 • Internet Resources 345

E CaSE Study: Expatriate Management at
AstraZeneca 345

Chapter 11 Motivating and Leading 348
Opening Profile: The EU Leader—
Myth or Reality? 349
Motivating 350

Cross-Cultural Research on Motivation 350
The Meaning of Work 351
The Needs Hierarchy in the International
Context 353

Comparative Management in Focus:
Motivation in Mexico 354
Under the Lens: Managing in
Russia—Motivation and Leadership
Challenges 358

Reward Systems 360

Leading 361
The Global Leader’s Role and
Environment 361
Under the Lens: Global Leaders from
India 363

The E- Effect on Leadership 364

Management in Action: Leadership in a
Digital World 364
Cross-Cultural Research on Leadership 365
Contingency Leadership: The Culture
Variable 366

The GLOBE Project 366
Earlier Leadership Research 367

Conclusion 371
Summary of Key Points 371 • Discussion
Questions 371 • Application
Exercises 372 • Experiential
Exercise 372 • Internet Resources 372

E CaSE Study: The Olympus Debacle—
Western Leader Clashes with Japan’s
Corporate Leadership Style 372

Comprehensive Cases PC4-1
New: Case 9 Foreign Investment in Chinese Banking

Sector: HR Challenges PC4-1
New: Case 10 Indra Nooyi: A Transcultural

Leader PC4-9

Part 5 Integrative Section IC-1
Integrative Term Project IC-1
New: Integrative Case: Case 11 Mahindra

and Mahindra (B): An Emerging Global
Giant? IC-3

New: Case 12 After the Breakup: The Troubled
Alliance Between Volkswagen and
Suzuki IC-13

Glossary 375
Endnotes 381
Name and Subject Index 397

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Preface

13

EiGhth Edition ChanGEs
• Comprehensive cases: 11 of the 12 comprehensive cases are new and current; one is

a popular one from the seventh edition. The case selection provides increased coverage
of emerging markets and high-technology companies. A range of topics and geographic
locations is included, as well as an interactive Ethics Role Playing Case.

• Integrative Section: There are two new comprehensive cases in the Integrative sec-
tion that are exciting because they cover topics from throughout the book: Mahin-
dra and Mahindra, an “emerging” giant, and the Volkswagen-Suzuki breakup. In
addition, the popular Integrative Term Project has been retained.

• A new feature box called “Under the Lens” has been added—one or two in each
chapter. This feature gives an in-depth look at important aspects of the chapter subjects,
including, for example, “Doing in Brazil,” “How Feng Shui Affects Busi-
ness,” “Negotiations and Decisions to Save the Eurozone System,” and “How SMEs Can
Internationalize.”

• Maps added throughout.

• Chapter-Opening Profiles: Nine of the 11 Opening Profiles are new, keeping two
favorites. Examples are “The Globalization of Risk,” and “The Impact of Social
Media on Global .”

• Chapter-Ending Cases: There are eight new chapter-ending cases, keeping three
favorites. Examples …

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$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

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Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

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Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

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Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

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Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

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You can contact our live agent via WhatsApp! Via + 1 929 473-0077

Feel free to ask questions, clarifications, or discounts available when placing an order.

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