International Market Research Articles

The Economics of Capital Allocation in Firms: Evidence from Internal Capital Markets

We analyze a unique chief financial officer (CFO) survey data set to examine capital allocation in firms. Top management is aware of agency and information problems at the divisional level and organizes the budgeting process to counteract managerial opportunism, employing systems of interconnected measures, including layers of approval, divisional budgets, reporting requirements, and compensation schemes. When making funding decisions, top management relies heavily on top-level nonfinancial information, such as the assessment of divisional managers’ abilities. However, substantial parts of the capital budget do not require top management approval as firms trade off the benefits and costs of decentralization, thereby deviating from the traditional paradigm of decentralized project initiation but centralized project approval. Even firms with active internal capital markets tilt capital allocation toward relatively even distributions, reflecting the use of capital allocation as a credible communication device. We also find that within-firm agency problems may result in capital rationing, that is, divisions’ restricted access to internal capital. CFOs also believe that integrating multiple businesses into an internal capital market results in tangible financial benefits, predominantly lower costs of capital and higher debt capacities. Thus, our findings also support coinsurance arguments suggesting that internal capital markets may improve access to external financing. This paper was accepted by Victoria Ivashina, finance. Funding: This work was supported by the BBBank Karlsruhe, Wissenschaftsförderung der Sparkassen-Finanzgruppe, and Karlsruher Institut für Technologie (Karlsruhe House of Young Scientists). Publishing fees were supported by the “Funding Programme Open Access Publishing” of the University of Hohenheim. Supplemental Material: The online appendices and data files are available at https://doi.org/10.1287/mnsc.2021.02755 .

The Impact of Institutional Orientation on Export Performance: Mediating Role of Firm Innovativeness

ABSTRACTIn international marketing research, innovativeness is usually considered as an important element for firms that adopt an export orientation and that wonder about their success in foreign markets. It might help exporters to better ensure their international orientations. This study aims to test the relationship between institutional orientation, innovativeness, and export performance. It also aims to test the mediating effect of innovativeness in the relationship between institutional orientation and export performance. For this reason, a questionnaire was administered to 260 exporting companies. Results show that institutional orientation has an effect on export performance, especially through its dimension “conformity.” They also show that innovativeness can mediate the link between institutional orientation and export performance.

Characterization of Drupe Traits in Sixty-Six Teak Candidate Plus Trees (CPTs) in Gujarat Forests of India for Enhanced Seed Collection and Fruit Production

The most valuable timber of the world i.e., teak was recognized as king of wood due to its wood quality such as durability, physical and aesthetic wood property for multiple uses. It is distributed throughout India and Southeast Asia and known for center of teak genetic diversity. It has a high demand in international market and national market due to multifarious uses. However, the natural population of Teak is decreasing in India due to anthropogenic activities, deforestation, climate change and other environmental factors. In addition, the poor seed yield per tree and extremely low seed germination rates are significant problems for the teak plantation industry and production of quality seed. Nevertheless, there are huge gap between demand and supply of industrial timber in India. This can be fulfilled by the teak plantation within agroforestry systems and degraded forest lands. Gujarat forest has natural teak populations which falls in the conjunction point of Western Ghats of India. Hence, sixty-six CPTs of teak were screened out for quality seed collection and reproduction from natural teak populations. Fruits of teak were collected from various CPTs with wide range of geographic locations in Gujarat forests of India. The drupe and stone morphometric traits were studied to capture the phenotypic and genotypic variations; to select better traits on the basis of repeatability coefficient; and to look geographic location effect on various fruit characters and inter-character correlations for quality seed collection and fruit production. Present result showed significant differences (p≤ 0.0001) in all the studied fruit traits among 66 CPTs of Tectona grandis. Drupe were lengthiest in GJNBD 0467 (12.36 mm), broadest in the GJNBD 0467 (14.75 mm) and heaviest in the GJAH 1056 (0.73 g) CPT, whereas smallest in GJNBD 1122 (8.3 mm), narrowest in GJNBD 1122 (9.91 mm) and lightest in GJNBD 1122 (0.32 g) CPT. Stone were longest in GJNBD 0467 (8.71 mm), thickest in GJAH 1056 (10.01 mm) and heaviest in GJAH 1056 (0.51 g) CPT, while shortest in GJNBD 1122 (6.06 mm), thinnest stone in GJNBD 1122 (7.56 mm) and lightest in GJNBD 0772 (0.22 g) CPT. Overall, GJNBD 0467, GJAH 1056, GJNBD 0950, GJAH 0844 and GJNBD 0470 CPTs were superior for studied traits as compared to others. CPT repeatability coefficient was higher for drupe characters as compared to stone parameters, where selection can be made for drupe length for future tree improvement programme. The genetic improvement via CPT selection is better option for maintaining genetic diversity of Teak, its conservation and management. Latitude showed strong negative correlation with drupe length, stone length and drupe mass. Longitude was negatively correlated with stone length and width. Thus, the geographical parameter has an impact on the seed formation, evolution and plant fitness. The strong correlations were found among seed morphometric characters which influenced to seed development and creating fitness interaction with continuous changing environment.

A meta-analysis of corporate social responsibility effects: The role of stakeholder type and country factors

Although research indicates that corporate social responsibility (CSR) can yield positive consumer responses, the challenge remains for companies, especially multinational ones, to effectively tailor CSR activities across different countries to achieve favorable outcomes. To address this, we classify CSR activities based on stakeholder theory into core and extended CSR types. We then introduce a meta-analytic framework that incorporates five country factors to examine how they affect the differential effects of these CSR types. Using a dataset comprising 940 effect sizes from 202 papers across 43 countries on six continents, we find that core CSR generally elicits more positive consumer responses than extended CSR, and that this effect is moderated by country factors. The positive differential effect of core over extended CSR is greater in societies that prioritize secular-rational values over traditional values, and survival values over self-expression values. Additionally, this positive differential effect increases with greater internet penetration but decreases with higher national economic growth rates and tertiary school enrollment. These findings advance the understanding of cross-country differences in CSR effects and types, offering valuable insights for international marketing managers.

African Sovereign Risk Premia and International Market Assets: A Relook Under The COVID-19 Outbreak

Using the wavelet multiscale coherence technique, the paper examines the interdependences between global market assets, sovereign credit default swap (CDS) and yield-to-maturity on bond spread for African economies from January 2019 to March 2023. The empirical results primarily reveal a high level of coherence between global market assets and Africa’s sovereign CDS and yield-to-maturity, although varying across countries and time-frequency domain. Notably, the high degree of coherence and the positive co-movement between sovereign CDS and global market assets are more concentrated at the medium and upper frequency bands. The observed intensity of co-movements between global market assets and sovereign CDS/yield-to-maturity (YTM) of bond spread, with global market assets broadly serving as leading variables, suggests that an increased global investor’s risk aversion positively affects the yields on Africa market bonds. Among the global market assets, we identified that VIX (which is implied volatility of S&P500) has the dominant influence on Africa sovereign CDS/YTM compared to that emanating from Bitcoin and Godman Sachs Commodity Index. This is highly conceivable as VIX gauges bubbling global risks and uncertainties which considerably influences investor’s risk aversion. The heterogeneous lead/lag dynamics also provide useful information to global investors, including by utilizing African markets to rebalance their portfolios for risk management purposes. The empirical findings thus provide further critical information to investors for hedging purposes, and to policymakers in formulating sovereign risk management policies oriented towards minimizing sovereign default risks.

Consumer Impulse Buying in Hungary: a CB-SEM Analysis of Hungarian Consumer Behaviour towards Mobile Short Video Applications Based on a Chinese Reference Model

Mobile Short Video Applications are becoming increasingly popular worldwide. The appropriate content can shape, improve or change consumers' purchasing decisions. This paper examines the attitudinal differences in impulse buying related to the use and acceptance of MSAs by adapting a model already validated in China to Hungarian users. The analysis was conducted using Covariance-Based Structural Equation Modelling (CB-SEM). A structured questionnaire survey of 283 respondents in Hungary shows that the Chinese model cannot fully be applied to Hungary. A major difference between the results of the two models is that in the Hungarian model, perceived expertise shows a positive relationship with flow experience. This indicates that video makers - in the case of Hungarian videos - should produce content including introductory information and the operation of the product. The results suggest that in the case of MSA use in Hungary, perceived expertise affects impulse buying indirectly, but flow experience directly. Flow experience is only influenced by perceived expertise (β = 0.31, ρ<0.05), with an explained variance of 10%. Flow experience (β = 0.46, ρ<0.05) with its direct effect on impulse buying behaviour accounts for 21% of the variance. Hungarian and Chinese MSA users have different preferences in terms of content, thus the results provide important information for both international short video creators and companies entering the international market.

ECOWAS PROTOCOL ON FREE MOVEMENT AND NIGERIA BORDER SECURITY

This study focused on ECOWAS protocol on free movement and Nigeria border security. The study was carried out to determine the extent ECOWAS protocol on free movement of individuals and goods across borders has posed challenge to not only Nigeria but all the states in the region. The work used descriptive research design and only secondary data were sourced and used. The data collected were discussed qualitatively. The work discovered that there is significant impact of ECOWAS protocol on free movement on national security and public order concerns in Nigeria; and ECOWAS protocol on free movement affects security and investment in Nigeria. This is true because there has been cross-border insurgency/terrorism especially in the North East of Nigeria as exemplified by the nefarious activities of the Boko Haram terrorist group and other splinter sects such as Ansaru, and ISWAP. For that, the Protocol is lacking full implementation by member states till today because of the perceived problems it poses to their national security. The study recommends that there is need to revisit of ECOWAS protocol on free movement to correct the framework that has led to porous borders in the region. The study concludes that; the ECOWAS protocol on the free movement of persons and goods has contributed immensely to the worsening security situation in Nigeria.

Unpacking Forest Stewardship Council certification in Chile: The scope and limitations of neoliberal market‐driven governance for achieving sustainable development

AbstractThe Forest Stewardship Council (FSC) is an international NGO promoting sustainable forest management by setting standards and certifying timber as eco‐friendly. After facing significant resistance from the Chilean forestry sector, which is plagued by environmental and territorial conflicts, FSC began certifying Chile's main forestry corporations in 2010. This article examines the implementation of FSC's standards by addressing two questions. First, how does FSC function in practice, including the roles of consultants, chambers, and instruments in the certification process? Second, what are the scope and limitations of FSC in achieving sustainable development and managing forestry industry conflicts? Elaborating on 24 interviews with key forestry stakeholders, ethnographic fieldwork, and documentary analysis, the findings indicate that FSC enhances management practices in the forestry industry by promoting legal compliance, rational production management, and improved relations between firms and local communities. FSC provides a green imaginary that ‘cleans up’ timber production as conflict‐free, facilitating its free circulation in the international market. However, as a private governance system, FSC is based on an artificial consensus that has limitations such as power imbalances between firms and communities, limited sanctioning power, and close ties with large industry actors. This neoliberal form of governance fails to resolve structural problems between industry and indigenous communities, yet it creates strategic opportunities for mediating the relationships between actors. In Chile, FSC enables incomplete citizenship for communities and serves as a ‘soft regulation’ for firms, reducing the likelihood of increased State regulation in the forestry sector.

(Re)designing an International Marketing course: Engaging a diverse classroom in real-client projects

The world is changing. Educators in business administration, including marketing, face the challenge of providing relevant education. Students, as a primary stakeholder, are interested in competencies that make them (competitive) employable. The organizations (employers) are reducing their willingness to train new employees on the job and demand their immediate contribution to organizational goals. Society increasingly emphasizes that higher education must go beyond education and research into the third mission of direct contribution to community development and economic development. This article discusses the (re)designing of an international marketing course based on experimental learning and instructional design. The course is integrated into the local business community and uses, as an asset, a diverse student population to respond to challenges local businesses face in pursuing entrepreneurial internationalization. The effects of the course (re)design are measured through the course evaluations during the last three-year period. The goal of the article is to contribute to collegial discussion on engagement with the business community to increase relevance of education, as well as share ideas for systematic course design and delivery.

Assessment of Heavy Metal (Zinc, Copper, Lead and Cadmium) Contamination in Common Edible Shellfish Species of the Hooghly River and Sunderbans, India

The content of four heavy metals (Zinc, Copper, Lead and Cadmium) in muscles of three shell fish species - prawns -Penaeus monodon and Penaeus indicus and crabs-Scylla serrata, the most prime shellfish food resources of human in the domestic and international market were studied at four stations in the estuarine belt near Bay-of-Bengal which receives wastes of various types from industries and various anthropogenic activities. The samples were digested by acid digestion. The metal contents were quantified using an AAS (Atomic absorption spectrophotometer). The distribution of trace metals accumulated in the muscle tissues of the above mentioned species was in the order- Zn &gt; Cu&gt; Pb&gt; Cd. In the present study, levels of Zinc in the shell fishes ranged from 07.44±0.65 to 128.10 ±2.96 ; Cu ranged from 5 ±0.15 to 99.14 ±1.31; Pb varied from 1.67± 0.14 to 23.99 ± 0.79 and Cd ranged from 1.29± 0.35 to 7.09 ± 0.80.The concentration of the four metals exhibited spatial variation as station 1 &gt;station 2 &gt; station 3 &gt; station 4, which could be a reflection of different bioavailability of metal concentrations in the water body at different stations. The results obtained showed that the metal concentrations in most of the cases were above the threshold value recommended by WHO. Metals such as Cu, Zn, Pb, Cd, can affect various aquatic organisms as well as human being either directly or indirectly as they can enter into the food chain and may be biomagnified at higher trophic levels which is one of the top concerns for human health. Essential heavy metals such as Zinc and Copper are relatively less harmful at low concentration while non-essential metals such as Cd and Pb are highly toxic even at low concentrations.

Lomba Kreativitas Olahan Makanan Berbahan Dasar Porang bagi Ibu-Ibu PKK di Desa Karangpatihan, Kabupaten Ponorogo

Abstract The creativity of the community in processing various types of porang-based foods is needed. Porang is a local Indonesian commodity that has enormous potential to be exported and sold in the international market. Porang tubers are the raw material for making shirataki rice which has a very high selling price. To achieve this goal, training in making processed food from porang is required. This community service programme focuses on training assistance in porang-based food processing. To see how much the community understands after receiving training, on the third day a porang-based food cooking competition was held to motivate residents to make new innovations related to porang food recipes that they develop. The target location for this community service programme is in Karangpatihan Village, Pulung District, Ponorogo Regency by targeting PKK mothers in four hamlets including Jurugan, Selodono, Krajan, and Dungus. This community service activity was closed with a focus group discussion (FGD) to listen to the aspirations of PKK women and see the future of porang in the region. As is the case in several other areas, the constraints of the community in processing porang are related to the processing of porang which is still quite complicated. In addition, the itchiness caused by holding porang in the hand.

The dynamics of the South African lucerne hay industry

ABSTRACT Lucerne hay is undoubtedly one of the most important forage crops used in animal nutrition globally. This article sheds light on the intricacies of the South African lucerne hay sector by offering an industry overview. Lucerne hay quality is categorised into different grades: Supreme, Prime, Grade 1, Grade 2, and Grade 3, each exhibiting its distinct characteristics and attributes based on the nutritional value of dairy cattle. The producer price of lucerne hay is driven by supply and demand in the market. These fluctuations reflect the attractiveness of new producers entering or producers exiting the industry, indicating the sensitivity of market dynamics to external factors like weather and international demand. On average, South Africa exports 160 to 240 thousand tons annually, mainly to neighbouring countries and the Middle East. Over the last several years, the Chinese markets imported a growing volume of South African-produced lucerne hay. Weather conditions are one of the leading drivers of changes in the availability, quantity, and quality of lucerne hay in South Africa, impacting the producer price of lucerne hay in the local market. This article aims to provide insight into the dynamics of the South African lucerne hay industry. Additional research is required to understand the interactions of weather conditions (temperature variations, rainfall and occurrence of rainfall) on lucerne hay production and quality. Understanding international demand for South African lucerne hay will provide insight into the competitiveness of South African lucerne hay in the international market.

Depopulation and its Socio-Economic Consequences. Romania Case Study

Depopulation is a characteristic phenomenon for the Central and Eastern European space that gained in amplitude especially after 1990 in the context of political-ideological changes that affected the states of this region and that also led to changes in demographic behavior. These consisted, on the one hand, in the abolition of pro-natalist policies from the communist period and, on the other hand, in the intensification of emigration flows in connection with the economic and social discrepancies and the free movement of persons. In this context, the paper analyzes the evolution of Romania’s population in a global and European context, the factors that determined its sharp population decline, as well as its economic and social consequences. Also, the demographic characteristics of Romania and future trends regarding the peculiarities and dynamics of the Romanian population are highlighted.

Public Policies for the Energy Efficiency of Buildings in Mexico

In Latin America, the energy crisis has worsened due to the dependence on energy services and fossil fuel imports from highly industrialized countries at prices established by the international market; this is particularly relevant to the construction industry, which presents a significant deficit in optimal energy consumption. Hence, some governments have established public policies to maximize the efficiency of these services and, at the same time, minimize the carbon footprint. In this research study, we reviewed the public policies, strategies, and incentives for energy efficiency (EE) implementation in the residential sector established by the Mexican government. A scoping review methodology was chosen and implemented in the following steps: 1. Research inquiry identification. 2. Determination of the relevant literature and studies. 3. The literature selection. 4. Data graphing. 5. Results collection, overview, and submission. In this systematic review, we identified five mandatory standards (NOM-008-ENER-2001, NOM-009-ENER-2014, NOM-018-ENER-2011, NOM-020-ENER-2011, and NOM-024-ENER-2012), six optional standards, four strategies (Green Mortgage, Integral Sustainable Improvement in Existing Housing, ECOCASA, and NAMA), and three kinds of incentives (green bonds, credit and interest rates (Green Mortgage, FIDE, and Ecocasa), and taxes (Income Tax Reduction)). As a result of the implementation of the above, as of December 2020, NAMA financed 5106 developers of 38 projects in 15 states; contributed to a reduction of 126,779 tons of CO2; and aided 19,913 people. From 2013 to December 2023, EcoCasa subsidized 71,440 households for a total of 224 projects in 25 states; contributed to a reduction of 2.6 million tons of CO2; aided 285,760 Mexicans; and issued EcoCasa certificates for 3,473,556 m2. The results of the EE indicators in residential buildings showed an increase in the housing unit number as well as an increase in household appliances, with those based on power consumption prevailing. The residential sector ranks third in power consumption in Mexico, consuming an estimated 790 pj, of which 76% corresponds to thermal energy and 24% to electric power. Among countries in Latin America and the Caribbean, Mexico has achieved an Energy Transition Index of 62%.

A Comparative Analysis of Ethnic Networks and Internationalization of Latin American Agri-SMEs: The Case of Argentina, Brazil, and Chile

This paper investigates the key drivers influencing the internationalization of agricultural small and medium-sized enterprises (agri-SMEs) in Latin America, with a particular emphasis on the role of social and ethnic networks. Focusing on Argentina, Brazil, and Chile—three of the region’s largest agricultural economies—this study examines how familial and cultural connections between descendants of European immigrants and European entrepreneurs facilitate the global expansion of agri-SMEs. Using a cross-sectional quantitative analysis, data from agri-SME managers reveal the importance of these networks in reducing market entry barriers by providing insider knowledge of foreign markets, regulatory conditions, and potential business partnerships. The findings demonstrate that ethnic networks significantly reduce market entry barriers, providing Latin American agri-SMEs access to essential insider knowledge on foreign markets and local regulations, thereby facilitating internationalization. Additionally, agri-SMEs that leverage these networks are better positioned to meet growing global demands for sustainable, traceable food products, gaining a competitive advantage in international markets. The strength and frequency of interactions within ethnic networks are positively correlated with the degree of internationalization, highlighting the importance of social capital in overcoming operational challenges. This paper contributes to the literature by highlighting the underexplored role of ethnic networks in shaping the international marketing strategies of agricultural firms and their capacity to adapt to evolving consumer behaviors. The study offers practical insights for supporting the global integration of agri-SMEs in Latin America, addressing both operational challenges and the increasing need for sustainable food production practices.

Intellectual Property Risks and Countermeasures in Cross-Border E-Commerce

Cross-border e-commerce has experienced rapid development driven by globalization trends, emerging as a significant force propelling international trade and economic growth. However, with the intensification of legal, cultural differences, and technological changes across nations, intellectual property issues in the cross-border e-commerce sector have become increasingly prominent. Intellectual property serves as the core of business innovation and market competition; any infringement thereof can lead to substantial financial losses for enterprises and erode market trust and brand reputation. Cross-border e-commerce enterprises face multifaceted intellectual property risks, including infringement, brand theft, and data leakage, particularly within differing legal systems, complicating these issues further. The protection of intellectual property is not only crucial for safeguarding corporate interests but also a necessary prerequisite for ensuring the healthy development of the global market. In response, cross-border e-commerce enterprises must adopt proactive measures, ranging from institutional construction to enhancing user awareness, to comprehensively address intellectual property risks and ensure their competitiveness and sustainable development in the international market.

Research on the Relationship Between Cross-Cultural Marketing and Brand Recognition and Loyalty

This paper explores the critical role of cross-cultural countermeasures in international marketing, focusing on the factors that influence the growth of enterprises in diverse cultural contexts and the operational challenges they face. As globalization deepens and the economic and cultural ties between nations become increasingly close, the need for culturally sensitive marketing strategies has never been more crucial. The study investigates how multinational companies, particularly through the case of McDonald’s, successfully navigate the complexities of cross-cultural marketing to enhance brand recognition and customer loyalty. Utilizing a mixed-methods research approach, including both quantitative data analysis and qualitative case studies, the paper examines the impact of localized marketing strategies on brand awareness and consumer behavior in different markets. The findings highlight the importance of adapting marketing strategies to the cultural context of each target market, emphasizing product localization, cultural adaptation in advertising, and leveraging local insights. The research concludes that culturally sensitive marketing strategies significantly contribute to global brand success and customer loyalty, offering practical recommendations for firms aiming to strengthen their global market presence.

Research on the Development Trend of New Energy Electric Vehicles in China based on Mathematical Model

As the global economic development moves closer to the direction of green sustainability, the international automobile market pays more and more attention to the development of new energy vehicles. New energy electric vehicle (NEV), as a kind of new energy vehicles, has developed rapidly in recent years due to its characteristics of low pollution, low energy consumption, peak power consumption and adjustment capacity, and has been welcomed by global consumers and governments. The Chinese government conforms to the development of The Times and actively promotes the development of its industry. This paper aims to study the development trend of China's new energy electric vehicles in China, through the establishment of multiple linear regression equation model analysis of different factors of new energy electric vehicles, and using the stochastic comparison model compared the influence of new energy electric vehicles on the traditional energy vehicle industry, and establish the influence factor model, analyze the international policy influence on the development of new energy electric vehicles, in the whole research process to test and the advantages and disadvantages analysis.

Tesla’s Electric Future: A Comprehensive Marketing Strategy Analysis and Implementation Plan

This paper deeply explores the essence of Tesla’s marketing strategy in the field of electric vehicles, and accurately extracts three core competitiveness: brand influence, technological innovation and vertical integration of industrial chain. At the same time, it also faces the severe challenges faced by Tesla in expanding production capacity and coping with fierce competition in the market. In view of the explosive growth trend of the global electric vehicle market and the huge potential of the international market, this paper carefully planned a series of comprehensive strategic measures aimed at promoting Tesla’s continued growth. These measures not only cover the diversification of product lines, refined pricing strategies, increased investment in marketing resources and global market expansion, but also emphasize the flexible response mechanism for extreme market demand changes and deep cultivation of emerging markets to ensure Tesla’s leading position in the global electric vehicle industry and continue to lead the trend of industry innovation and development. In such a rapidly changing industry, Tesla must continuously enhance its strategic adaptability and innovation capabilities to meet the challenges of the future.

A Study on the Translation of Instructions for Heat-Clearing and Detoxifying Traditional Chinese Medicines under the Functional Equivalence Theory

Heat-clearing and detoxifying traditional Chinese medicines are an important part and distinctive advantage of China’s medical and health undertakings. Traditional Chinese medicine is an outstanding traditional culture of the Chinese nation and a unique and significant health resource in our country. The rapidly growing international market has created excellent opportunities for the export of heat-clearing and detoxifying traditional Chinese medicines. Currently, the English translation of instructions for proprietary Chinese medicines lacks unified translation standards and the guidance of translation theories. The existing English translations of instructions for proprietary Chinese medicines in our country have problems such as confusion and non-standardization. Therefore, the research on the instructions of heat-clearing and detoxifying medicines under the functional equivalence theory is highly significant. This paper takes several common heat-clearing and detoxifying medicines available on the market as examples, analyzes the problems and their causes in the translation of the instructions from the perspective of the functional equivalence theory, and finds more reasonable and standardized translation methods. It helps foreign consumers understand the characteristics and functions of traditional Chinese medicine, thereby stimulating their consumption desires. This paper studies the translation process using the functional equivalence theory, investigates the structure and language features of the instructions for traditional Chinese medicine, and discusses the corresponding translation strategies for the instructions of heat-clearing and detoxifying traditional Chinese medicines at the lexical and syntactic levels respectively to achieve functional equivalence.