Exporting[ edit ] Many manufacturing firms began their global expansion as exporters and only later switched to another mode for serving a foreign market. Exports also include distribution of information sent as email, an email attachment, fax or in a telephone conversation. While restrictive business practices sometimes have a similar effect, they are not usually regarded as trade barriers.
Expanding internationally can sometimes be a profitable venture, while many businesses have flopped when they took that approach. Before expanding your franchise internationally, weigh some of the pros and cons involved.
Exposure to New Markets When you expand the franchise internationally, you can sometimes take advantage of new markets that are unfamiliar with your business model.
For example, if you own a sandwich restaurant, you might open the first sandwich restaurant of its kind in a developing market. When you own the first business of its kind in an international market, you may be able to bring in substantial profits. When a new business comes into a region and the people like it, it creates a cash cow for the owner.
Favorable Regulations Depending on where you decide to expand, you may be able to take advantage of favorable government regulations.
In many countries, you do not have to submit to the same types of regulations that are required in the United States. You may also be able to save money on taxes and the fees it takes to get started.
If you pay lower taxes in that country, it can help improve the bottom line for your business. Cultural Differences One of the potential problems of expanding into other countries is overcoming the cultural barriers. Just because something is popular in the United States does not necessarily mean that it will be popular in other countries.
Every country has its own culture, and you may not be able to accurately predict what people in that culture will enjoy. Before getting involved in another country, it makes sense to do some market research so that you can minimize this risk.
Compliance Challenges Just as cultural differences can create issues with branding, public relations and corporate culture, regulatory differences can also pose a significant challenge.
Business laws and regulations can vary significantly between countries, provinces, and states and you may find that these differences affect every aspect of your business, including human resources policies, employee rights and benefits, and even the ingredients you can use to formulate your products.
Prepare to hire separate legal and compliance teams for your international offices. Financial Risk When expanding into another country, you have to take into consideration the financial risks that you are taking on as a business owner.
For example, the exchange rates between currencies could lead to an unfavorable return on your investment.
You may also have a hard time getting access to the supplies and products you need in any other country. Some countries charge tariffs and fees to ship products in, which could make your business less profitable.
Global Strategic Management About the Author Luke Arthur has been writing professionally since on a number of different subjects.
In addition to writing informative articles, he published a book, "Modern Day Parables," in About the Author.
Brian Hill is the author of four popular business and finance books: "The Making of a Bestseller," "Inside Secrets to Venture Capital," "Attracting Capital from Angels" and his.
The Challenges and Benefits of Doing Business in Russia. Over the past year, Russia has made headlines by reportedly meddling in the US election and stoking the fire of confrontation with Ukraine.
Given the country’s reputation for controversy, it’s no surprise that companies face a number of distinct challenges when doing business abroad in Russia. Furthermore being a British company, Singapore works on a system that we are familiar with both in terms of business language, culture (for the most part) and legal systems.
Government investing heavily in smart cities; For the built environment sector – sustainability, productivity .
Advantages & Disadvantages of Doing Business in Emerging Markets by Neil Kokemuller Partnering with local businesses or suppliers often helps companies get established in emerging markets. A Beautiful Constraint: How To Transform Your Limitations Into Advantages, and Why It's Everyone's Business [Adam Morgan, Mark Barden] on benjaminpohle.com *FREE* shipping on qualifying offers.
An inspiring yet practical guide for transforming limitations into opportunities A Beautiful Constraint: How to Transform Your Limitations Into Advantages And Why It’s Everyone’s Business . I’ve previously written about why you might want to be a manager and the 13 skills needed by a benjaminpohle.com article explains the seven biggest challenges faced by a manager.
1. Achieving a Stretch Goal The organization you’re managing is responsible for something — whether it’s performing a business process, supporting some other .