In: Operations Management
Describe some of the challenges and opportunities for Canadian businesses entering foreign markets.
Challenges and opportunities for Canadian businesses entering foreign markets
Canada being a developed and sophiscated country need to face a lot of challenges and opportunities to overcome in foreign market.
Opportunities
They have the opportunity to compete in a more diversified environment and access to new customers in foreign market. Canada is a small country with low population .Canada can relocate and start operations in other countries such as India and China that have cheap labor that can help you to reduce costs. The business risk involved in operating one market also reduces by entering into foreign markets. If a particular business is stuck in one market the risk involved is high whereas entering into foreign market can help you to access new markets and operate in various economies which can reduce the failure of operations as the business is operation in various markets.
Challenges
Once the companies enter into foreign market they can access to new customers, lowering costs and diversification of business risks. Going international arena means bringing into challenges political risks, economic risks, cultural risks, financing and access to the markets. Political risks refer to the government disturbance and intrusion with business to damage a business entity in a country. Entering a new foreign market can bring out challenges such as military take overs, terrorist insurrection economic etc... Economic risks refer to the state’s economic policies property rights, currency exchange rates. Cultural risk refers to company struggles due to differences in customs, norms, language, customer preferences and cultural factors.