Question

What type of problems (e.g., communication-and/or negotiation-related) can be encountered when attempting to expand a Housing company internationally? Explain.

Answer 1

Q: What type of problems (e.g., communication-and/or negotiation-related) can be encountered when attempting to expand a Housing company internationally? Explain.

The Domestic company is a company who is operating their business transaction up to the domestic boundaries of the country, but when the company cross the domestic boundaries and enter into international business, it will become the International Company. international market help to expansion and earn more review for the domestic business. Like Export, Foreign Direct Investment, Franchises in other Countries, etc.

                When a domestic business enters international boundaries they face many problems and issues. Let' s understand the problem faced by domestic companies for international expansion.

1. Communication Problem

Communication is the common medium to share information with the public, but with a change in the country, language changes. Need for domestic companies to understand and prepare themself for the language of the country where the company going for expansion.

2. Cultural Issue

Culture is a set of customs and beliefs of any country, every country has different beliefs and customs. It's important for the Domestic Company to understand the culture of international Countries and modify their products according to the country demand, else it becomes difficult for the business for survivals

3. Negotiation Problem

Negotiation is the process of reaching a specific goal and agreement that help to complete the deal of the business. International Country demands excessive negotiation for the pricing of the product. Many times it becomes difficult for the company to sell the product below cost price.

4. Regulation of Foreign Law

It is the responsibility of every company that are going to enter any foreign country business, then they need to keep watch on foreign law and regulation to follow them in the business practices. Many times becomes difficult for entry in the International Market because many countries don't allow any other country to trade in their country.

5. International Player

There are already lots of international players who captured international business, now it becomes challenging for the domestic business to enter the international business. The domestic company needs to understand the international players before entering the international business.

In short, we understand that it is not so easy to enter international business for the domestic business. So before taking any decisions for the international business, the company needs to analyze the technical as well as financial.

All the very Best