Question

Assess Four (4) obstacles for any business to venture into global market. Justify you answer.

Answer 1

Businesses are follows basic strategies to enter into the global market. But certainly there are some obstacles which poses threat to enter into global market, which can’t be denied.

The four obstacles are-

1. International Company structure-    

It is very important to decide that company will be run by a single point or the separate heads will be established in the various regions to coordinate with the workers.

As for example Coca-Cola a successful international business has established their continental headquarters.

2. Foreign laws and regulations-

Need to understand properly the foreign laws and regulations. Need to comply with tax rules and trading laws to run a business successfully in the foreign country.      

3. Currency rates –

Which is one of the major obstacles and remained the central focus of the businesses to monitor it properly. It is very difficult to deal with when the currency rates are fluctuates irregularly and which impacts on the business expansion and profits.

4. Communications-

To establish and run a business beyond the national border need to adopt the local language- in order to understand the local needs and supply according to that. To get profit and to expand the business language challenges need to overcome.