Question

What global and international considerations should be made when conducting business?

Answer 1

For going global following considerations are very important

Culture

Product or business should meet the desires and values of ethical market . To be successful globally the business should give due respect to the cultural values of local people.

Example MC Donald's failed in India in beginning as it launched a burger containing cow meat. Cow is sacred for Indian people and people worship cow in India. So, finally McDonald's has to remove that item and launch a typical vegetarian burger which became popular with Indian people.

Legal and Regulatory Requirements

It is very essential that while going global a business should follow the legal and regulatory requirements of the country in which the business is going to be started. The services of highly experienced legal counsel should be used to become successful in global market.

Foreign and Government Consideration

Do a proper research regarding the stability of the government of the foreign country where business is to be done. Government stability holds the key to contract integrity, employee security and rights, trademark and intellectual property and many other facets in conducting business.

Keep a track record of following points

• Currency exchange rates
• Access to needed resources and materials
• Communication and transportation options
• Government assistance programs for businesses
• Access to affordable capital
• Protection policies for businesses
• Immigration and employment Laws

Economic Stability

Before going global it is very essential to determine the economic stability of the country in which business is going to be set up. The challenges, rewards and hardships that can be faced while going global should be taken into account.

Proper feasibility report highlighting the trends in foreign market, financial cost to be incurred, economic feasibility, market forecasts should be studied properly. Clearly study the growth pattern of the economy. Intellectual property and trademark protection, and making sure the governmental authorities in that location recognize and protect the businesses proprietary needs. It would be advantageous to liasion with a local partner or supplier in the beginning as this will help in getting familiar with the local trends and patterns.

To conclude entering into a foreign market is a risky affair but every risk brings more possibility of earning profits. The mantra should be to play safe and weigh all pros and cons before entering into foreign market and do follow all the laws and regulations of the related country.