Question

What do you see as the greatest challenges when building relationships with international businesses? Explain your answer. Whose responsibility is it to build a successful relationship when entering into an emerging market and why? What do you believe are the top five risks when entering an emerging market? Why did you choose them? What do you believe are the top five opportunities for entering into an emerging market? Why did you choose them?

Answer 1

Part A

Going global is a challenging activity in the existing firms. Suppose we are taking our firms into global-facing lots of issues in the domestic as well as foreign countries. The going global firms should prepare some common problems that existed in the international market. Such as,

The distance

The distance between the home and the foreign countries should find out by the firms. It is essential to make secrecy in terms of cost of shipping, freight and logistics.

Different culture

Another issue concerning going global is the diverse culture in various countries in the world. It should find out the culture and customers where we want to expand into? It will help the firms build successful customer relationships in the global market.

Expertise in marketing

Marketing is a vital strategy for firms to sell their product in the market. It should research the exact need of the customer and make an apt product in the market. Accurate market research will help the firms to sustain in the global market for the long term.

Tariff and export fee

There are different tariff strategy of the various countries in the world. It should need to find the lowest tariff countries to get more export revenue. To know the tariff structure of the country would help the firm to make successful financial planning in the future.

Human resources

Another critical challenge of global firms. It is crucial to recruit the best employees for the successful development of the business. Also, need some experienced existing employees to create a good working environment and also make successful business strategy in the global markets.

Choosing

Choosing the right countries and the right market is the other challenge of global firms. Without making the right decision for the exact country, it could make a loss in the firm.

Political issues

Studying the political environment of the exporting countries is vital for doing a successful business. Unfavourable political problems will hurt the firm to expand its product market in that particular country.

Part B

We know that the emerging market means that market has the characteristic of the developed market but not satisfy the conditions that existed in the established market. For entering the emerging market, it should do proper research about the market and political conditions. It is the responsibility of the manager and risk management team of the business. It is essential to have the excellent knowledge and experience of the emerging market. Usually, risk management professionals play a vital role in the company.

Part C

The growth of the emerging market is the new sign of development in the present world. While entering the emerging market, it is essential to understand the potential risk associated with it. I am choosing these five risk as essential because without knowing the exact conditions of the market will harm the business. Such as,

Political risk

Foreign exchange risk

Lack of financial liquidity

Poor corporate governance

Bankruptcy rick

Part D

There are lots of advantage in doing business in the emerging market. The emerging market will give us an immense opportunity of doing business with a little risk. The openings for doing the business are,

Cheap labor

Increased demand for a variety of goods

Less competition between the firms

Growing infrastructure

Better opportunities at the time of recession.