Question

Explain how the foreign market differs from the home and domestic markets

Answer 1

The foreign market differs from the home and domestic markets for the following ways:

• The foreign markets are subject to different social and cultural factors of the country, which makes it more difficult to understand.
• In a foreign market, the consumers might have different tastes and preferences because of cultural differences, the difference in demographic factors (such as average age, sex, educational backgrounds, family size, etc.)
• Different countries have different income level and state of the economy, which makes the foreign market different from the home or domestic market.
• Different countries have different political systems and political issues, which make foreign markets different from the home and domestic markets.
• Foreign markets are subject to different legislative frameworks and laws of the land. Therefore, doing business in a foreign market is significantly different from doing the same in the local market.