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In: Economics

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

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

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Expert Solution

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.

Rahul Sunny answered 2 years ago
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