Question

briefly analyze the key issue that a company faces when it conducts international commerce ?

Answer 1

An international business offers global recognition to the product of a company. Along with this, there exists many risks and issues regarding international commerce. When a company wants to start international business it has to consider many factors such as

• Rules and regulations of the country.
• Location of the warehouse.
• Trasporting facilities.
• Availability of labor.
• Familiarization of global business strategies.
• Structure of the company.
• Market analysis of the country.
• Culture of the targeted customers.

International commerce requires thorough and detailed study of the new markets of its choice. If a company is operating in one country and being successful in its product, it does not ensure that the company will be successful in wherever it goes. Each market is different from one another. The company must have a good understanding of the fact that whether there is a need of their product in the targeted market. Then only we have to move to that particular market.

Availability of basic factors such as land, labor, raw materials, warehousing , transportation, communication facilities, etc are to be ensured. The company should obey the rules and regulations of that area (state / country). They must not cause any harm to the culture and beliefs of a society.

Another thing to be considered is the structure and location of the company. It is not possible to operate from the headquarters alone for making the company globally recognized. Subdivision of the company is needed. Sometimes this division is to be performed on the basis of location, otherwise based on production factors. When everything is done in the right way with a well defined planning, then the company can successfully run all over the world.