What are the factors one needs to consider when planning to do business in any country of interest? For instance: GDP, Political Stability, and so on.
Demand for your product/service, level of competition (e.g. is your product/service better/worse), price level, economic policy (e.g. income and VAT tax rates, import taxes...), costs (transport, labor...), cultural similarities/differences...
Michael Porter in his analysis stragique to start a business in a foreign country or hers said it is important to take account of political factors (stability, political regime: democratic-communist dictacture etc) Economy (GDP, income, etc.) Social (young adult population-retired, culture, etc.)
Legal (the law on investment, entrepreneurship etc.) Ecological (cyclonne, global warming, etc.). all that is called PESTLE analysis according Michaael Porter
The Basic factors can be consider as following: GDP Growth, Political Institutions, Population size, Access to Market, Transportation Cost, Geographical locations.
A variety of factors have to be taken into account. First, you have check the way of life of the people and various activities in the area. This will inform you to choose a particular business that will be profitable to undertake. Second, you have to consider the available resources for the business (human resource, finance, logistics, transport, raw materials, energy etc.). These will give you a fair idea of the amount of business capital that you will need to set up the business. There will also be the need to consider the political atmosphere and available market for your business as those factors will also have impact on the demand and supply activities of your business.
Hi, there are many variables to consider, not only those related strictly to the market but all the institutional aspects and even those who go beyond the institutions such as the geographical distance.
Tips for Conducting International Business
- Think outside your norm.
- Find common ground.
- Communicate with proper online and in-person etiquette.
- Pay attention to cultural detail.
- Overcome personal barriers.
- Be mindful of potential misunderstandings.
- Becoming an international business expert.
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