Foreign Market
What are the feasable reasons to enter the foreign market?
Expert
Problems with entering the Foreign Market:
The companies may not find feasible to enter the foreign market due to following reasons:-
• The cultural differences of the two nations are a major hindrance in entering the foreign market. For example- Chinese culture and US culture are extremely different from each other.
• Language barrier is a huge issue for many companies when they want to enter into a new foreign market.
• The working cultures of most of the nations are quite different. For example- Indians are ready to work even seven days a week while Americans work for only five days a week.
• Most of the companies are unaware of the legislation of the market they wish to enter which poses a problem for them.
• Superior technology may not be available which the company is use to working in. In such a situation they need to import all the resources from their home country inducing a heavy expense for the company.
• At times the citizens of the foreign market may not be welcoming to the company and its products.
As the law is ambiguous, business managers will often face decisions that will rely on their ethical judgments. Comment on this statement, be sure to use an example to elaborate.
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