There are many benefits of expanding into a market abroad. Among them is the opportunity to increase market share.
However, there are also challenges to access these new markets. Among them are;
Language barriers
Differing cultures, taste and preference
Legal controls and taxes - each country has their own legal standards and law
Foreign Exchange risk
These problems can be overcome if the firm;
Uses local contacts
Only assemble and sell products in that market
Through franchise or licensing
Joint venture with a local company
Takeover or merge with existing business in that market
Adequate market research
RELATED CONCEPTS
Market Share
Marketing Strategy
Organization Type
Communication
Legal Controls
Foreign Exchange
Location Factors
PAST YEAR QUESTION
Do you think a firm should start selling its products in other countries? Justify your answer. (6 marks) May/June 2019/12