Importance of Strategic Planning when Entering International Markets

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Importance of Strategic Planning when Entering International Markets When a company decides to take their business international, there are many different factors that they need to take into account. There are differences in management styles, international laws and treaties that regulate international business, trade barriers, tariffs, taxes, exchange rates as well as cultural customs that come into play. Each of these is significant and needs to be taken into account in order to minimize potential problems. It is essential to an expanding company to study these factors and integrate them into taking their business abroad. Many times, lack of knowledge can create serious problems and in some situations stop a business deal from happening all together. If such matters are not ever correctly dealt with they can completely destroy the entire business. All a company needs to do to reduce this risk is some research in the international market. Today it is difficult to completely stay out of the international market place. Even if a business is completely based in a specific country, it is very possible that another company outside their country supplies them. Even if there is a small company that is simply importing some parts from Mexico, there are rules that must be met for NAFTA. It is almost impossible today for a company to avoid dealing with international issues. That is why all companies should have some understanding of international business. When first discussing international business, one must realize how beneficial international trade is to the world. Trade amongst countries has been growing very rapidly since the end of the Second World War. One way of looking at international trade is the simpl... ... middle of paper ... ...se Expatriate Managers in Canada.” Journal of International Business Studies 27 (1996): 443-466. 9. Robicheaux, R. A. and Bandyopadhay, S. “Working With Dealers in India.” Journalof Managerial Issues 7 (1995): 379-402. 10. Saimee, S. “Costomer Evaluation of Products in a Global Market.” Journal of International Business Studies 25 (1994): 579-604. 11. Simos, Evangelos O. and Triantis, John E. “International Economic Outlook.” The Journal of Business Forcasting Methods & Systems 18 (1999): 32-36 12. Srinivasan, T. India. New York: Marshall Cavendish Corporation, 1994. 13. “There’s No Such Thing as Simple in International Business.” Agency Sales 29 (1999): 4-6 14. Walter, Ingo and Murray, Tracy. Handbook of International Business. New York: Ronald Press Publication, 1982.

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