Recommendations To Start a Business in a Foreign Country

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Singapore as a country selection holds some disadvantages as well. First, Sysco will face the challenge as a food distributor some resistance to exporting their goods for Food safety concerns. The Singapore government holds “strict public policies of food safety’ (MacLaren, 2006), which is a good regulation to have, but also as a new company entering the country, the rigorous initial inspection may elongate the exporting into Singapore. There also exist the issues of strict legal liabilities, if they were ever to arise, and the lack of rules and regulations to an unknown jurisdiction. Lastly, huge local presence , such as China, Taiwan, etc, presence very competitive completion, as already established presence in the area that can also provide lower cost options for the same products. South Korea presents a great potential for organization looking to start business in it. Like any other country, it has advantages as well as disadvantages to starting a business. One advantage is that it appears that the government is will to reduce export tariffs that are. According to research by Kumuro, “A change-in-tariff- classificati on test focuses on whether the manufacture of the good in the exporting” (Kumuro, 2009). The country’s leadership has also made great progress in allowing free exchange rates, which has made trading with S. Korea a little bit easier versus business relationship in the past. South Korea has many Disadvantages that make it very unfavorable as an option. This is primary due to strong Government controls and regulations that are in place and also strong preference to keep business to those that are native to the country versus an outsider. What is also found is that there is a strong “FTA Party or Free Trade Ag... ... middle of paper ... ...nities, and business relationship/joint venture opportunities as well. Last recommendation is to start out with small exports into desire host country. This will to establish several things: First it helps to determine how the market responds to the products that are being exported. Second, it helps to establish a relationship and cultivate relationships with the local community (businesses and residents) by slowly bringing in exports versus overwhelming the community with huge influx of products. This is an absolute imperative strategy as it helps with overall cost by not bringing into the local market what it may or may not need and also allow Sysco to be better received. By strategically starting off small, while building relationships, this can lead to a possible joint venture with a local organization within the country and also outside established perimeter.

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