International market provides a wide range of opportunitiescompared to the domestic market, But global business isinherently more risky than domestic business. However , the firm prefers to go international, if the perceived benefit outweigh theanticipated risks. Companies going global would like ti gain fromthe perceived benefits and minimize the risks or threats to whichthey are exposed. Firms going overseas can be both reactive and proactive to the environment.FOREIGN MARKET ANALYSISInternational business firms, have the fundamentalgoals of expanding market share,sales revenue andincrease in profit. Expanding markets in overseascountries is one of the strategies to achieve thesefundamental goals. The firms have alternative foreignmarkets to enter .in order to achieve these goalssuccessfully, the firms have to (1)analyze alternativeforeign markets (2)evaluate the respective costs, benefits and risks and select the foreign market thathold the most potential for entry.
Analyze Alternatives Foreign MarketsThe firm has to analyze the alternative foreign markets by thefollowing factors into consideration: Current and potential size of the alternative market.Level of competition the firm will face in each of thesealternative markets .Legal and political environments.Socio-cultural environment.Market potential :
ENTRY SRATEGIES OF MARKET3