BRIGHT FUTURE TOOTHPASTE

OPPORTUNITIES

 Access to New Customers

Canadian businesses entering into international markets have the opportunity to compete in a
more diversified environment and access new customers. Canada is ranked at 0.5 percent of
the total population of the world. Providing and selling services and goods to other 95 percent
would be very beneficial and appealing for Canadian companies (Canadian Manufacturers &
Exporters (CME) , 2016).

 Lowering Costs
Further, offshoring has become a prevalent means to try to reduce the costs. In this way,
Canadian businesses can relocate their business activity to another country and new operations
can be created in other countries like India and China that proposes cheap labor and can help
to reduce costs. Further, many companies can gain cost advantage by introducing and selling
their products and enhancing sales volume can lower their average and overall costs of
production (Canadian Manufacturers & Exporters (CME) , 2016).

 Diversification of Business Risk

The business risk involved in operating one market also reduces by entering into foreign
markets. Business risk denotes that potential risk that an operation may flop and if a company
is entirely reliant on one country, from market and supply perspective, political, natural
disasters or negative economic factors in that country can cause noteworthy exertion.
Therefore, the entrance in international markets help them to access new markets and operate
in various economies that reduces the failure of operation because the business is operating in
various markets (Canadian Manufacturers & Exporters (CME) , 2016).

CHALLENGES

 Political Risks
Political risks refer to as the potential for government disturbance and intrusion with business
to damage a business entity within a country. Entering into new markets can cause a challenge
for the companies because of the political instability of international markets, military takeover,
outright was or terrorist insurrection are the risks and challenges that Canadian companies can
face while entering into international markets. The unstable governments linked with these
challenges and uprisings make it difficult for the companies to plan it for future. Further, the tax
controls and new regulations are also a challenge for the Canadian companies entering into
international markets (Global Affiars Canada, 2016).

 Economic Risk
Another challenge that Canadian companies can face by entering into international markets is
the economic risk that refers to the potential of the state’s economic policies and conditions,
protections, property rights, currency exchange rates to unfavorably impact the operations of a
firm. The executives of the companies might have to face tremendous challenges due to the
economic risks because of the unpredictability of economies.

 Cultural Risk
The cultural risk refers to as the potential of the operations of the company to struggle due to
the differences in customs, norms, languages, customer preferences, and other cultural factors.
This imposes a challenge for Canadian companies entering in international markets.

Sources: https://bohatala.com/opportunities-challenges-faced-by-canadian-businesses-in-
international-market/

RISKS TO BE FACED AS AN INTERNATIONAL BUSINESS ENTREPRENEUR

 Financial Resources
 Exchange Rate Fluctuations
 Political Instability
 Cultural Differences
 Compliance Challenges
 Locally competition
 Local Demands

Being an international business entrepreneur, it is important to take threats/risks as a

possible and legitimate obstacle because how many times we taught to us that it serves
development to export a product to other countries.