Question 2

1. Culture

The cultural difference can determine whether the business is successful or not. If the
product or service doesn't add value or meet the desires of the local markets, there's
no need to go sailing! It is vital to have an intimate understanding about who lives in
the community and what they value. Consider the following:

Knowing how to conduct business among the "local" markets is extremely important.
Do not underestimate the effects of cultural differences. You must be willing to invest
significant time and energy in order to pursue an overseas venture. Seek first to
understand the culture.

Legal and regulatory barriers

Conducting business in foreign markets is achievable if the business is flexible

enough to work within the local laws and regulation guidelines. Review aspects such
as:

When reviewing legal and regulatory commitments, it is highly advised that you seek
experienced legal counsel for overseas business practices to identify hazards that may
cause barriers for your business. Don't skimp on the cost of using overseas expert
legal counsel, it can save you in the long run.

Foreign government consideration

The stability of the local government and its authority are very important when
reviewing overseas business options. Aspects to consider are:

 Currency exchange rates

 Access to needed resources and materials
 Communication and transportation options
 Government assistance programs for businesses
 Access to affordable capital
 Protection policies for businesses
 Immigration and employment Laws

Government stability holds the key to contract integrity, employee security and
rights, trademark and intellectual property and many other facets in conducting
business. Make sure to seek "local" expertise over the political and business factors
before entertaining any overseas expansion.

Business case

It is essential that the business case responds to the challenges, adversity and
rewards of expanding overseas. Some strategies to consider are:
 Perform a market study to understand the market's personality, economic feasibility,
market trends, financial cost patterns and market forecasts
 Do a financial feasibility study to determine if the move makes financial sense
 Intellectual property and trademark protection, and making sure the governmental
authorities in that location recognize and protect the businesses proprietary needs
 Partnership and liaison relationship development – seek guidance and opportunity by
engaging in a "local" partnership with an existing client or supplier

Expanding into unchartered foreign market waters can be lucrative. However, it can

become a nightmare. In addition to the four aspects discussed, you can reach out to
the American Chamber Abroad, an affiliate of the U.S. Chamber of Commerce are
located worldwide. Don't be a casualty, be prepared for clear sailing!