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International Business vs Domestic Business (Risks when a company becomes…
International Business vs Domestic Business
Risks when a company becomes internation
Political risks
Products may not be accepted by foreign governments
Foreign governments may be opposed to the country where the business was founded
Language bariers
Cultural barriers
Culture related to producs
Culture related to sales and marketing
Standard of quality
The worldwide customer may expect higher quality than domestic customers
Managing time zone differences
Overwhelming market research
Each countries customers has unique needs and expectations
Financial regualation
Product cost - can all markets afford it?
International Law
Tariffs
Regulations
Motivations for going international
Increase market share
Sell to the growing middle class in China and India
Access to new materials
Manufacturing closer to the materials may reduce costs
Compete globally
Logistics
Time to market
Product travel time
Cost of shipping
Products expiring due to time/temperature