What are the problems when growing your market abroad?

There are many benefits of expanding into a market abroad. Among them is the opportunity to increase market share.

However, there are also challenges to access these new markets. Among them are;

1. Language barriers

2. Differing cultures, taste and preference

3. Legal controls and taxes - each country has their own legal standards and law

4. Foreign Exchange risk

These problems can be overcome if the firm;

1. Uses local contacts

2. Only assemble and sell products in that market

3. Through franchise or licensing

4. Joint venture with a local company

5. Takeover or merge with existing business in that market

6. Adequate market research

RELATED CONCEPTS

1. Market Share

2. Marketing Strategy

3. Organization Type

4. Communication

5. Legal Controls

6. Foreign Exchange

7. Location Factors

PAST YEAR QUESTION

1. Do you think a firm should start selling its products in other countries? Justify your answer. (6 marks) May/June 2019/12