Foreign Market

Some of the advantages of entering a foreign market are by lowering the production cost which will increase profit margins by selling their products at the same price. Availability of raw materials could contribute to increased cost efficiency by minimizing transportation cost to produce products and or transport their products. Some companies may increase their bottom line by seeking out labor in countries that are more technologically advanced such as in India.

Disadvantages could stem from economic and or political unrest in that country that they have moved to. Import and or export taxes and fees would impact the company's financial picture due to unfair or inappropriate charges from foreign governments. Culture shock with-in an organization may also exist if the HQ and or the administrative portion of that company is not appropriately trained for the cultural changes or challenges of operating in a different country.

As discussed earlier, some companies are unwilling to take risk that could send their company into a financial meltdown. The global economy would be the largest concern that a company should take into consideration when weighing the options in entering a foreign market. Will there product be world-wide marketable to produce revenue to cover the new incurred operational cost in a different country? Market research would need to be conducted prior to this endeavor.

When you look at current global markets, automobile manufacturing is a solid bet for a profitable product. With technological advances, cell phones and or smart phones is the product to watch in the global market. But with global warming and environmental conservation efforts underway, energy conservation is a product that is being pushed on all companies and around the world. Energy conservation companies will play an important role in foreign markets.