Question

1) Describe the four steps a firm should take when it is considering going global.

(short and concise plz)

Answer 1

Four steps a firm should take while it is considering going global are as follows:

1. Minimize language & cultural differences. To make your presence in foreign market, you and your employees need to either learn the local language or hire a representative who can guide and promote your business in foreign country. You need to have adequate information about the culture and beliefs of the local community of the country where you wish to expand your business in order to reduce the cultural differences which otherwise can hinder business growth.
2. Understand policies, rules and regulations of foreign countries. Every government has its own set of rules and regulations that companies need to follow when they are importing, exporting or manufacturing their goods into the foreign country. There are various legal considerations that must be taken into account before the expansion and production process can go underway.
3. Do complete research on foreign market. You need to do research in order to make sure that your ideal customers exist in your chosen market. Find out if there is enough need for your product or service, how likely people will purchase your product and then accordingly plan the scale of your business. You need to give enough time to do research on your possible potential markets so that predictions can be made with high accuracies.
4. Set up budget for going global. Keep in mind the fluctuating exchange rates and currencies while setting budget as they have significant impact on amount of capital invested. Also the business tax structures, import and export duties and government subsidies for the business must be taken care while setting budget for going global.