Major concern for international companies planning to do
business in the world’s developing economies is as
follows:
- Company Structure: The structure of the
organization is important to determine in order to stay competitive
globally and to decide the locations of the teams.
- Laws and Regulations: Understanding the local
laws and regulations of the country of business is crucial for
successful international business. It is very important to navigate
legal requirements and tax implication on trading in particular
country.
- Global pricing strategy: While doing business
overseas, setting prices for services and products becomes a
challenge and a major consideration to remain competitive. A
company must ensure profit before starting a business overseas.
Cost of shipping, labor, production, distribution and marketing
need to be considered.
- Payment methods and currency rates: While
trading internationally, it is important to determine payment
methods of the other country. Moreover, the fluctuations in the
currency rates is also a challenging tasks
A international manager can create opportunity out of
this concern in a following way:
- A manager should analyse all the locations where the company
need to set the teams in order to stay competitive in the
market.
- A manager should do a deep study to understand all the law
rules and regulations related to the trade before approaching any
country to do business.
- A manager need to develop strategies to make maximum profit
from the new business by considering and calculating cost of
shipping, labor, production, distribution and marketing.