Question

Various factors or forces impact a company’s decision to go into a foreign market and affect the outcome of that decision. If a country or market has several factors in common with the original market, or with the other markets selected when choosing several markets, it will be easier to enter that market. If a U.S. software company that primarily creates and sells educational software wants to expand into two foreign markets, what factor commonalities (as found in your Learning Activities) should the company be looking for when deciding on the two countries? Provide two country suggestions and explain your reasoning.

Answer 1

The factor commonalities that the company should look out for when deciding on the two countries include

• Culture
• Intellectual Property Protection
• Legal and regulatory Barrier
• Business Case

Step-by-step explanation:

Various factors or forces impact a company’s decision to go into a foreign market and affect the outcome of that decision such as

1. Culture

The cultural difference can make or mar the business in question. If the product or service doesn't add value or meet the desires of the international markets and how it differs before taking a plunge.

2. Intellectual property and trademark protection is very necessary to making sure the governmental authorities in the participating countries recognize and protect the businesses proprietary needs

3. Legal and regulatory barriers

Conducting business in foreign markets is achievable if the business is flexible enough to work within the local laws and regulation guidelines. When reviewing legal and regulatory commitments, it is highly advised that you seek experienced legal counsel for overseas business practices to identify hazards that may cause barriers for your business.

4. Business case

Perform a market study to understand the market's personality, economic feasibility, market trends, financial cost patterns and market forecasts

Do a financial feasibility study to determine if the international trade between the two countries makes financial sense .

A good example would b a US software company and a Chinese Hardware company.

Answer 2

At the point when the organization is taking a gander at factors that decide if to extend in some remote market or not it takes a gander at the accompanying wide zones:

1. Culture: Whether the organization suits or adjusts the way of life of other nation or not is a significant issue. Regardless of whether the item that the organization brings to the table is giving any an incentive to the clients in that market is significant. Neighbourhood showcase information is critical to think about clients and contenders.

2. Lawful Barriers and Laws: It is profoundly essential to examine the lawful law and structure of the concerned nation and look whether one satisfies all standards and guidelines or not. One will check the adaptability of the standards and laws and whether one can be fit inside such a structure.

3.Foreign government: What sort of nature does the remote government holds is exceptionally significant. Regardless of whether the govt is inviting or not, whether there are appropriate arrangement for business gatherings or not as far as foundations and availability or not needs to be remembered. Government steadiness in every one of these cases assumes a vital job to take a gander at.

4. Numerous different variables like ecological reasonableness, economic situations, defilement levels and so on are viewed as while growing business abroad.

Two different nations that the organization can extend to is China and Japan. This is on the grounds that both the nations are well in accordance with the business condition of USA and both the nations likewise are progressed and along these lines would support the item for example instructive programming to be presented in their nations. Different factors as referenced above would likewise not end up being awkward for the US organization to grow business in these nations.