A.

What are the factors you must consider before moving into an international
market?
Answer: International trade increases sales and profits, enhances a company's prestige,
creates jobs, and offers a valuable way for business owners to level seasonal fluctuations. It
creates enormous opportunities for companies to rise above its objectives and thrive. But to
be successful in an international market, one must first do proper homework prior to entering
an international market. Below are 10 factors to consider before moving into an international
market to be successfully operating there:
1. Regional Values: Companies should examine a country’s focus on its regional
values and how ethnocentric the people are so that business model can be
redesigned to generate maximum profit.
2. Language: Language, more specifically translation, needs to be paid very close
attention to when doing international business. Because if one company wishes to
operate in an international market, it needs to connect with its consumers and if
the language barrier exists, the connection won’t be made properly. These types
of language problems are funny to an outsider but can spell financial disaster for
one’s international business if one is not careful.
3. Consumer habits: Companies need to offer products or services which has value
for the residing consumers who are habituated to different patterns.
4. Relevant class structure: Different countries have different class structures they
follow and these vary greatly from country to country. Each class behaves in a
different way so companies need to analyze and decide which class to cater to and
if it is possible to cater to or not.
5. Legal permissions and restrictions: Companies need to know the host country’s
legal obligations in order to work efficiently and not create financial hassles in the
process of operating.
6. Quotas and Tariffs: These trade barriers are different in different nations and it
is very important to understand whether profit can be generated in a country
within these legal structures or not.
7. Political stability: If a country is politically unstable and one is trying to enter
that country, chances are that the decision would be harmful for the one. It is best
to first do homework on its political conditions before entering a host country.
8. Environmental concerns: Each country has unique environmental behavior and
one needs to know about it before operating there.
9. Supply and Demand: These days a company has to take a deeper look at
potential markets than ever before because just about anything will sell if you
market it the right way and in the right place.
10. Currency risk: There are always risks when doing business in the currency of a
foreign country. If one has one’s money tied up in a foreign currency and
economic events fall just right, one’s company could stand to lose millions. 
 [ CITATION Ana15 \l 1033 ]

B. What should be the size of your investment when you decide to move to an
international market?

Answer: The topic of foreign direct investment is an important one as it is a determinant

of the success of a business that will be operating in an international market. It is
generally argued that the very reason for a firm to become multinational is ‘intangible
assets’ possessed by the firm. These assets may represent technology, managerial skills,
or know-how. Since there is no direct measure for such intangible assets, economists use
some proxies. The variables often used as proxies are R&D expenditure, advertising
expenditure, degree of product differentiation, and firm size. Among these variables, the
evidence from some previous studies indicate that firm size -- either measured by total
sales or total assets -- is probably the most important determinant of foreign direct
investment decisions whereas other firm attributes could be subordinated by firm size.

Thus, the size of my investment will depend on the size of my firm and my objectives for
the expansion.

C. What is the best timing of your investment?

Answer: One of the best ways to grow a business is by expansion. In most cases the need
for expansion is caused by growing demand for a product or service by customers. But it
can also be used by businesses to find new revenue streams, increase brand awareness or
stave off competition. While this is usually a carefully planned and thought-out process,
the timing could hinder the expansion from being successful. After carefully evaluating
possibilities through research and development and doing proper market research,
businesses can know if they are eligible to operate in a nation or not. If they are, it is the
best time to expand. As a business in a new market, one must determine the market share
one can achieve there. If one’s market share is projected to be high, then it indicates one’s
products will be preferred by the consumers. Thus, that is the indicator that the
investment is being made in the right time.

[ CITATION Jer18 \l 1033 ]

D. What are the mode of entries that allow you to move into the market?
Answer: When an organization has made a decision to enter an overseas market, there are a
variety of options open to it. These options vary with cost, risk and the degree of control
which can be exercised over them. Each mode of market entry has advantages and
disadvantages. Firms need to evaluate their options to choose the entry mode that best suits
their strategy and goals. Below are some of the entry modes which allow on to move into
international market:

1. Exporting: Exporting is the most traditional and well established form of operating in
foreign markets. Whilst no direct manufacturing is required in an overseas country,
significant investments in marketing are required. The advantages of exporting are that it
is less risky than overseas based manufacturing and that it gives an opportunity to "learn"
overseas markets before investing in bricks and mortar and that it. The disadvantage is
mainly that one can be at the "mercy" of overseas agents and so the lack of control has to
be weighed against the advantages.

2. Piggybacking: Piggybacking is an interesting development. The method means that

organizations with little exporting skill may use the services of one that has. Another
form is the consolidation of orders by a number of companies in order to take advantage
of bulk buying.

3. Countertrade: By far the largest indirect method of exporting is countertrade.

Competitive intensity means more and more investment in marketing. In this situation the
organization may expand operations by operating in markets where competition is less
intense but currency based exchange is not possible.

4. Licensing: Licensing is defined as "the method of foreign operation whereby a firm in

one country agrees to permit a company in another country to use the manufacturing,
processing, trademark, know-how or some other skill provided by the licensor".

5. Joint ventures: Joint ventures can be defined as "an enterprise in which two or more
investors share ownership and control over property rights and operation". Joint ventures
are a more extensive form of participation than either exporting or licensing.

6. Greenfield Investment: The most extensive form of participation is 100% ownership

and this involves the greatest commitment in capital and managerial effort. The ability to
communicate and control 100% may outweigh any of the disadvantages of joint ventures
and licensing. However, repatriation of earnings and capital has to be carefully
monitored. The more unstable the environment the less likely is the ownership pathway
an option.

7. Acquisitions: An acquisition is a transaction in which a firm gains control of another

firm by purchasing its stock, exchanging the stock for its own, or, in the case of a private
firm, paying the owners a purchase price. In our increasingly flat world, cross-border
 acquisitions have risen dramatically. In recent years, cross-border acquisitions have made
up over 60 percent of all acquisitions completed worldwide. 

8. Franchising: Franchising enables organizations a low cost and localized strategy to

expanding to international markets, while offering local entrepreneurs the opportunity to
run an established business.

9. Strategic Alliance: A strategic alliance (also see strategic partnership) is an agreement

between two or more parties to pursue a set of agreed upon objectives needed while
remaining independent organizations. A strategic alliance will usually fall short of a legal
partnership entity, agency, or corporate affiliate relationship.

[ CITATION Cha \l 1033 ]

References
Anastasia. (2015, September 2). Factors to Consider For International Marketing. Retrieved from
CLEVERISM: https://www.cleverism.com/factors-to-consider-for-international-marketing/

Chapter 7: Market Entry Strategies. (n.d.). Retrieved from

http://www.fao.org/3/W5973E/w5973e0b.htm

Diamond, J. (2018, May 4). When Is the Best Time for My Company to Enter a New Market? Retrieved
from Entreprenuer ASIA PACIFIC: https://www.entrepreneur.com/article/311929