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Practical Application: Considerations for a Prospective Global Company

Instructor: Mary Matthiesen-Jones

Mary has worked around the world for over 30 years in international business, advertising, and market research. She has a Master's degree in International Management and has taught University undergraduate and graduate level courses .

Every day businesses move into new markets around the world. Apply your understanding of some key factors that businesses consider when thinking about expanding internationally.

Global Business Considerations

In the course Assessing Globalization Opportunities for a Business, you studied how and why businesses go global, as well as the legal and political factors that can affect international expansion. As you read the following scenario, here are some things to consider.

  • Economic systems are a reflection of a nation's political system and guide the regulation and support of businesses. What is the economic system of the country?
  • Governmental systems, like democracies or dictatorships, are the basis for the laws businesses must follow. What is the country's governmental system?
  • Trade agreements set the rules for conducting business between countries. Is the country a party to any trade agreements?
  • The political stability of a country is a key risk factor for businesses. Is the country stable or is there a risk of political instability?
  • Fiscal policy determines taxation. What type of taxation can a foreign business expect?
  • Monetary policy and a country's currency are connected. How will exchange rates influence the business?

Scenario

With these considerations in mind, analyze this scenario and then respond to the questions that follow.

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