Opportunities and Threats
Companies and investors look for opportunities that often require expanding beyond their borders. Therefore, a thorough analysis must be conducted to determine which opportunities are legitimate and mitigate potential threats to the company.
Read this chapter, which explains how a global company must consider opportunities and threats before making business decisions in international markets. As you read, think about one of your favorite companies. What opportunities and threats do they face in the global market?
Summary of Learning Outcomes
- What threats and opportunities exist in the global marketplace?
Domestic firms entering the international arena need to consider the politics, economies, and culture of the countries where they plan to do business. For example, government trade policies can be loose or restrictive, countries can be nationalistic, and governments can change. In the area of culture, many products fail because companies don't understand the culture of the country where they are trying to sell their products. Some developing countries also lack an economic infrastructure, which often makes it very difficult to conduct business.