Respond to the following: Discussion topic 2: What are the country factors that influence and organization’s decision to enter that country? What is the impact of the culture and geography on the organization’s value-chain activities being relocated to the country? Country factors include the stability of the local and national government of a country which are extremely important. An unstable government may not be able to continue policies or contracts. It might not also be able to maintain employee rights, safety, and intellectual property. For example, it would be prudent to explore business opportunities in the Ukraine due to the current political situation with Russia. The regulatory environment and legal implications should also be explored. If the regulatory environment is not conducive to new businesses, a company may not succeed. This can include a country’s communication, transportation, technology infrastructure, employee educational level, regulations and immigration laws which should also be reviewed (Abner, 2015). When a company decides to expand its market internationally it must ascertain if the product can be purchased by the residents of the country. If it is too expensive and there is not a population with sufficient income to regularly purchase the item, the incursion into that market at that price will fail. The item may have to be modified to make it economically feasible to remain in the country. The company should analyze the balance of payments, GDP, trade patterns and currency stability with assess the economic stability of the country. The tax structure should also be examined to assure that the company can remain profitable. The overall market size and competitive environment also need to be reviewed to assure that there is sufficient need for the item and limited competition (Chand, 2014). The value chain of a product includes all elements from creation to the consumer. It includes design, production, marketing, and the consumer. Cultural factors are important to understand when venturing into a new international market. Culture includes language, religion, practices, and food preferences. If the item is not valued, conducive or amenable to a country, entry into that market will not be successful. Language is an important factor to communicate to the employees, consumers, and the community (The value chain, .). Geography also impacts the value chain. The value chain includes the raw materials necessary for production. The availability and location of the raw materials is an important part of the chain. The raw materials may need to be transported to a production site, where the costs can vary depending on the distance between the sites and cost of energy. After the product has been manufactured it has to be distributed. These costs are also influenced by proximity and energy (The value chain, .).
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