Foreign - Assignment Example

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The possibility of expanding business horizons to even cover other foreign countries becomes even more pleasant for most companies since this translates the company is up scaling to the apex of known…
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Download file to see previous pages costs, distribution, advertising costs and government policies are some of the many factors which mostly impacts on the success of a new business in a new country. Physical and demographic environment such as the population, its distribution and growth impact on a new business in that it determines the capital invested in establishing the business and quantity of production.
Economic environment goes a long way in analyzing the existing competitor and the availability of disposable income and patterns of expenditure (Hopkins 13). Cultural and social environment touches on a diverse range of factors. These factors which entail situations like education levels and literacy rates can detriment the success of a business in a foreign country.
Legal environment constitutes of government guidelines that foresee how trade is oparationalised on the day to day basis. This may include working hours which may vary from country to country depending on its governing legislations.Lastly, political environment also to a great extent impacts on business growth in a foreign country. Constant political turmoil scuttles security prospects which in the long run lead to eventual failure of the ...Download file to see next pagesRead More
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