- How To Do Opportunity Analysis For Your BusinessPosted 394 days ago
- How To Attract New Leads To Your BusinessPosted 394 days ago
- Role Of Technology In Modern Business SuccessPosted 395 days ago
- Tips On Buying Small Business Management SoftwarePosted 395 days ago
- Tips For Small Business Competition With Larger CompaniesPosted 396 days ago
- Benefits Of Online Computer Support For Small BusinessPosted 396 days ago
- 2 Ways To Improve Your Business And Make Money OnlinePosted 397 days ago
Costs Associated With Foreign Markets
There are many factors which bear a cost while trying to enter a foreign market. Here in this article we will list down some such factors which you must consider before entering global markets:
The first point is related to the difference in the time zone between your new office and your head office. This requires your key employees to adjust their working hours to match foreign market timings. Adjustment include working in the afternoons and evenings or else starting very early in the morning. To reduce the effects of the changing time zone you will have depend a lot on new & old technology tools (internet, phone etc).
You will also have to worry about the language even if the foreign market has an English speaking crowd. Technical jargon may be different from what is been used in the head office. Set up costs may also vary from country to country. There may also be restrictions related to the employment of foreign nationals and the need to employ local employees.
Other costs may be due to inflation, economic and political uncertainty. You will also have to think a lot before fixing your human resources policies for your new office. Holiday allowances changes in every country. France doesn’t have a week in May without a holiday. In Europe, August is a write off month as everybody is on leave.
Expatriates usually have to visit the foreign office during the initial few years of establishment. You may have to consider this cost too. Similarly bureaucracy is everywhere but it varies in degree from country to country. Less developed countries have more bureaucracy than others. More over you may see less committed workforce at all major government bodies there. What will you do to make your papers move?
Bribery and corruptions are part of usually all countries and their government offices. But it also raises ethical questions as well as practical considerations about what may be seen as a societal norm. Working in a new foreign office you may likely face many issues in quality and technical standards.
Rather than wasting time in negative responses you should concentrate on changing the degree of differences in standards. Other areas of costs relate to freight, warehousing and inventory handling.
The above cost factors usually come in to picture when you prepare for your international marketing campaign