Foreign Market Entry Strategy

International Business Management

[Name of the Writer]

[Name of the Institution]

International Business Management

Introduction

For any business that intend to work at the global environment, it is imperative to make sure that they work in the manner that allows them to make sure that they are making most of the opportunities at their disposal but also determine the prospects at the particular point of time. If the organization has no idea about the economic attractiveness of the place, then it goes a long way towards coming up with the business strategy that is likely to fail as it is fraught with the risks. In this paper, it is going to be seen what are some of the factors that have importance in the context of the international trade. The country that is selected in the given case study is going to be Bangladesh.

Relative Importance of the Different Factors

Market Factor

Relative Importance

Market attractiveness

35

Demand uncertainty

30

Country risk

20

Legal restrictions

10

Cultural similarity between home and host nation

5

Total

100

Rationale behind The Importance of Each of the Factor

One of the most important thing for the business is to make sure that the market in which they are operating at the given point of time is quite attractive and the different stakeholders that are involved in the broader decision making at the marketplace are working in the manner that make sure that the market should have enough charm in itself. Bangladesh is one of the most consumer oriented markets in the world and there is a fair chance that working in such a marketplace would be beneficial for the business. The other thing that is important that the demand for the product must be uncertain. Even though at times one can create the demand for the product, the major issue that has to be kept in mind here is that how reliable the marketplace is in terms of the volumes and how in the long run the business is going to be sustainable in those countries. The country risk then comes next where the amount of risk that is prevailing in the country is one of the major issues regarding how the marketplace is working out at the country at the particular point of time. Even though it is important, it is not as important as some of the other factors that are discussed in the given situation at the particular point of time. The legal restrictions and cultural consideration though at times are important, but if the business in terms of the way they operate and they bargain and market themselves in the right manner.

Other Market Factor

One market factor that is needed to be taken into account here is that how the economic situation and the financial sector is responding to the changes in the market at the particular point of time. The economic reasons are the exchange rate as well as the interest rate changes. These factors are always needed to be inculcated when any planning is done for the business and without this planning, chances of any business succeeding are on the lower side. Specially if one talks about the economy of Bangladesh.

Conclusion

Some of the reasons that are important for the business to sustain themselves in the international territory are discussed above. It is important to take note that how the financial and economic conditions of the country are important when these decisions are needed to be made as it goes a long way towards making sure that how the determination of the right factors that are going to allow business to sustain itself in an appropriate manner for the given point of time.

References

Ball, D. A., McCulloch, W. H., Frantz, P., Geringer, M., & Minor, M. (2016). International business: The challenge of global competition.

Miller, K. D. (2016). A framework for integrated risk management in international business. Journal of international business studies, 23(2), 311-331.

Schuler, R. S., & Welch, D. E. (2018). International dimensions of human resource management. Wadsworth Publishing Company.