Author:M. Azim Ulfati

Competing in the World Markets

Determine what action steps a manufacturing business would take to decide whether to trade with a foreign country. If this were a service business, determine what action steps might be similar or different. Prioritize three key factors for participating in the information economy on a global basis and provide your rationale.

I believe that business is a crucial and profit seeking activity for growth through providing goods and services for the economy of a nation. It is the exchange of product between buyer and seller.

In order to decide and make stable action steps toward business, participate and trade with a foreign country, extend the potential business of a company on a global basis, you need to incur additional costs and watch for action steps and key factors for participating in the economy on a global basis as the following.

Methods of doing business with foreign country like, ways of entering a foreign market, direct and indirect exporting and importing, licensing, joint ventures and off shoring production.

International business plans and decisions like importing and exporting strategies, markets and legal requirements.

Analyzing industry and business capabilities like preview of your current industry status today and prediction of your company for the next few years in domestic and foreign market, assessment of your business for it’s weaknesses and strength, your competition in domestic and foreign market, the needs that would need to be filled by your products in a foreign market, restrictions of your products in a foreign country and so on.

When you decided to seriously participate in foreign information economy business then you need to find out and prioritize the following factors for your trades and businesses with any foreign country.

Geographic and demographic factors like per capita GDP, population size, and infrastructures, human and natural resources.

Political factors like security and stability in the country, the relations and political differences of countries, trade obstacles or restrictions tariffs and administrative barriers and compacts.

Economical factors for example, currency exchange rate, stability, capital incomes, legal regulations and laws and inflation rate.

Cultural and social factors for instance, language, customs, traditions barriers, and education or literacy rate, background, religious and attitude values.

Market factors like trade barriers, limitations such as documentations, infrastructures, skills, country law, policies and regulations, high tariffs level.

Distribution and production factors like local labor laws and policies, manufacturing conditions, infrastructures and so on.

Any way at the end I want to say that it is very important for any business person to first determine about the expansion of market in which they want to do business and also which market to enter and find out the barriers or obstacles to foreign or international trade, key factors like tariffs, non tariffs, taxes, imports, key decisions and all the other above discussed steps and factors for a good and successful business on a global basis.