So we talked about globalization, but let's really consider it. What makes the world flat? Simply, entrepreneurs and business owners who have the guts to enter foreign markets.This is how we are able to purchase items from other countries, this is why name brands are fame brands all over the world. This is the very reason to why the world is getting flatter and flatter everyday.
Now this isn't some everyday occurrence, entering a foreign market. There is a lot of liability that can go with this; it can be a huge risk. First, you have the liability of foreignness. A firm can experience a huge disadvantage being in a foreign country. Language barriers, business culture, everyday culture, the sheer fact that you are away from your home. Not only are you away from your home, you are away from your comfort level. When you are put into an uncomfortable position, you are more weary on the decisions you make for your company. You must stay firm to be a strong firm. Another huge disadvantage is discrimination against foreign products. The United States does it often with many people saying "Buy American". You are considered unpatriotic if you buy anything but a Ford for a car. I found an entertaining video on youtube that is a perfect example of this: http://www.youtube.com/watch?v=Vq8wbXAR4ZQ.
Many questions arise when looking to enter a market. One of the most important: Location, Location, Location! The saying never gets old because it stays so true. Other things to be considered is what are the strategic goals of the firm and what are the cultural and institutions distances. Many questions need to be answered before taking this risky but possibly very rewarding venture.
If you really take a chance and look at all the products we have available in the market, it's incredible to see so many products there are from other countries. It's just as astounding to realize how popular US brands are in foreign markets. The ability to enter foreign market has helped the consumer industry in many ways.
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