As business leaders and citizens of the world, you have a direct impact on the world’s economy. Your actions, as well as those of your peers in the garage or the boardroom influence the future of economies and businesses across the globe. There is no area that showcases this phenomenon more than global commerce which covers the challenges and opportunities for companies that operate across borders.
A global company is present in many countries through direct sales, joint ventures or subsidiaries, as well as exports to markets outside of its home country. It also adjusts its products and services to the cultural environment of a given market. Furthermore, it might be aware of the laws and policies of different countries that affect its ability to conduct business there.
In addition to understanding the legal and political aspects of business, companies must be aware of the economics of a certain country. It is essential to understand how to use data to evaluate the economy of a country, its competitiveness, and growth opportunities.
Building trust with local customers is essential to the success of expanding into a new market. It is essential to have an presence in the local market. This could mean having a physical office or store, hiring locals and developing relationships with local suppliers and partners. Companies that have an established local presence in the market also have a better understanding of the community and local business practices and can help develop strategies reference to reach their intended market.