Foreign market entry Essay Example | Topics and Well Written Essays - 750 words

Foreign market entry - Essay Example In case of companies, there can a variety of strategies to enter into a global market thus expanding the scope of operations. Globalization is always a positive sign for those who are striving for it (Causes and Effects of Globalization, 2012). But here it is important to be noted that expansion of the operations by entering into the foreign global market is not possible for all companies. The expansion actually depends upon the resource availability of the firm. It is crucial issue that either the firm has enough resources or not. Resources play an important role in all decision making of any firm. Before going across the boundaries in a foreign market the firm has to decide its strategy that either it would export the goods in the foreign market or may acquire a local firm in the host country to start operations. Another option might be a kind of joint venture with a famous local firm of the host economy. There will be a slight difference between the acquisition of a local firm of host country or doing a joint venture with that same local firm. Whether adopt any strategy, the important point is that the result will be growth of the firm in either case (Lynch, 2013). After consideration of all the resource availability and other strategies now the point comes that what will be the factors which may affect any firm’s decision of globalization. These factors include a long list of all the possible components which may affect a firm’s operations whether local or global. These factors may be country specific or even sometimes industry specific too. There may be certain Government rules and regulations which are not feasible for any small company. In such cases the company may not expand its operations though it may possess enough resources. Similarly there will be many other policies and rules which any firm must have to obey in order to enter into the local market. Though many economies are working on it and many of them have also revised their trade rules