As business leaders and citizens of the world you have a direct influence on the global economy. Your actions, as well as those of your colleagues whether in the boardroom or in the garage influence the future of economies and businesses all over the world. Global business is a prime illustration of this dynamic because it encompasses both the responsibilities and possibilities for companies that operate across boundaries.
A global company is present in numerous countries through direct sales subsidiary companies, joint ventures or direct sales, as well as exports to foreign markets. It also adapts its products and services according to the cultural environment of each market. It is also likely to be familiar with the laws, policies, and practices of other countries that affect its ability to do businesses there.
In addition to knowing the legal and political aspects of doing business, a business must be aware of the economics of a certain country. It is important to understand how to utilize data to assess the economy of a nation as well as its competitiveness and growth opportunities.
The most important factor in successfully expanding into a new market is establishing trust with local customers. It is crucial to have an established presence in the local market. This includes having an office or a store, hiring locals and developing relationships with local suppliers and partners. Companies that have a presence in the local area have a better grasp of the local culture and business practices. This will help them come up with strategies to reach their target audience.