Initiating a business in your resident country is in itself a havoc task with lots of planning, formalities and various other aspects to be undertaken. But if you happen to decide to try your luck setting up your business in an offshore land these issue multiplies. Business is all about to drain your ideas in the right track with the right strategies, marketing capabilities, technical capacity coupled with your financial ability. A little plan before hand will certainly provide you with the better edge to prove successful in your start-up that too in a foreign country. There are ample opportunities in emerging markets across the globe where you can bet your money on and turn out to be a winner. Knowing the business practices and the business environment of that particular country of your choice plays a vital role to succeed.
The Political Environment
The administrative structure of the government needs to be understood in a subtle way for your business operation. There are Two party system what you are familiar with your are familiar the US and are also practiced in countries like Japan, Srilanka; Multiparty system exists in India, Germany, France and Isreal ; Single Party in Cuba, Vietnam or Dominant party in countries like Egypt, Malaysia, Singapore etc. Foreign policies like host country supports or discourages foreign investment. Domestic policies like proper support from the government, labor issues or policies that exist in the host country. International policies in regards to the kinship existing between the home country and the host nation, international governing bodies like the World Bank, IMF, GATT are all essential to be cooped up to confirm.
The Economic Environment
The world economy has undergone radical changes. There are great competition and every player provides something different to win in direct confrontation with their main economic rivals. Emerging markets, led by Brazil, China, India its measures by the size of the middle class, household consumption and GDP per capita.
The Cultural Environment
Culture, diversity like language, aesthetics, religion, education needs to be comprehended that could affect your business viability. Culture not only affects the diffusion process in general, but also exerts a great deal of influence on the adoption of the product in particular. A product suitable for one culture may be totally inappropriate elsewhere.
The Trade Environment
Import Policy including import restrictions, regulations and procedures , Export Policy and International licensing like the right to use its intellectual property, technology, patents, copyrights, brand names or trade names advice in advance to be undertaken.
Legal and Regulatory Environment
Host country enact certain laws to regulate the business of foreign companies. These include tariffs, anti-dumping laws , export/import licensing , investment regulations, legal initiatives and restrictive trading laws.
Handling of banking procedures and finances are different for different countries that should be taken due care off to accomplish in a foreign country. To conclude ,the ground work needs to be properly executed. Always remember slow but steady wins the race-The race to establish your business in a foreign country.