Pros & Cons of Going Global

Thanks to the internet, today nearly any individual can start selling products and services all across the world. Internet has broadened our horizons and made the world a small place as we have news, business and culture available from different countries of the world.

Buying and selling products and services in overseas markets offers great potential for business to grow and expand opportunities manifold. However, all these do not come without a risk. If a company is planning to set foot in the international market, it is important that it researches the market well. Here are some of the pros and cons of taking a business international:

Advantages

International Growth

Going global or entering an international market is like a dream come true for all businesses. The exposure that the business gets is not only in terms of revenues but also prestige. The business gets access to a whole new market and that increases the market share. It also improves the brand image as customers understand that you are here to do some real business. You also pay the way for new customers by expanding you business to a new country.

Spreading business risk

“Don't put all your eggs in one basket” is a famous proverb that we all have heard of and this holds true most in case of a business. When you expand business to a different country, you are actually spreading your business risk. Even if one country’s economy shows a downfall, you can bank on the other for giving you profits.

Free trade zones

A great benefit of going international with your business is that you can beat the Inland Revenue. There are many countries in the world where there are free trade zones and here you get tax incentives and many other benefits that make setting business up easy and a profitable option.

Disadvantages

Language and Culture

A famous example of language gaffe is by Chevrolet when it introduced its Nova model in Mexico as ‘no va’ in Mexican means ‘it doesn’t go’ and that surely isn’t good for the image of a newly launched car in the market. Language is a big challenge that all businesses face and this is where the need of business language translation comes into play. However, this is not the only challenge; cultural barriers also need to be eliminated. It is essential to work as per local customs and become culture savvy before entering overseas market.

Investment

Expansion of business does not come cheap and the last thing that you would want is to become bankrupt. The ride is not easy and more so when economy or the market turns against you.

Political and legal problems

Political stability is a prerequisite for opening business overseas. Also a sudden change in laws and business rules can harm your business and so make sure that you ready for that. Legalities differ from countries and you need to understand these regulations well. Hire the services of professionals to know these business rules and regulations of the country you are planning to setup your business in.

Expansion of business is a serious matter so measure all these pros and cons before taking the final decision.