Entry Into Foreign Market
Entry into Foreign Market
Rusty Buchanan
International Business Environment: ITB305
Professor Ernesto J Saborio
Strayer University
05 May 2013
Entry into Foreign Market Doing business on your own soil is challenging in itself, let alone in a foreign market. Initially a firm is at a disadvantage due to the liability of foreignness (Peng, 2011). The differences in regulations, languages, cultures, norms, and currency can make simple business transactions very daunting. A firm must do intensive research when embarking on conducting business in the foreign market. They must conduct value chain analysis, external environment analysis and answer the question, “Do we have the capabilities to successfully manage business in a foreign country?” The best practice for a company contemplating expansion into a foreign market is to learn about the culture, norms, religious beliefs, currency exchange and their way of life. Most cases having a local citizen to mediate or teach the company about the culture provide an easier transition and aids in gaining the trust of the local people. Establishing trust or a working relationship with the local people is the first step in becoming successful in a foreign market.
Cameron International Corporation Cameron International Corporation began as Cooper Cameron Corporation in Delaware in 1994. In 2006 the company officially changed its name to Cameron International Corporation (MarketLine, 2012). Cameron International is a supplier of flow control equipment for oil, gas and process industries around the world. The company operates in 300 locations in 50 different countries. Cameron International has done well in the international market. They certainly have the means and capabilities to be successful in any FDI provided the risks are not too great.
Risk Factors There are several risk factors that must be determined before a firm can successfully perform business in the foreign market. Myanmar is rich in resources and a
Rusty Buchanan
International Business Environment: ITB305
Professor Ernesto J Saborio
Strayer University
05 May 2013
Entry into Foreign Market Doing business on your own soil is challenging in itself, let alone in a foreign market. Initially a firm is at a disadvantage due to the liability of foreignness (Peng, 2011). The differences in regulations, languages, cultures, norms, and currency can make simple business transactions very daunting. A firm must do intensive research when embarking on conducting business in the foreign market. They must conduct value chain analysis, external environment analysis and answer the question, “Do we have the capabilities to successfully manage business in a foreign country?” The best practice for a company contemplating expansion into a foreign market is to learn about the culture, norms, religious beliefs, currency exchange and their way of life. Most cases having a local citizen to mediate or teach the company about the culture provide an easier transition and aids in gaining the trust of the local people. Establishing trust or a working relationship with the local people is the first step in becoming successful in a foreign market.
Cameron International Corporation Cameron International Corporation began as Cooper Cameron Corporation in Delaware in 1994. In 2006 the company officially changed its name to Cameron International Corporation (MarketLine, 2012). Cameron International is a supplier of flow control equipment for oil, gas and process industries around the world. The company operates in 300 locations in 50 different countries. Cameron International has done well in the international market. They certainly have the means and capabilities to be successful in any FDI provided the risks are not too great.
Risk Factors There are several risk factors that must be determined before a firm can successfully perform business in the foreign market. Myanmar is rich in resources and a
References: Peng, M. W. (2013). Global 2 (2nd ed.). Mason, OH: South-Western/Centgage Learning. CIA World Factbook (2013). East & Southeast Asia: Burma. Retrieved from https://www.cia.gov/library/publications/the-world-factbook/geos/bm.html KPMG (2013). New Regulations under the Foreign Investment Law released: Myanmar. Retrieved from http://www.kpmg.com/mm/en/issuesandinsights/articlespublications/articles/pages/articles-06022013.aspx Invest Myanmar (2012). Myanmar Foreign Investment Law. Retrieved from http://www.investmyanmar.biz/MyanmarInvesting.php?PageId=584 MarketLine (2012). Cameron International Corporation. (n.d). Retrieved from https://web-ebscohost-com.libdatab.strayer.edu/ehost/pdfviewer/pdfviewer?sid=0c20cb39-bd95-4455-a520-c8f583ed81d1%40sessionmgr104&vid=7&hid=125 Mapelcroft (2012). Five key business risks in Myanmar. Retrieved from http://blog.maplecroft.com/2012/02/07/five-key-business-risks-in-myanmar/