Checklist for International Expansion.

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A- Do you agree with this list? What do you like/dislike? What would other items would you add, or what would items would you drop?

For Instructional Purpose

Here is a checklist of ten points for you to follow when taking the decision to enter new international markets.

1. Start by defining your motives for going international.
I certainly agree with this statement. A business aiming for success in its global expansion must have a goal or objectives for wanting to enlarge its business boundary. Without reasonable goal or objectives, a business's international expansion would have no pathway or blueprint to conduct a logical strategy nor arrive at a profitable business. Therefore, I like the idea of a business's ability to define its motive before expanding globally. An example of a good motive would be going international to look for opportunity to increase customers (target markets), boost revenue and earn higher profits.

2. Have you researched your markets?
I surely agree with this question. Competent analysis of the global market a business anticipate to expand to is a necessity. This is important to gather information about the external business environment (threats) a foreign business could encounter in a host global market. For example, analysis of factors in the host global market such as: (1) Political stability, (2) Historical fluctuation of its exchange rate, (3) Saturation of the specific industry of the business with strong competitors are necessary to prevent sunk cost of investment in expanding internationally. For example, a global nation with political instability often go into riots whereby foreign business properties are first targets for destructions. Considering that any prudent business would not want to lose money, I like the idea of researching prospective global markets before a business makes a decision to establish there or not (weigh the pros and cons). It would not be a wise idea to establish a business in a nation with constant political instability because of the high degree of certainty of financial loses.

3. Have you looked at all alternative methods of market entry?
This is a sensible aspect to consider before making a decision to establish a business in a foreign nation. Acknowledging that there is no 100% guarantee that a business would achieve its planned objectives for its business in a foreign nation, it would be a good idea to consider alternative methods of entry that could avert or decrease loss of capital investment (just in case things do not come out as planned). Good alternative methods of market entry would be: (1) Use a cost-effective method of internet presence through connection with the internet service provider(s) of the foreign host market to launch the sales of the business products and (or) services (P&S) in the foreign host market, and (2) Form partnership with existing businesses with integrity in the foreign host market to help sell your business's by agreeing to a win-win contractual agreement. The two mentioned methods would greatly reduce expenses and allow a foreign business to monitor the acceptability, sales, revenue and bottom line of its P&S before deciding on physically establishing (if necessary) its ...