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Factors to consider when expanding into a foreign market

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What are some factors companies must consider before attempting to enter foreign markets?
Provide an example of a company that has failed when expanding overseas and why they failed.

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Solution Summary

This solution identifies factors that companies ought to consider before expanding into a foreign market, and provides an example of a company that unsuccessfully tried to expand and why their expansion was unsuccessful.

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There are many factors that companies must consider before attempting to enter foreign markets. These include: the economic system, the political and legal systems, socioeconomic factors, technological factors and competitive factors.

Economic System
When entering a foreign market, the company must consider the current economic state and system of the foreign country. They must determine the currency, and find if the market is a free trade market or more of a socialist market. This could help or hinder foreign trade.

Political and Legal Systems
When entering a foreign market, the company must research the political system that is in force ...

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