As business leaders and citizens of the world you have a direct influence on the global economy. Your actions and the actions of your colleagues whether in the garage or in a boardroom will determine the future of the economy and businesses around the world. There is no field that demonstrates this potential more than global business that encompasses the potential and responsibilities of businesses which operate across borders.
A global company is present in a variety of countries through direct sales, subsidiaries or joint ventures, as well as exports to foreign markets. It also adapts its products and services to fit the cultural environment of a specific market. Moreover, it may be aware of the laws and regulations in different countries that affect its ability to do business there.
In addition to knowing the legal and political aspects of doing business, a business must be aware of the economics of one particular country. It is important to understand how to use data to analyze the country’s economy, its competitiveness, and growth opportunities.
Building trust with local customers is the most important factor to a successful expansion into a new market. This is why it’s important to establish an office or store in the local market, including having an office or store hiring local staff and developing relationships with local suppliers and partners. Companies that have local presence in the market also have an understanding of the regional business culture and the local business practices and can help come up with strategies to reach their intended market.