starting and running a business in a foreign country
As our company is focusing on expanding globally, several articles have been presented and researched on the issues of doing business in a foreign country. The memo brings to your attention two original items that have been addressed concerning starting and running a business in a foreign country. The two articles include “Opening a Business” by the World Trade Organization, and the second article is, “The ABCs of Starting a Business Overseas,” by Michael Goodson Contributor of the Entrepreneur Magazine.
Article 1: Opening a Business Abroad by World Trade Organization
In this article, the focus is on the requirements and the processes of operating and handling businesses across the local borders. According to the article, experts interested in opening and operating businesses across the borders often face strict rules and regulations that they must follow or adhere to before they are allowed to proceed. The authors note that constraints depend on the nature of the business, the country of choice and the nature of bureaucracy of the state of selection as these are the primary factors that might hold back or push forward the dream of the organization in question (InterNations, 2017). Furthermore, the article also mentioned additional assets, knowledge of the local business world, and proficiency in the local language as crucial factors that must be included in the process and the decision making of doing business in a foreign country.
Every country exercises its own bureaucratic rules and regulations. Also, the article focuses on the importance of trading partners in the foreign country, and this includes the finding of partners whom one can run business in partnerships (InterNations, 2017). The report emphasizes companies wanting to do business abroad the need to realize that the company structures in the home country are different from those countries, and thus the company must decide on the arrangements to follow in doing this business.
Article 2: The ABCs of Starting a Business Overseas, by Michael Goodson
As in the first article, this article is concerned with the requirements for the sake of operating business in foreign countries. The global business expansion is not just a walk in the park, and thus experts have researched and mentioned the basics of expanding a local business into the world market. Based on personal experience, Goodson (2015) notes that starting up a business in a foreign country might not be just right for every business, and thus there is a need for all the types of businesses to consider their positions in the overseas markets of interest.
Goodson (2015) also understands and discusses the essential factors that a business must consider, and these include the infrastructure, which is the critical aspect to the companies to run efficiently. Before a company invests in another country, the organization must and should consider the availability of transportation, utilities, internet speed, political and economic stability as well as the weather patterns (Goodson, 2015). Secondly, communing with the locals is very important and essential. A business would be beneficial if the firm would be readily agreeing with the local community on culture and behavior. Therefore, Goodson notes that there is importance in a business understanding the local community in the foreign country that the company is planning to move to so that it becomes easier to operate and manage a business (2015) .