GEB 3375 Chapter Notes - Chapter 13: Country Risk, Global Sourcing
Document Summary
A firm must assess a country to determine how much of a profit or loss it would receive from entering the market. When faced with a global market opportunity, a business sees possible benefits from investing, exporting sourcing or collaborating in a market. These opportunities may include 1 of the following. Customers that will purchase the firm"s products or services. Low cost/ and or higher quality raw materials. Global sourcing - suppliers selling low cost intermediate or finished products. Local partners willing to work with foreign business. When assessing a market, companies should perform a global market assessment. 6 steps for performing a global market assessment. Readiness, product stability, reduce choice, industry potential, sales potential: determine the business"s ability to internationalize. How ready is the company to move into the international environment. The following questions must be asked before moving into the international landscape. Has the company trained or hired employees who have the skills to operate internationally.
