As business leaders and global citizens as well, you have an immediate influence on the global economy. Your actions and those of your peers in the boardroom or in the garage, shape the future of the economy and businesses globally. Global business is the best illustration of this dynamic because it encompasses both responsibilities and possibilities for companies that operate across borders.
A global company has presence in many countries through direct sales subsidiary companies or joint ventures and exports to international markets. It also adapts its products and services to fit the cultural context of a particular market. It is also likely to be familiar with the laws or policies of other countries, which affect its ability to do businesses there.
Alongside understanding the political and legal aspects of business, a business must be aware of the economics of a certain country. It is important to understand how to utilize data to study the country’s economy, its competitiveness, and growth opportunities.
The most important factor in successfully expanding into a new market is to build trust with local customers. This is why it’s important to have a local presence in the market, for example, having an office or store employing local workers and developing relationships with local suppliers and partners. Businesses that have a local presence have a better understanding of the local culture and business practices. This will help them develop strategies additional reading to connect with their customers.
