Describe each of the major issues and considerations an entrepreneur must address when launching his or her product or company in a new country.

Question

What will be an ideal response?

Answer 1

Physical vs. Psychological Closeness: identifying how similar are the cultural, political, legal, and economic systems in a firm’s home country versus its foreign outlets and then whether or not the psychological closeness actually makes a foreign market the best opportunity for the venture. An entrepreneur must consider if:
The physical and psychological proximity is based on reality or perception.
Psychological proximity can make a market easier to enter and can help the entrepreneur identify the first foreign market to enter.
Similarities with entrepreneurs in the foreign market exist, since there are common bonds amongst all entrepreneurs.
Strategic Issues Regarding Management and Organizational Structure:
The allocation of responsibility between the U.S. and foreign operations.
The nature of the planning, reporting, and control systems to be used throughout the international operations.
The appropriate organizational structure for conducting international operations.
The potential degree of standardization.
Environmental Analysis:
Characteristics of the market in each country and whether or not countries can be grouped together to form a larger market.
Strategic Planning:
Whether a company’s current products meet the demands in the new market(s) and deciding if a new product should be developed or introduced.
Purchasing power in the new market(s) and how affordable are the company’s products.
Banking and payment structures within the new market(s) and what method(s) will be used to extract profits from the country.
Operational Program:
Selecting the right products, distribution channels, pricing etc.
Marketing
Establishing measures to judge if the marketing program is successful.