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INTERNATIONAL BUSINESS CHALLENGES AND OPPORTUNITIES

Updated on October 9, 2011

The pressure of change in the NEDs also presents vast opportunities for the expansion of international business activities. Their large populations offer potential consumer demand and production supply unmatched by any other region in the world. Further more the knowledge of the international manger may be particularly useful to these economies where business skills are only rudimentary. These countries need assistance and contacts to reshape their domestic economies and penetrate foreign markets. For example, Russia is asking for help in areas such as business and personnel training, marketing, banking, auditing and compilation of statistics.

Of major concern are the limitations placed on goods that can be sold to emerging market economies. Although export restrictions have been eased in light of political developments, the international manager needs to consider the current and future political environments when planning long-term business commitments. A second major challenge is the lack of information about end users. Business strives to satisfy the needs and wants of individuals and organizations. Unable to ascertain their desires directly, the international manger must use secondary information such as hearsay educated guesses, and the opinions of intermediaries.

Another major difficulty encountered in conducting business with these countries is the frequent in availability of hard currency. Products, however necessary, often cannot be purchased by emerging market economies because no founds are available to pay for them. As a result many of these countries resort to barter and counter trade. This places an additional burden on the international manager, who must not only market products to the clients but must also market the products received in return to other consumers and institutions.

Similar problems are encountered when attempting to source products from emerging market economies. Many firms have found that selling is not part of the economic culture of these countries. The available descriptive materials are often poorly written and devoid of useful information. Obtaining additional information about a product may be difficult and time-consuming.

The quality of the products obtained can also be a major problem. In spite of their great desire to participate in the global marketplace, the NEDs still tend to place primary emphasis on product performance and to a large extent, to neglect style and product presentation. The result is a willingness to leave equipment rough and unfinished when a lack of finishing does not significantly affect function. Therefore, the international manger needs to forge agreements that require the manufacturer to improve quality, provide for technical control and ensure prompt delivery before sourcing products from emerging market economies.

Even when satisfactory products are obtained from emerging market economies, the marketing of these products elsewhere can be a major problem. One study revealed negative attitudes toward products sourced from emerging market economies---particularly consumer products. International mangers may well ''find a portion of the population (in the United States) hesitant to purchase {such} goods.''

Nevertheless, sufficient opportunities exist to make consideration of these international business activates worthwhile. Emerging market economies do haveĀ  products that most instances, these tend to be industrial rather than consumer products, reflecting the past orientation of centrally planned research and development.

Consumer products may in time play a larger role. Lower labor costs and un some instances, the greater availability of labor may enable emerging market economies to offer consumers in free-market economies a variety of products at a lower cost. Due to their low cost, existing service capabilities may also present interesting international business possibilities.

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      jithin george 6 years ago

      nice article best of luck for your future

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