As business leaders and global citizens as well, you have an immediate impact on the world’s economy. Your actions, as well as the actions of your colleagues whether in the boardroom or in the garage influence the future of businesses and economies around the world. Global business is a prime example of this, since it encompasses both opportunities and obligations for businesses that operate outside of national borders.
A global company has a presence in a variety of countries through direct sales subsidiary companies, joint ventures or partnerships and exports to international markets. It also adjusts its products and services to fit the cultural and social context of a particular market. In addition, it could be aware of laws and policies of different countries that affect its ability to conduct business there.
A company must also be familiar with the economics of each country. This is in addition to the legal and political aspects of conducting business. It’s important to learn how to utilize metrics and data to evaluate the country’s economy competitiveness, as well as opportunities to grow.
Building trust with local customers is essential to a successful expansion into a new market. It is vital to establish an presence in the local market. This means having a physical office or store, employing locals, and building relationships with local suppliers and partners. Businesses that have a local presence are more aware of the local culture and business practices. This will allow them to develop strategies to reach their audience.