Why is it woth to expand abroad in a chosen country?

Why is it woth to expand abroad in a chosen country?

In which way? Which access strategy?

- Shares of Export, through an agent? a distributor? a representative office? or monitoring market? through a licensing agreement productive? through joint ventures? contract or equity? with minority or majority? through a branch? a subsidiary? a regional head quarter?

Where? In what area? According to what criteria?

- Example: Brazil, USA and so on. are of the continents, which was more favorable for our project?

When? What time?

- We need to provide for an exit strategy?

- Is there an advantage of the first move?

What opportunities offered by the country of destination? or foreign markets about:

- RESOURCES: quality and quantity of natural resources, materials and components, the quality of human capital, costs and regulations on labor regulation, technology, infrastructure, ports, airports, highways and commodities, the degree innovation in the country, access to credit and the cost of capital;

- MARKET : breadth, quality and growth of the target market in the medium and long term;

- INCENTIVES : tax and taxation, subsidies, infrastructure, etc .;

- STATE OF THE COMPETITION : degree of rivalry among competitors, bargaining power, barriers to entry.

Risks that may occur in an expansion phase?

- POLITICAL RISK : exposure of investors to destruction, expropriation or freezing of assets and property; restrictions on the transfer of credits, dividends, or cash for everyday tasks; exposure of employees to kidnapping, banditry, harassment; preferences and nationalistic conflicts;

- ECONOMIC RISKS : economic growth, GDP, GDP / capita, trade balance, inflation, exchange rates;

- COMPETITORS : cartels, corruption, local networks;

- OPERATIONAL RISK : infrastructure, business continuity and cost of energy, telecommunications, transport, suppliers.

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