Question

Examining the articles “Foreign entry, cultural barriers and learning” and “The role of trade barriers in SME internationalization,” to what extent does global expansion have value as a corporate business strategy? What barriers might present the most difficulty to an SME? Why?.

Answer 1

.Business development in new countries has their own changes. Challenges faced by the existing business in new market place are cultural barriers, economic policy of countries, socioeconomic condition of countries, licenses .

Corporate business strategy is to get maximum returns in their investments. Corporate analyse business environment for their manufacturing units so that minimum cost occurs on manufacturing by finding minimum labor cost, easy to avail raw material at lower cost , easy licensing and lower taxes on foreign business investment.

Finding a new market place for their business is also part of corporate strategy. Learning of new market by knowing their cultural and socioeconomic condition for their business development is corporate strategy.

sme business is not as big as corporate , so that they get benefits at global market for low cost manufacturing and develop their product according to the countries culture.