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SuccessfulDomestic Company Goes Global

Thefuture of any business depends on its efforts to venture into the newmarkets. Businesses today strive to increase their profit levels byselling their products to the foreign market. However, it requirescareful planning and putting into considerations some of theimportant factors for this strategy to succeed. Therefore, this is anexploration of the sensitive areas of the business that a corporationshould note during the planning and implementation stages of globalbusiness.

Prosand cons of sending expatriate to foreign countries


Inmost cases, hiring a local professional is a challenge when anorganization wants to open an international office. The discouragingfactor is that these locals might not understand the whole scope ofthe company’s practices. Sending an individual who knows everyaspect and operations in the company will make it easier inrecruiting and training the local human resources for the business.Therefore having one employee who can help the organization inachieving these goals is worth than hundreds of the foreign laborforce (Kim &amp Tung, 2013).

Ina case where the target country has a limited local talent pool,sending professionals to such a country may help the company in bothcapital and asset management. While it might look to be costly in theshort run, it has long term benefits. It, therefore, implies that thecost of hiring local employees may be high and at the same time thereare consequences of hiring a professional who is not trusted by theemployer. Furthermore, Kim &amp Tung (2013) affirms that in a casewhere the infrastructure available in the business cannot be foundelsewhere in that foreign country, there are chances that localpeople may be able to deliver the desired amount of work and at thesame time.

Kim&amp Tung (2013) explain that some situations dictate that theoperations in a foreign office should obey to the ideals of the homemarket. From these business needs, it makes sense that sending a teamof expatriates can help the business to attain the desired level ofquality in the production and supply of the products in a foreignmarket. Such employees will make sure that all commercial operationsare compliant with the rules and regulations of the domestic office.


Insome cases, expatriates are expensive and problematic. Theorganizations may incur a lot of costs regarding traveling expenses,issues to do with visa, tax differences in the foreign country andother relocation allowances. In some cases, an employer might incurdouble or triple the costs incurred to maintain a local employee.There are related costs such as training expatriates on how toconduct the business on a foreign market. This activity might alsoinclude taking various foreign trips to expose such an employee tothe international environment (Paik, Segaud &amp Malinowski, 2002).

Thereis also a high burnout rate evident in firms that have attempted togo global before. From the research findings, many expatriates arecalled back earlier than anticipated especially in underperforming inextremely demanding jobs. Paik et al. (2002) affirm that major achallenge arises from different factors, for example languagebarrier, difficulties in coping up with a foreign culture, thefeeling of isolation from family and friends, and in some cases,health issues associated with the foreign country.

Accordingto Paik et al. (2002), many companies fear legal risks and costlyconsequences. Some organizations end up on the wrong side of the lawespecially when they do not act as per the immigration and permitrules and regulations. For instance, if the work permit expires, theforeign country declares all the business operations of such anorganization to be illegal. There are high penalties that follow suchillegal activities. At the same time, the immigration department ofthe foreign country may deport expatriates of a corporation if theydo not have proper documentation of staying and working in thatcountry.

Thisreport enables employees in an organization to know the underlyingactivities behind the move to venture into global business. It alsoallows the management to realize the benefits and challenges that anorganization is likely to encounter in its efforts of accessing theinternational marketplace.

Factorsto consider when going global

Doinginternational business has some aspects that are different fromcarrying out business transactions locally. These global markets havefactors affecting their way of trading ranging from economic,cultural to political and legal factors. The following include some elements to deliberate when going global


Languageis the first aspect to consider. The management should pay closeattention to the terms used in the foreign country. For instance, thecommunications and marketing departments should be careful with wordtranslations. In product promotion campaigns, marketers can avoidembarrassments and mistakes from inappropriate use of words. It isknown that a given market or country can have people from the samebackground but with different dialects. In a different case,interpretation of words may be significantly influenced by theilliteracy levels in a given region. While they sound funny to thepublic, such slight errors might make the company lose millions ofmoney and create a bad public image (Wild, Rose, &amp Han, 2014).

Regionalvalues and consumer habits should also be considered. A companyshould account for issues relating to accessing marketplaces thathave extreme regional differences from the rest of the customers. Forexample, a country might have two or more different cultural groupsthat consume similar products but have slightly different perceptionsabout the same. Therefore, culture and personality shape consumerbehavior (Wild et al. 2014).


Percapita income is the first economic factor to consider. Cavusgil,Knight, Riesenberger, Rammal &amp Rose (2014) report that the wealthof the country plays a significant role in determining target marketsand developing the best strategy for accessing the market. Forinstance, high-cost products might not move on a market found in acountry with low per capita income levels. This factor, therefore,enables the corporation to make effective management decisions onpricing of products in a foreign market.

Therelevant class structure cannot be ignored. When a business decidesto venture into international markets, it must consider the classstructure that varies from one country to another. Many countriesaround the world have the lower, middle, and upper class withdifferent numbers in each category. For example, in developedcountries, larger populations are found in the intermediate and upperclasses while in developing countries, a majority number lives inlower and middle categories (Cavusgi et al. 2014).

Anotheraspect to consider is the law of supply and demand. This principleplays a significant role especially in the marketing of the goods andservices around the global markets. The corporation, therefore, hasto carry out research on potential markets so that they sell theirproducts in the right way and at the right place and time. It createsawareness to the organization on the demand trends and pricefluctuations that might affect the profit levels of the enterprise inthe long run (Cavusgi et al. 2014).

Politicaland legal factors

Permitsand licensing are paramount. The only way for an organization to dobusiness in a foreign country is through the acquisition of relevantlegal documentations such as a business permit and license. In somecases, foreign companies incur high costs of acquiring thesedocuments as compared to the local firms. This strategy enables thegovernment to generate high revenue from the multinationalcorporations doing business in that country (Wild et al. 2014).

Thecountry laws also matter a lot. The legislation in some states mightmake it difficult or impossible for an international organization toaccess its market. For instance, some laws might demand that foreignventures should only own a limited percentage of market shares. Thismove is meant to help in the growth of the local businesses that inmost cases have a weak financial base.

Bestcountries for international business.


Thiscountry has a high and stable economy. Its projections still show thepotential for further expansions. It has strong support for smallbusinesses making it an excellent hub for entrepreneurs (Peng,2016).

Figure1: The potential of Denmark (Peng, 2016)


Thisnation has different types of industries and service companiesincluding the outsourced call centers and communications. The countryalso ranks higher in the agricultural production sector. Thegovernment has enacted laws to improve on trade and curb inflation.It has, therefore, become a concern to the international investors(Peng, 2016).

Figure2: The potential of Ireland (Ran, Liu &amp Wang, 2016)

Thecriteria to use when choosing an expatriate

Thecandidate must have an ability to deal with ambiguity. Expatriatesmust be competent when it comes to dealing with uncertainty. Theymust be able to work in a normal way when they are found incompromising situations. An employer might not be able to tell theemployees of the possible events and outcomes at their foreignoffices. Therefore they must have such capabilities of dealing withanything that arises (Ran, Liu &amp Wang, 2016).

Thepotential expatriate must also have patience. Settling and coping upwith the new environment always take time. For instance, it mighttake a while before getting a decent house, enrolling children in agood school, internet access, and setting and obtaining requiredidentification cards, even worse but sometimes interesting, learninga new language. According to Ran et al. (2016), employees who havepatience have an easy time during this stage, and they can deliverthe expected quantity and quality of work in the office. On the otherhand, those who lack patience have excuses for poor performance oreven opt to back to their home country.

Eachregional office or the market has its patterns and ways of doingthings. Therefore, those who are keen can be able to find best waysof carrying out the business operations. For instance, an individualis expected to identify trends in the dressing code, mode ofcommunication and even with managerial aspects such as the open doorpolicy and hierarchical setups. Ran et al. (2016) insist that it isof great importance if the assignees develop a keen eye and correctlyinterpret every aspect of life and everything that goes on aroundthem and at the same time do a comparison with how it used to happenin their home countries. From this analysis, they can be able to makethe best decision.

Beforechoosing expatriates, the company must ensure that the potentialcandidates can effectively receive and share information.Communication is the backbone of any business. Hence, its successdepends on this staff. With the desired skills, expatriates can beable to convey information in its intended form to the home officewithout altering its original message. In the long run, themanagement decisions based on the reported figures can make abusiness to thrive in the international marketplace (Ran et al.2016).

TheInternational market is dynamic in nature. Thus, an employee who isready to learn about the new trends and discovering new ways of doingbusiness is much better off than that who assumes to know everything.Furthermore, these assignees must be willing and able to adapt to thenew environment. Ran et al. (2016) conclude that his aspect requiresthe right attitude and mindset.

Howto encourage the selected employees

Careerdevelopment and advancement

Manyemployees take international assignments as an opportunity to meetnew challenges and improve on their professional and generalmanagement skills. Working in a foreign environment enablesindividuals to encounter new things within and outside their scope ofworks. It is the best platform for preparing an individual for apromotion to the management level, or into a more competitive andchallenging position. Therefore, it is a good thing to promise andgive promotions to potential expatriates.


Receivinga pay rise motivates any employee and those in particular who aregoing to work in a new environment. It can also be through otherincentives such as free accommodation, family medical care, and eventransport allowances. In some cases the employer might offer tofacilitate the movement of the whole family to the foreign country.

Theobjective of going global should be part of the larger business goalwith a proper emphasis by all the relevant stakeholders in the firm.The best way is creating a departmental head that will be responsiblefor the implementation of the plans and decisions made by the toplevel management. At the same time, the director of this unit shouldhave the mandate to report to the higher level management.


  1. Andrew Hallam`s book `The Global Expatriate`s Guide to Investing: From Millionaire Teacher to Millionaire Expat`- This the best guide dedicated to training expatriates on how to build wealth.

  2. “The Year of Living Danishly: Uncovering the Secrets of the World`s Happiest Country.”- This book talks about the author’s experience in the rural Jutland. Helen Russel was the author of this book.


  1. Selecting items to pack- carry what is necessary. The company will provide your new wardrobe.

  2. Accommodating a vehicle- the organization will provide proper means of transport both for official and personal use. You will not leave with your current car.

  3. Shipping or sell furniture- apart from office furniture the employer will purchase furniture for you from the local market in the foreign country. You will be free to choose from the available options within the budget.

  4. Moving pets- the organization will only accept to cater for the costs of maintaining a maximum of two pets. Furthermore, it will only allow medium and small sized pets.

  5. Accommodations for a family residing in another country- for two years, you may decide to move the whole of your family members (not exceeding five members). They can also enroll in education programs in the foreign country under our special incentive program that lasts for the same period that you will be on the assignment. Similarly, they will also be provided with a full medical cover.


Cavusgil,S. T., Rammal, H. G., &amp Rose, E. L. (2014).&nbspInternationalbusiness.Pearson Australia.

Kim,H. D., &amp Tung, R. L. (2013). Opportunities and challenges forexpatriates in emerging markets: An exploratory study of Koreanexpatriates in India.&nbspTheInternational Journal of Human Resource Management,&nbsp24(5),1029-1050.

Paik,Y., Segaud, B., &amp Malinowski, C. (2002). How to advancerepatriation management: Are motivations and expectations congruentbetween the company and expatriates?.&nbspInternationalJournal of Manpower,&nbsp23(7),635-648.

Peng,M. W. (2016).&nbspGlobalbusiness.Cengage learning.

Ran,A. J., Liu, X. B., &amp Wang, X. Y. (2016). Personality Trait andContext: An Investigation of Expatriate Adjustment. In&nbspProceedingsof 6th International Asia Conference on the Industrial Engineeringand the Management Innovation&nbsp(pp.971-980). Atlantis Press.

Wild,J., Rose, M., &amp Han, J. C. (2014).&nbspInternationalbusiness.Pearson Education Limited.