What are the challenges in launching an international trade operation?

A locally successful business may easily fall victim to the fallacy that having a locally successful business makes success in international commerce easy to achieve.

 

Challenges:

• Lack of a trade network in the target markets - Local businesses simply do not have enough contacts in the global markets to bring in enough revenue to cover the costs of foreign trade.

• Cultural, ethical, and procedural differences.

• Language hurdles, a lack of awareness of the needs in foreign markets that may differ from those in the local market, and problems with human resources are all factors.

• The price of maintaining an office with employees needed to conduct business in the target market.

• Complex operational and logistical issues, customs laws, political climate and its impact on the administrative structure.

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The aforementioned are only a few of the difficulties a local business may encounter while attempting to go international.