Problems Faced by Business in International Markets

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Problems Faced By Global Companies Conducting business globally requires incessant hard work. Multinational companies at times face colossal problems related to different dynamics. Sometimes, a campaign fails when the product is launched without proper research. Here we have accumulated some leading complications faced by the global companies. Technological Advancement: With ever increasing advancement in the technology, businesses are left with no choice but to remain updated by investing in latest technical tools. Though technological advancements has made the business processes easier, it has also constrained the companies for system upgrades, which can be monthly or yearly. The companies have to make enormous investments on technical tools and software. They also have to make decisions regarding the best versions of software tools and technical components to use them. Also, they have to be aware of the competitor’s technological advancements. Sometimes, using the latest version of any software or gadget can also backfire. Hence, big companies are required to make a long term technology strategy. Guidelines and Principles: Global companies are subjected to various government laws. These companies have to be in accordance with the tax laws and legal export regulations. These compliance and regulations are to be followed even if the company is shipping a decoration item through a website. The countries have different rules and regulations regarding multinational corporations. The problem also arises because of the laws governing local workforce and foreign investment. Environmental Barriers: Overseas business give rise to barriers related to social, cultural, religious and language barriers. The global company needs to bridge the communication gap and analyze the ethics of the country’s environmental aspects. Successful campaigns are possible once the company has complete analysis of the social factors of a country. Locals can be hired to break the language barriers and to provide the acumen of the country’s traditions. For example, in Muslim countries, men are not allowed to shake hands with women. Political Issues: Political instability in a country causes colossal impact on a global company. Companies suffer from sales decline when the conditions are unsteady. There are several other factors which are also effected. It includes outsourcing the industrial progressions. Also, if the company gets allied with human rights abuse, it gets unscrupulous publicity.


The global companies face high competition with international and local corporations. For this, they have to be innovative and consistent in their quality standards along with the customary pricing. The innovations of products should be related to the preference of the people in a country.

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