Question

What might the differences between economically developing and developed nations mean to an international company considering entry into a foreign market?

Answer 1

Differences between economically developing and developed nations mean to an international company considering entry into a foreign market are as follows:

• Price: The international company can keep its pricing standard moderate to high for an economically developed country. On the contrary, the country must set the pricing standard low to the medium before entering into an economically developing country.

• Cost of technical equipment: The technical equipment cost of an international company will be lower in a developed country than a developing country.

• Competitiveness: The international company will face low competition in an economically developing country due to a lack of sufficient financial resources. On the contrary, competitiveness in an economically developed country will be higher than in developing countries because of the availability of financial support and technological resources.

• Workforce: The international company can have an extensive workforce resource from a developing country in a comparatively lower investment than a developed country.