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13 May, 2016 - 13:23

Despite attractive opportunities, most businesses do not enter foreign markets. The reasons given for not going international are numerous. The biggest barrier to entering foreign markets is seen to be a fear by these companies that their products are not marketable overseas, and a consequent preoccupation with the domestic market. The following points were highlighted by the findings in the previously mentioned study by Barker and Kaynak, who listed the most important barriers:7

  • too much red tape
  • trade barriers
  • transportation difficulties
  • lack of trained personnel
  • lack of incentives
  • lack of coordinated assistance
  • unfavorable conditions overseas
  • slow payments by buyers
  • lack of competitive products
  • payment defaults
  • language barriers

It is the combination of these factors that determines not only whether companies become involved in international markets, but also the degree of involvement.