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Reasons to avoid international markets

5 May, 2016 - 16:15

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: 1 

  1. too much red tape
  2. trade barriers
  3. transportation difficulties
  4. lack of trained personnel
  5. lack of incentives
  6. lack of coordinated assistance
  7. unfavorable conditions overseas
  8. slow payments by buyers
  9. lack of competitive products
  10. payment defaults
  11. 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 any involvement.