Exam 12: Analyzing International Opportunities

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Companies can consult a variety of sources to obtain information on a nation's business environment and markets.The particular source that managers should consult depends on the company's industry,the national markets it is considering,and how far along it is in its location-screening process.The process of obtaining information that already exists within the company or that can be obtained from outside sources is called secondary market research.Managers often use information gathered from secondary research activities to broadly estimate market demand for a product or to form a general impression of a nation's business environment.Secondary data are relatively inexpensive because they have already been collected,analyzed,and summarized by another party.
International Organizations-There are excellent sources of much free and inexpensive information about product demand in particular countries.For example,the International Trade Statistics Yearbook published by the United Nations lists the export and import volumes of different products for each country.It also furnishes information on the value of exports and imports on an annual basis for the most recent five-year period.Today,most secondary sources supply downloadable data through the Internet or through traditional printed versions.
Government Agencies-Commerce departments and international trade agencies of most countries typically supply information about import and export regulations,quality standards,and the size of various markets.These data are normally available directly from these departments,from agencies within each nation,and from the commercial attaché in each country's embassy abroad.In fact,visiting embassies and attending their social functions while visiting a potential location are excellent ways of making contact with potential future business partners.
Industry and Trade Associations-Companies often join associations composed of firms within their own industry or trade.In particular,companies trying to break into new markets join such associations to make contact with others in their field.The publications of these organizations keep members informed about current events and help managers to keep abreast of important issues and opportunities.Many associations publish special volumes of import and export data for domestic markets.They frequently compile directories that list each member's top executives,geographic scope,and contact information such as phone numbers and addresses.Today,many associations also maintain informative Web sites.
Service Organizations-Many international service organizations in fields such as banking,insurance,management consulting,and accounting offer information to their clients on cultural,regulatory,and financial conditions in a market.
Internet-Companies engaged in international business are quickly realizing the wealth of secondary research information available on the Internet and the World Wide Web.These electronic resources are usually user friendly and have vast amounts of information.