BUSN 604 Week 7 Assigment Sheila Seal

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American Public University *

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604

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Business

Date

Jun 12, 2024

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docx

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7

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1 Domestic and International Markets Sheila Seal American Public University BUSN 604: Fundamental of Business Analysis Dr. Shelley Pumphrey 5/19/2024
2 Introduction This feasibility analysis aims to determine whether the company should invest in a new product line overseas or keep the investment within the US. This decision will involve a thorough examination of both qualitative and quantitative factors to ensure that the chosen investment aligns with the company's strategic objectives and financial health. Body When overviewing the US and foreign market's similarities and differences when investing in the markets. Overviewing the similarities between both domestic and foreign investments aims to expand their companies' market reach and enhance profitability. They also require a lot of market research, compliance with local regulations, robust strategies for risk management, and solid mitigation for potential seen and unforeseeable challenges. Investing in US markets requires familiar market dynamics, cost structure, and regulatory environments. Foreign investments need a firm understanding of new market conditions, the ability to navigate complex legalities, and overcoming cultural diversities and operational challenges with new market conditions. This paper will incorporate a broad view of qualitative and quantitative analysis in the foreign and domestic markets. Evolution has played a big part in internationalization. According to Murthy (2019), there are 5 stages in internationalization, which include, “ domestic, international, multinational, global, and transnational” (Murthy, 2019, P., 11). These stages are important and help develop higher economic growth, improve the total and per-capita income, industrial growth, and employment, and increase the rate of income. The approach to domestic and international business can be quite different. There are 5 different approaches to international business but domestic business sticks to the ethnocentric
3 approach. Whereas international business tends to use the polycentric, or regiocentric approach (Murthy, 2019). Qualitative Factors There are several qualitative factors when determining whether a company should invest in any product line in the US or overseas market. The market's US conditions are characterized by its stability and a high degree of familiarity for the company. However, one must understand consumer behavior, market saturation, and the established competitive landscape. Thus, these markets come with a higher uncertainty, several things need to be considered for instance; first, analyze the market potential, secondly, develop a broad understanding of its growth prospects, thirdly, become well versed on the cultural differences, and finally know the political and economic stability of the target country (Daniels, 2019 ). Whether one invests in the US or overseas markets, complex regulatory environments vary greatly depending on location. The US has a complex familiar regulatory environment involving federal, state, local, and governmental regulations. The companies that are in the US already have an understanding that compliance is straightforward due to the company’s existing experience. When a US company is looking to invest in overseas markets, it requires experience in navigating unfamiliar trade regulations, tariffs, and dealing with foreign investment policies. Overseas countries have varying levels of bureaucracy and legal challenges, which can have a large impact on the investment’s feasibility. Global leadership must have a global mindset and think on a different level from their decision-making techniques to adopting and developing impressive positive algorithms, and sophisticated software for international marketing (Hill, 2019).
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