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Explain factor business should consider before going overseas Watch

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    can someone explain me how to affordability factor can be problematic (5 marks answer)
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    different countries have different economies - consider iceland, lots of wealth equality and thus a high minimum wage, so a business would have high running costs overseas and would have to adjust their prices accordingly (search for the big mac index)
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    Different work place or operating regulations could make it more expensive to run a business.

    Labour costs vary considerably.

    Import and export laws, stricter rules could mean higher price for raw materials and less competitive finished product
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    can someone explain me this.

    AffordabilityInternational business means more costs, including travel, customs, phone calls and office space. For most companies, the biggest difference in costs between having an international or domestic business is shipping. Don't forget to include the hidden costs involved with shipping overseas, such as hiring a freight forwarder and purchasing overseas shipping insurance. Further, overseas buyers might ask for long periods of credit extension, leaving you with cash flow issues unless you prepare for them. Develop a list of your all cost and measure them against the potential gains.
 
 
 
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