When we say global, the first obvious thing that comes into our mind is the WORLD. Therefore a global business simply means a business that penetrates a world market wherein they can be able to reach people from different corners of the world.
According to Beverly Cornell, “ Global business consists of the flow of goods and services across national borders. The business of importing and exporting, trade, and foreign direct investment are carried out in various transactions, including wholly owned subsidiaries, joint ventures, licensing, franchising and contracts.”
When doing global business, you should consider the environmental factors such as cultures, laws and societies. You cannot penetrate in the global market unless you are ready. The question here is that, how do we know if we are ready to plunge in a global business?
Beverly Cornell designs the following questions that you can ask yourself to measure your preparedness:
1. Is there a global demand for your product or service and how will it fit into the international marketplace?
2. What is the best way to enter the market – through trade or through investment?
3. What kind of supply chain should you consider – should you get supplies domestically or from abroad?
4. How will I need to adjust my product or service to respond to consider international conditions?
5. What threats from global competition should be expected and how can these threats be counteracted or mitigated?
6. Does your organization have the human resources and cash flow to make an international business work long term?
You should consider the above questions in doing a critical decision to start a global business.