The risks of entering a foreign market: case study of India and Venezuela (2008)

Résumé du document

Entering a foreign country can be very risky and information about the Political, economic, sociological and the technological aspects can be very important for companies who want to set up a business offshore. I have chosen to pick INDIA and VENEZUELA for this study; INDIA because in my point of view, we cannot minimize the importance of this country in the global market and VENEZUELA because it is one of the most important oil producing country in the world, (sixth producer, first quarter 2008) but adopts a different positioning in the worldwide chess board, in its exterior policy diplomacy and partnership.

Extraits

[...] Countries Identity card PESTEL Analysis of INDIA and VENEZUELA Rating This is illustrating that we said before in the two first points. INDIA doesn't present a very low political risk because of the structuring of the country. The major issue is now to elaborate a demographic control and to try to improve the third sector. Opposite to INDIA, VENEZUELA present much more risks in the economical aspect and political. Investments are much more risky but benefits can be also very interesting. [...]

[...] Conclusion The micro economic environment is pretty weak for business in INDIA and VENEZUELA, because of the macro economic environment pressure. The major thing and one of the biggest advantages for the firms is the labor cost. Labor cost is often really low. That's a big advantage in difficult places. And that's why firms delocalize their production in such places. But it is important to remember that in risky places it is important to treat well the work force. Why? [...]

[...] The firm can also act and adapt its products and services according to the market and trades cycles especially in Indian market because of the importance of the cultural aspects (tastes, references, colors, slogan, or religions). That means that they cannot change the general trends, but they can play with that to make more profits. Bibliography Web sites www.cofacerating.fr/ www.eulerhermes.fr www.ducroire.be/ http://www.bmcetrade.com/ www.diplomatie.gouv.fr www.standardandpoors.com The federation of international trade associations FMI - World Economic Outlook Database Magazines and Books Le Nouvel Observateur, Atlaéco 2008 Le MOCI, Risque Pays 2008, Spécial Marketing Management, 12ème édition, Philip KOTLER, Kevin Lane KELLER, Delphine MANCEAU, Bernard DUBOIS. [...]