Paper Topic:

International Business

Running Head : International Business

Opportunities and Risks in International Business Concerns

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Opportunities and Risks in International Business Concerns In to move Physical Movement Company into international markets there are many considerations which must first be addressed . According to Dr . Sharon T . Freedman the number one mistakes of companies entering a foreign market is failure to obtain qualified export counseling and to develop a master international marketing plan before starting an export business (International Trade , 2007 . To fully understand the implications in PMC 's

bid to go international , it is necessary to consider American consumer products which ultimately failed to capture market share in other countries

One documented mistake of an American product which had to later be withdrawn from a foreign market is that of the H . B . Fuller Company . In the early 1980s , the Fuller Company produced an adhesive which it decided to market in Central America . The glue was named Resistol . A short time after it was made available to the public , there were many reports detailing the use of Resistol by young children as a way to get high . The Fuller Company attempted to keep its presence viable in Central America by claiming the problem was not the glue itself , but the poverty in the children on the street . theless , recognition as a socially responsible company required Fuller do something to solve the problem . The company decided to sell its glue only to wholesale customers . However , Resistol still ended up on the shelves of corner markets . They eventually succumbed to media pressure and put less lethal ingredients in their glue , but by then the damage had already been done and the Fuller Company 's reputation was irrevocably shredded due to bad publicity . The company was forced to withdraw Resistol from Central American markets after a decline in sales and the presence of newer safer glues available for sale . Their failure was due to the fact that the company did not understand the culture of this new market nor the risks inherent in making their product readily available to children whose socio-economic status caused them to abuse it (Kline , 2005

Another documented mistake concerns that of the Amway Corporation Amway , well known in the United States for its social marketing strategies by basically employing door-to-door salespeople to sell its products , decided some years to go global . They have successfully integrated foreign markets such as Europe , South Africa , and Australia But their entry into China was met with less success the company continues to forge ahead but has identified key areas of concern . Amway made several mistakes in the course of their rush to capitalize on China 's strong economy

A factor that Amway must deal with is the changing political policy in China . Once described as being staunch supporters of peasants and the working class , Chinese politicians are now taking a stronger stance in siding with the capital class (AESPlus .net , 2006 . The culture of the country is a major factor in...

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