The most important factors in marketing are “location, location, and location.” Finding the right country for selling products or services is critical to the success of a global entrepreneur. In the previous module, we examined how to find attractive industries. Now our attention is turned to finding attractive countries for our products and services. Before turning attention to the internal resources that can cause a country to be attractive for entrepreneurial activity, it is important to understand the external factors that affect a firm’s ability to successfully operate within a country’s borders. This is done by assessing the economic, cultural, political, legal, and technological environments. The CIA World Factbook provides a wealth of information of all these external factors. When examining the economic environment, attention must be paid to the country’s banking system. The cultural element of a country will have a definite impact on the products and services that are sold within the country. It is critical to understand the demographics of the country and any restrictions that culture may impose on goods and services. Geert Hofstede created the Cultural Dimensions Index, which allows the entrepreneur to examine the differences and similarities in culture from one country to another. From a legal perspective, entrepreneurs need to know how to protect their products and services and how to operate effectively within the country’s legal system. The technological environment is also essential to examine. Entrepreneurs need to know how to use technology to their advantage in the country environment. The International Telecommunication Union (ITU) provides information on internet usage, broadband use, and other telecommunication statistics. Understanding if credit cards are frequently utilized or if online buying is a part of the culture can improve the entrepreneur’s strategy in the market.
Porter’s Diamond In addition to his work on developing a model...
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