Expanding the business globally can be good because it provides several opportunities for increasing the profit of the company. But due to several risks associated with global business most of the people are not trying it. For making the business a success it is also essential to have the key people in positions with responsibility.
One of the major concerns of doing business in a foreign country is to know about the laws related to trade in that particular country. Laws regarding import and export duties as well as additional taxes need to be checked before starting the business. If there are no legal advisors in the country it can lead to fines and penalties.
Another obstacle that may encounter with global business is the use of language. Sometimes certain details might be omitted during the translation process while having a meeting with foreign clients. If customer service is in a different language it can also lead to a lot of misunderstanding.
At times the cultural barriers also play an important role in doing business globally. In certain countries, the woman is not given equal power and marketing products and services could be having due considerations for the gender difference. How a legal contract is being taken also depend upon the culture because there might not be strict law and order in that country.
In certain countries, political factors also contribute to problems for global business. Certain political parties do not entertain a trade with foreign countries. Issues related to human abuse also need to be considered at the production stage especially if work is outsourced to certain countries.
