Essay about Expanding Overseas

1464 Words Jun 24th, 2016 6 Pages
Expanding Abroad: Is it Worth the Effort

Owning and operating a business is not something that comes easily to most people, after all many businesses struggle to keep afloat in their own country forget about opening a business overseas. Running a business can be a challenge especially trying to do it from a different country. There are many things that you need to take into consideration such as language barriers, currency exchange and customs to name a few. Many entrepreneurs look to the international market because they have lower startup costs and there is less business around to compete for startup costs. This by no means makes starting a business overseas easy however; there are definitely tricks to the trade. As with anything
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The challenges that are faced aren’t as simple as language and currency exchange it is something that is much deeper than that. The root of the business and what keeps the business running as smooth as possibly is the staff. Ensuring that you have the right staff in place is essential especially if the business is going to be run from across the ocean. There are key human resource management aspects that are pertinent to the success of a globally expanded company. These issues include but certainly are not limited to selecting the right people with the right mixture of local versus home experience; managing the expatriate manager; and dealing with particular problems like repatriation. Other issues include understanding the challenges of living and working overseas, performance appraisals from a distance, training and management development, compensation packages, labor relations and organized labor laws. Another challenge that a new business could face would be legal issues. When you conduct business in another country, familiarizing yourself with the country’s laws is not an option. The legal complexities of international business can be challenging and certainly can be what makes or breaks your business. Not abiding by the laws set forth by the country

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