The actual procedure of making an expansion into a foreign country is of a huge cost to the firm attempting to do so. There are many financial costs to consider, such as the construction of facilities, acquisition of permits, e.t.c. Another perceived disadvantage to the company attempting to establish is that new rules, regulations, and laws which apply to the hosting country must be learned and applied to all foreign firms. Following this, foreign countries also host to a difference in cultures. An example of this as a disadvantage would be as in the case of a country where women are prohibited from working. A country of this culture would mean that a large amount of the population is unavailable for work, decreasing potential employee counts. A further disadvantage would be the political environment. In many third world countries which companies choose to expand to, there is much conflict between the guerillas, people, and politicians of a country. This can not only cause issues in the safety of workers lives, but issues for the company, as it can lead to negative media coverage in ambiguous causes. An example of this would be company workers being held hostage by local guerillas. In the case that the firm does not pay off the hostages, workers lives will be taken. In the case that they do pay off the guerrillas, they will be most likely fined by a first world country they’re based in, in addition to negative media coverage which might harm the brand. Much of the reason these groups exist within third world countries is because of corruption of the government causing them to establish. Originally, many of these groups were created solely to help achieve their economic needs on Maslow 's hierarchy of needs. Though after much time, physiological and safety needs were met, and as of recent times they are
The actual procedure of making an expansion into a foreign country is of a huge cost to the firm attempting to do so. There are many financial costs to consider, such as the construction of facilities, acquisition of permits, e.t.c. Another perceived disadvantage to the company attempting to establish is that new rules, regulations, and laws which apply to the hosting country must be learned and applied to all foreign firms. Following this, foreign countries also host to a difference in cultures. An example of this as a disadvantage would be as in the case of a country where women are prohibited from working. A country of this culture would mean that a large amount of the population is unavailable for work, decreasing potential employee counts. A further disadvantage would be the political environment. In many third world countries which companies choose to expand to, there is much conflict between the guerillas, people, and politicians of a country. This can not only cause issues in the safety of workers lives, but issues for the company, as it can lead to negative media coverage in ambiguous causes. An example of this would be company workers being held hostage by local guerillas. In the case that the firm does not pay off the hostages, workers lives will be taken. In the case that they do pay off the guerrillas, they will be most likely fined by a first world country they’re based in, in addition to negative media coverage which might harm the brand. Much of the reason these groups exist within third world countries is because of corruption of the government causing them to establish. Originally, many of these groups were created solely to help achieve their economic needs on Maslow 's hierarchy of needs. Though after much time, physiological and safety needs were met, and as of recent times they are