Companies conduct research when selecting a country that is appropriate for international business. This research is then used to narrow the alternatives in the country evaluation process. International research is also used to reduce uncertainties by answering the following questions:
“Can qualified personnel be hired?”
“Will the economic and political climate allow for a reasonable certainty of operations?”
“Where are possible new sources of funds or sales?”
Unfortunately, the inaccuracies of data on many countries sometimes create more uncertainties about location decisions. This inaccurate data comes from an inability of many governments to collect and publish the data. These governments have limited funds, and need to spend this money on fixing problems rather than reporting on them. Other inaccuracies form due to cultural differences and the government purposely publishing misleading data. Companies need to be careful when researching location to conduct foreign business, particularly when they are developing countries.
“Can qualified personnel be hired?”
“Will the economic and political climate allow for a reasonable certainty of operations?”
“Where are possible new sources of funds or sales?”
Unfortunately, the inaccuracies of data on many countries sometimes create more uncertainties about location decisions. This inaccurate data comes from an inability of many governments to collect and publish the data. These governments have limited funds, and need to spend this money on fixing problems rather than reporting on them. Other inaccuracies form due to cultural differences and the government purposely publishing misleading data. Companies need to be careful when researching location to conduct foreign business, particularly when they are developing countries.
Written by Carl Phelps, Research Associate, GLOBAL ID LLC
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