Selecting and Researching Foreign Markets
Last Verified:
2005-07-14
To properly select a potential foreign market requires that you understand the physical, economic, political and cultural factors that shape and influence that market and where your product or service fits into it. The Business Link Reference Library http://www.cbsc.org/alberta/tbl.cfm?fn=edmref_search
can assist you with your research requirements and suggest other organizations that can provide you with additional advice and information. Our library collection for identifying target foreign markets contains a large selection of books, directories, audios, videos and CD-ROM's to assist new or existing exporters investigate potential markets. Also, check the country research and company links on this page.
Summary
What questions do you need to ask? Here are some examples:
Demographic considerations:
- Is this country prone to natural disasters?
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What modes of transportation are available to get your product into the country?
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What is the population? Of that, what percentage is in your target group and what percentage of that group can afford your product?
Economic considerations:
Political considerations:
- Is this country prone to frequent changes in government?
- Which countries are political allies? Does this country have good relations with it's neighboring countries?
- Is there a history of civil unrest, terrorism or labour strikes in the country?
- Is the government receptive to foreign business, or are there a number of barriers (duties, taxes, quotas, etc.) in place to make it difficult for foreign companies to do business in this country?
Cultural considerations:
- Does the business culture differ greatly from your own? In what ways? Will you be able to adapt to it or will you hire someone to act on your behalf?
- Are foreigners welcomed, or greeted with suspicion?
- Would your product or service or the name of your product or service be considered offensive in that culture?
- Do you know someone who is familiar with that language and culture who can guide you through the subtleties not always found in books?
- Do you know the language of the country? Does one of your employees? If not, are you prepared to hire a translator?
Country Research and Company Links
Now that you know what you're looking for, it's time to take an in-depth look at those markets you want to target. You can research each country in detail using the following sites:
Where do you find information on other companies? Check these links:
Library Resources for Identifying Foreign Markets
Books/Directories
The Do's and Taboo's of International Trade
Dun & Bradstreet's Guide to Doing Business Around the World
Ernst & Young's International Business Series
Exporter's Encyclopedia
Incoterms 2000
The International Directory of Importers
The Portable Encyclopedia for Doing Business with Hong Kong
Audio's
China : what to expect . . .what to do . . . when doing business with Chinese
Mexico : what to expect . . . what to do . . . when doing business with Mexicans
Video's
Going Global
Exporting Services to the United States
Trade Show Gold: a guide to international exhibiting
ISO: 6 steps to global quality
Databases
Business & Company Resource Centre - BCRC
Stat-USA (formerly The National Trade Data Bank)
U.S. Census Bureau
Worldmark Yearbook
Other Sources of Information
Business Associations (ie. Manufacturers and Exporters Canada)
Bilateral Business Councils (ie. Canada-Korea Business Council)
Intermediaries (ie. foreign distributors)
Prepared by: Canada/Manitoba Business Service Centre
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