Events that may impact International Widget’s ability to expand globally are their ability to understand the economic environment. As the economy is integrated more globally to one world market, International Widget (IW) will face stiffer competition for their products as their home country moves to toward free trade allowing its competitor to put operation locally to compete for market shares. In addition, IW will see stronger competition for the limited natural resources use for the raw material to build the widget. In order for IW to compete successfully they need to understand the global demographics, and the legal/regulatory environment of any countries they want to establish a present. Furthermore the technology infrastructure used for the company may play an important role in gathering critical data for decision making as getting accurate information and …show more content…
One challenge, the manager needs to deal with differences in culture barriers. The way China operates its business may not be acceptable for IW. For example, the manager may use some form of under the table payment to put product at higher priority for shipping or transport. Another challenge, IW need to have a strategy to deal the domestic competitors. The competitors to IW in China probably have a more cost-efficient way of doing business than IW. Although, these are significant challenges, there are also significant opportunities. The movement of free trade opens protected national markets such as China who has large consumer population. In addition, more opportunities are open for investment in overseas market giving business the opportunity to expand and potentially increase profit. In summary, the lowering of trade barrier between nations is changing the way of business. Today’s manager needs think globally to seek an increase in market shares of their products as they face domestic