Governments develop and support economic systems that they believe will give their society a competitive advantage and worldwide recognition as a viable global force. Every country’s social system is comprised of three components: cultural forces, economic forces, and political forces. These dynamic forces are in constant motion and prove to be a challenge to firms entering foreign markets.
Today, a firm’s competitive environment is not confined to its national borders. Firms try to achieve greater market share and gain competitive advantage by selling in global markets. In order to be successful, firms must fully understand the countries with which they do business. To do this, firms develop strategy based on an analysis of the environment in the foreign country.
To help you understand this contemporary economic concept and apply it to global competitive advantage, you are required to submit a research paper that examines the cultural, economic, and political forces in a country of your choice based on the industry you select. You are not permitted to use a country where English is the primary language spoken. India is the only exception to this. After examining these forces, you must identify the challenges or opportunities that firms face when trying to do business in these countries and make recommendations to firms entering these markets.
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