Before selling products internationally, business owners should evaluate prospective countries to determine if they fit the business well.
Why is it important to closely evaluate countries before selling in them?
What are 1–2 countries with great potential for American companies and why?
Who are 1–2 countries that may not want to purchase American products and services and why?Assignment Details
Before selling products internationally, business owners should evaluate prospective countries to determine if they fit the business well. Many factors could disqualify a country as a strong market location for your company.
Watch the following videos to learn about countries with the greatest opportunities for international success:
10 Best Countries to Invest in Business
15 Countries Americans Are Not Welcome In
Several factors may disqualify a country from international consideration, including the following:
Historically political differences between the country and the United States
A recent history of military actions or wars between the country and the United States
Cultural, religious, or social differences and conflicts
After watching the videos, download this assignment template. Then, in a 3–5-page paper, respond to the following:
Why do American culture, values, and political ideologies matter when selecting international markets?
Sample Solution
NAFTA: A Double-Edged Sword
The North American Free Trade Agreement (NAFTA) has been a subject of intense debate for decades. While it has undoubtedly brought certain benefits to the United States, Mexico, and Canada, it has also had negative consequences, particularly for American workers and businesses.
Trade Benefits of NAFTA:
- Increased Trade: NAFTA has significantly increased trade among the three countries. By eliminating tariffs and reducing trade barriers, the agreement has facilitated the flow of goods and services, boosting economic growth.
- Expanded Market Access: NAFTA has provided American businesses with access to a larger market of over 450 million consumers. This has allowed US companies to expand their operations, create jobs, and increase exports.
- Specialized Production: The agreement has encouraged specialization and division of labor among the three countries. For example, the US may specialize in high-tech manufacturing, while Mexico may focus on low-cost assembly. This has led to increased efficiency and productivity.
Benefits for American Consumers:
- Lower Prices: By reducing tariffs and eliminating trade barriers, NAFTA has helped to lower the prices of many goods, such as automobiles, electronics, and clothing. This has increased consumer purchasing power and improved living standards.
- Greater Choice: NAFTA has expanded the range of products available to American consumers. This has allowed consumers to choose from a wider variety of goods, often at lower prices.
Full Answer Section
Negative Impacts on American Workers and Businesses:
- Job Losses: One of the most significant criticisms of NAFTA is that it has led to job losses in the US manufacturing sector. As companies have sought to reduce costs, they have relocated production to Mexico, where labor costs are lower. This has had a devastating impact on American workers, particularly in manufacturing-heavy regions.
- Wage Stagnation: The increased competition from lower-wage countries has put downward pressure on wages for American workers, particularly those in manufacturing and other labor-intensive industries.
- Environmental Concerns: Some argue that NAFTA has led to environmental degradation in Mexico, as companies have moved to the country to take advantage of lax environmental regulations.
In conclusion, NAFTA is a complex issue with both positive and negative consequences. While it has undoubtedly brought economic benefits to the three countries, it has also had significant negative impacts, particularly on American workers. It is essential to weigh these factors carefully and consider potential reforms to address the challenges posed by the agreement.