Advantages and Disadvantages of doing foreign business

Running Head: Advantages and Disadvantages of doing foreign business
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TIM HORTONS, BARRICK GOLD, AND LOBLAW COMPANIES
International Business
Student name
6/23/2019

Globalisation Impact on Businesses 1
Contents
Part-A: Analysing Challenges that Canadian Firms Encounter:...............................................2
Part-B: Analysing the influence of Globalization on Canadian Firms:.....................................4
Part-C: Proposing Your International Business Venture:.........................................................6
Bibliography...............................................................................................................................8

Globalisation Impact on Businesses 2
Part-A: Analysing Challenges that Canadian Firms Encounter:
a) Economic Risks: As the demand for the exported product is not stable so businesses
which purchase goods from other countries for the purpose of sale has to face this
challenge in the market scenario. Due to this factor, the demand of products
decreases and also gives an adverse impact on business. Example of this is can be
seen in oil demand as it will affect the business of not only firms which produces oil
but also to the others who use it in their company (Top 10 challenges of doing
business in Canada, 2019).
b) Legal Risks: Here laws are very much complex to understand and there are also
trade barriers which create an obstruction for the companies who are supposed to be
entering. It is seen when a foreign customer cancels the purchase done by him from
the company and due to this organization has to bear the cost of this as some countries
don’t provide protection as relating to contact made.
c) Corporate Social Responsibility Risks: It is the responsibility created because
society is the one who purchases its goods so it is their responsibility to do some
activity for the people. It is associated with pollution and employment problems
generally faced.
d) Competition: It is majorly faced due to intellectual property rights example- if
someone is offering a similar product with fewer prices in the market.
e) Related to labour: Labour available is not sufficient to cater to the demands of
business so an organization has to, spend cost in order to get workers from outside.
f) Failed in doing innovation: Innovation is necessary for the new things as it leads to
closure of the business if it cannot fulfil the needs and wants of the target market
successfully.
g) Civil unrest and political violence: It happens at the time of circumstances of war
and protests and impacts on business as well as consumers.
h) Loss of property: It happens due to natural disasters such as flood, drought, and
cyclone which have the power to destroy the organization and the market surrounds.
i) Technology: It is a majorly needed to protect the country against the crimes which
are occurring due to technology. Example of it - system failure which may affect the
operations of the business and can be overcome only when, a contingency plan is
made in order to avoid such types of situations (Akrivopoulou, 2012).
j) Culture: It will impact the business as people follow different types of cultures and
traditions so it will be suitable to them and make possible efforts for not providing
harm to any one of the individual’s religions or community.
Opportunities for setting up a business in the international market:
a) Greater Market: It expands the market coverage of the company and also by these
new customers is obtained. Due to this practice, it becomes possible to establish its
roots in various places (Kauda, 2016).
b) Lowering cost: By this, the cost of businesses is reduced because it becoming able to
satisfy the demands of the mass population which, thereby results in a high profit of
the company.

Globalisation Impact on Businesses 3
c) Diversification of business risks: It is possible with access to new markets as risk is
reduced and appropriately divided among economies (Donaghy & Roussel, 2018).
d)