When planning to expand the production, the selling and the other business activities into some international markets there are many things that one should take into consideration. But not only too little information can create uncertainty, but also an excess of unuseful information can have the same effect. This is why it is important to make a plan before taking your business into the international market. In the following, we are going to concentrate more on the cultural barriers that might exist when thinking about expanding abroad.
First of all, let’s think about the motives why you could plan your business abroad. We can classify these motives into two categories: proactive and reactive. At proactive motives we could include: foreign market opportunities, profit goals, tax benefits, managerial urge, and as reactive motives we could mention the proximity to international customers (also called “ psychological distance”) or a small and saturated domestic market.
