As businesses, both individuals and companies, begin to think and then operate globally, they face environmental challenges that complicate efforts to expand revenue and increase profits.
Success requires executives understand the political, legal, cultural, economic conditions and circumstances that influence market structures, business conditions, industry dynamics, and competitive situations.
As we see below, executives running internationally minded United States companies consider a host of factors when evaluating new markets to enter.
In their view, the barriers to global expansion, both inside and outside the United States, are primarily _______, _______, and _______.
Extracted text: THINKING GLOBALLY HI | Percentage of U.S. companies who operate in: of U.S. CEOS believe there are more growth opportunities today for their companies than three years ago 29* two international regians 67% 25% one region 54% 19* three regions of business executives 5% four regions 80% agree that U.S. companies should expand internationally for long-term growth of U.S. companies have some foreign market involvement 10% five regions STRATEGIES FOR FOREIGN OPERATIONS GLOBAL ECONOMIC GROWTH PROJECTIONS EXPANSION PLANS 72% 16% acquiring another company Outlook for average anNual real growth in the global economy between 2015 and 2020 is between 3-4% 60% of companies of companies say their international of U.S. CEOS 48% plan to 39% Emerging economies are expected to grow by more than 4%, contributing $16.2 trillion to global growth through 2020 36% increase set up an in-market subsidiary their business international development complete a planning will cross-border increase plan to participating in a joint venture share of business M&A* in 2015 M&A*-Mergers and Acquisitions CHALLENGES FOR GLOBALIZATION U.S. BUSINESSES FOCUS ON THE FOLLOWING WHEN CONSIDERING NEW MARKETS TO ENTER: POLITICAL STABILITY 89% SKILLED LABOR FORCE 79% CORE INFRASTRUCTURE 82% FAVORABLE TAX CODES AND INCENTIVES 75% FAVORABLE TARIFFS / TRADE REGULATIONS 82% COST OF LABOR 73% ABILITY TO ENFORCE CONTRACTS QUICKLY 80% LABOR LAWS 71% EASE OF TRADING ACROSS BORDERS 80% ACCESS TO CREDIT 60% G20 1,244 COUNTRIES ADDED RESTRICTIVE TRADE MEASURES SINCE THE GLOBAL FINANCIAL CRISIS IN 2008 BARRIERS TO GLOBAL EXPANSION: INSIDE' AND OUTSIDE“ THE U.S. REGULATORY ENVIRONMENT * 57% COMPETITIVE ENVIRONMENT * 37% REGULATORY ENVIRONMENT ** 56% LABOR COSTS ** 29% LEVEL OF POLITICAL STABILITY ** 51% KEY TRENDS IN THE INDUSTRY * 27% ECONOMIC CONDITIONS ** 44% CHANGES IN REQUIREMENTS* 26% EXCHANGE RATES * 39% ECONOMIC CONDITIONS* 24%