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Essay / Recommendations for starting a business in a foreign country
Singapore, as a selected country, also has some disadvantages. First, Sysco will face the challenge, as a food distributor, of some resistance to exporting its products for food safety reasons. The Singapore government has "strict public policies on food safety" (MacLaren, 2006), which is good regulation, but also as a new business entering the country, the rigorous initial inspection may prolong the export to Singapore. There are also issues of strict legal liability, should they ever arise, and the lack of rules and regulations towards an unknown jurisdiction. Finally, a large local presence, such as China, Taiwan, etc., a very competitive presence, as an already established presence in the region can also offer lower cost options for the same products. South Korea presents great potential for organizations looking to start business. inside. Like any other country, there are advantages and disadvantages to starting a business. One of the advantages is that it appears that the government is willing to reduce export tariffs. According to Kumuro's research, “a test for change in tariff classification focuses on whether the manufacturing of the product is exported” (Kumuro, 2009). The country's leaders have also made great strides in allowing free exchange rates, which has made trade with South Korea somewhat easier than trade relations in the past. South Korea has many disadvantages that make it very unfavorable as an option. This is mainly due to the strict government controls and regulations in place, as well as the strong preference given to companies originating from the country over foreigners. What we also see is that there is a strong "party to an FTA or free trade agencies...... middle of paper......, as well as opportunities commercial relationships/joint ventures. The final recommendation is to start with small exports to the desired host country. This will establish several things: First, it helps determine how the market responds to exported products. Second, it helps build rapport and maintain relationships with the local community (businesses and residents) by introducing exports slowly rather than overwhelming the community with a massive influx of products. This is an absolutely imperative strategy because it helps reduce the overall cost by not bringing into the local market what it may or may not need and also allows Sysco to be better received. By strategically starting small, while building relationships, this can lead to a possible joint venture with a local organization within the country and also outside the established scope..