Chapter 12 Assignment Example | Topics and Well Written Essays - 500 words

Chapter 12 - Assignment Example Cateora, Gilly, & Graham (2011) explore some of the reasons that can make a country not to be farther considered as a potential market via a planning process. The planning process is divided in to four phases but this paper will explore how and why a country can be dropped in the first two phases. The objective of the first phase is to match the needs of the company and its home country to those of the host country. The compatibility of the company’s character and its home country to those of the host country is the basis on which countries are either disqualified or qualified as markets. The first thing that a business will look at when evaluating a host country is the economy of that particular country. Every business wants to be associated and to partner with a country that records substantial economic growth or has a stable economy. For example, Greece can be viewed as a potential market for commodities like electronics. However, the fact that Greece’s economy is experiencing major debt problems would disqualify it from being a potential market. The second most important criterion that is used to evaluate a potential market is the political stability and the legal policies of the host nation. The political stability is very key if a potential market is to be considered as an actual market. This is because it ensures the safety of the business and its personnel and in most cases, it also means that the legal policies are favorable for running a business. The legal policies may include taxation brackets and the political stand of the country on trade regulating policies. Competition is the third criterion as highlighted by