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Challenges of International Business

International Sales Manager plays a pivotal role in planning, organizing, and coordinating the sales activities of the company in the foreign market where business is carried out.

There are various challenges faced by the sales manager while conducting business internationally. Some of the important challenges of international business are described below:

1. Economic Factors
2. Cultural Factors
3. Political Factors
4. Legal Factors
5. Managing International Sales Force
6. Decision-Making Ability

Economic Factors

The economic system of a country is a major factor to be considered while planning sales activity in the foreign market. Traditionally there are two types of economic systems: capitalist economies and state-owned systems. In between these two are the mixed economies.

The level of economic development of each country is different and as such sales manager needs to plan according to the level of income of the people.

The differences in currency between nations and the exchange rate fluctuations are to be looked at by the sales manager before planning the selling function. The economic scenario in the host country needs to be properly analyzed to develop an appropriate marketing strategy.

Cultural Factors

Culture has a profound effect on the lifestyle of people and behavioral patterns and as such the market patterns also differ. The cultural factors are complex and difficult to understand. What may appeal to people in one country may be unappealing to people in some other country.

Cultural differences have an impact on marketing decisions. The differences in language, religion, social attitude, and behavior make it difficult for sales manager to simply go for an extension of the domestic marketing strategy.

Political Factors

The political environment of a country needs to be properly examined by the international marketer before deciding on marketing strategies. Foreign businesses may face political problems mainly because of political sovereignty. Such issues lead to intervention in the affairs of the business.

The change in government also leads to changes in rules and regulations which may bring in another challenge for the international marketer.

Legal Factors

The variation in legal rules and regulations of the host country poses a challenge to the sales manager. International marketers must be aware of the various laws, treaties, and international conventions. Laws related to property such as patents, trademarks, and the like are to be taken care of by the international manager.

Managing International Sales Force

The management of the international sales force is a difficult task. The sales force must possess qualities that help the business to grow in the international market. The sales manager must make proper selection of the sales force and provide necessary training which is crucial for the success of the business.

Decision-Making Ability

The sales manager must possess decision-making ability. The risk in the international market is very high and as such taking the correct decision at the right time is a challenging task for the sales manager.

Thus, the role of International Sales Manager is very challenging. International Sales Managers must understand the various environmental changes, risks, difficulties, and obstacles that they have to encounter in foreign markets.

FAQs About the Challenges of International Business