Investing in Small Foreign Markets Offers Big Advantages

When looking to invest in foreign markets, look for the smaller markets in particular, for it is those markets that your cost of doing business is lower compared to high cost markets. If you are contemplating expanding your production facilities abroad, keep in mind that your labor costs are much lower in emerging market economies and third world countries, along with other ancillary expenses such as rent, taxes, and insurance. Raw materials can also be sourced and processed at a much lower price than in your domestic market.

The big picture objectives are to lower your manufacturing costs as much as possible using low cost labor that keeps the wholesale and retail prices of your product at a competitive level. Keep in mind, your business plan is not only to produce and distribute your products in the local markets, but to export to surrounding countries, and other larger more advanced markets where your product may not be readily available. This mindset is what will give you a head start on the competition and command market share for your brand.

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