Environmental Forces in International Markets

For many firms the question is not should we go overseas, but instead it is when should we go overseas. Examples of these firms include discount variety stores such as Wal-Mart or other firms like fast food restaurants such as McDonald's. The ability to spread their business to new places offers a whole new risk but with this risk comes the potential of great return. These firms however, must pay close attention to the environmental forces in internation markets. These forces include sociocultural, economic, and political, legal. and regulatory. Each of these forces has their own impact on how successful or how unsuccessful a firm can potentially become.
As we look at sociocultural forces firms need to keep in mind that not ever place in the world thinks that same way that they do, and in this event they need to carefully study the behaviors of the people they will be presenting their business to. In an effort to do this firms must carefully know the culture of the people that will be shopping at their stores and tailor their business to fit their lifestyles. Examples of this can be seen though McDonald's. Some countries are more health conscience than others and if McDonald's wants to be successful overseas it must change its menu accordingly.
Economic forces also have a large impact. Economic forces ultimately decide if a customer can shop at one place over another depending on the amount of money they have for specific product. This can be seen during times of economic struggles when people are no longer buying brand name products from mainstream stores but instead shop at discount stores. Businesses must be aware of this because this can ultimately decide if the products in their store will sell especially if there may be a competing store close by, or even if the brands they may offer are popular or will catch on in new environments overseas.
There are also political, legal, and regulatory forces. Companies that wish to move overseas must be aware of these regulations. These could potentially prevent one company from being able to sell its products in a new market. As you move overseas there are also import tariffs and quotas that could prove to be costly. These could potentially limit you from selling your main product that keeps your company afloat.
There are many factors to consider when thinking about going overseas. There is much time and research to be put into process of moving your company. Because of this many companies run into problems or conflicts they did not for see while others make the appropriate adjustments and go forth to have great success.
Although the two examples of firms I provided are both largely successful, are there any firms you can think of that suffered from their attempt to bring there business overseas? Which Environmental force do you think has the largest impact on a firm's success?