To understand the suitability and feasibility of a business we are planning
regarding expanding operations internationally, decisions making requires a deep
country analysis. In the case of being a toy manufacturer interested in beginning export operations, the economic indicators I would choose to analyze country opportunities are: the population, inflationary trends, and competition. The reason behind population is toys are known to be only children’s needs and wants. Therefore, the products that will be manufactured will only be patronized mostly by them, so it would be better if the business can reach more from its country than in the form of exportations. On the other hand, the inflationary trends of a country does not affect the income of it. Therefore, once inflation happened, toys will somehow be neglected because superior goods will then be the most concern of the people, rather than toys. Lastly, competition shall also be taken into account because with a few market scope, we must be able to establish a product that have competitive edge among other toy manufacturing businesses.
However, these indicators will surely change if computer manufacturing and
assembly plant overseas are the business that I am planning internationally. Only because, the latter’s kind of business are way more complex than being a toy manufacturer. Sector analysis, banking and financial markets shall be my concern in analyzing the country’s opportunities. With this kind of business, sector analysis is important because the parts and supplies of the product we manufacture does not came only from one country supplier as technology supplies and mechanical needs are usually gathered from one country to another. Therefore, it would be better if we can be able to maximize what the country can offer in terms of business opportunities and product needs (resources) to minimize the importation costs of supplies. On the other hand, banking and financial markets should also be considered because the costs of the production, materials, supplies and labor will definitely be expensive for this kind of business. In addition, experts and professionals of these business requires an expensive labor pay. Therefore, the country must have financial stability that is able to support and provide the financial needs (loan services, etc) of the business. Moreover, to make sure that the standard regulations of fund sourcing inside and outside the country are applicable and convenient for the business. The economic indicators mentioned above are just the most important among the rest based on their business type. It is still best to take into account all the economic indicators to have a better and precise analyzation of business opportunities.