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Business Location

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Submitted By jgrusz3
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“Location, location, location.” This phrase was coined by Lord Harold Samuel, in 1987 (Who conined). Although this phrase was referring to how important location is to real estate, this phrase is often used in business. The physical location is a key factor in determining whether a business will succeed, or fail. A few questions potential business owners have to answer are: Is location important for the success of my business, and what type of location is best for my business? Many business owners have to contemplate whether, or not, going overseas is the best fit for the product, or service, they plan on providing. When embarking into new territory, there is much uncertainty, and there are many risks associated. Before developing a presence in an international market, business owners must understand the culture, customs, and the risks related with the foreign market.
There are many factors that can affect location decisions. However, selecting a location is becoming more challenging due to the increase in globalization in the workplace. Many firms consider embarking in business ventures outside their home country. Location decisions are not just within national borders, but surpass over international borders. There are key factors in achieving competitive advantage in foreign markets. Some key factors that should be considered before engaging in international business are:
• Political risks and values
• Economic issues: exchange rates and currency risks
• Cultural issues
One major factor that business owners must consider when conducting business in another country is political stability. The biggest mistake a business owner can make is underestimating the potential political risks in international business. Although political risks cannot be avoided, they can be managed. The political risks associated with national, state, and local governments’ attitudes

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