International business Essay Example | Topics and Well Written Essays - 3000 words - 1

International business - Essay Example Within this block are countries like Brazil, Russia, India and China, which have distinguished themselves as some of the promising and alternative markets to the developed economies (O’Neill, 2001). Emerging markets are characterized by a growing fraction of middle-income consumers, demand for goods, services, technological advancements, and discoveries. However, entry into such markets cannot be an overnight decision, as it requires planning, strategic understanding of the market dynamics and cultural differences. Issues related with intellectual property rights, taxation, employee salary packages and other market jurisdiction factors must be considered before initiating entry into the business. Brazil has distinguished itself as a major member within the BRICs block with its dynamic and promising market structure and dynamics. The country has a strong currency against other international currencies like the dollar, aptly controls its inflation rate and has an expanding middl e class population. With a steadily increasing population and a stabilized GDP, Brazil is an economy worth considering among the BRICs members. In this report, an advisory description of the Brazilian market and economy will be provided for a company that is seeking entry into the market (Cui, 2005). The factors to consider and the key areas to develop before entry into the market will be described in detail, providing an understanding of this market structure as compared to a developed economy like the United Kingdom. A Danish owned production company seeks to establish an autonomous production subsidiary unit in this country and this paper will highlight how the company can establish a strong company despite the market challenges. Brazil has cut a niche for itself among the emerging economies and as a member of the BRIC economies by developing into a country with greater purchasing power. However, as present in all emerging economies, entry into the Brazilian market is never smoot h sailing and foreign organizations must develop proper strategies to succeed. A number of issues exist in this market and economy that every new entrant must encounter and address to succeed. The government regulatory measures and programs however make new entrants into this market undergo tough challenges including high taxation and bureaucratic setting (Teixeria & Grande, 2011). Factors to consider before entry Danish business environment differs significantly from the Brazilian economy in terms of tax regimes, bureaucratic procedures and other government related factors. As such, a multinational with operations in a different country must be in a position to evaluate both the internal and external factors, which may affect the successful operation of the business. A poor understanding or underestimation of these factors has contributed to the failure of a number of multinationals across the world. A number of internal and external factors exist that are specific to Brazil as an emerging economy. In evaluating the external factors that may affect the success of Danish based multinational