Factors influencing the choice of market
There are a number of factors that affect the choice of market:
Type of product
For example, some countries across the world have a high percentage of people who follow the religion of Islam. The religion of Islam forbids the consumption of alcohol so an alcoholic beverage manufacturing company might not choose to expand into those countries.
Costs
It is necessary to ensure that selling costs in markets are not excessive, e.g. due to export costs, taxes or tariffs.
Market size
Market size will be a crucial factor, as well as its demographics, i.e. population pattern. It is necessary to be sure that there is a market of sufficient size to make the risk of trading abroad worthwhile.