Module 1: Exploring the international context of business operations

Choice of markets in which to operate

Businesses can choose to work in developed economies, less developed economies or developing markets.

Examples of these are the United Kingdom or countries such as the United States or western European countries. They are relatively easy to trade with. The trading rules have been set and business support systems are in place. However, they can be very competitive markets with local businesses as well as businesses from other countries already operating in the market.

Examples of these are India and Brazil and countries in the Middle East such as Qatar, amongst others. Emerging markets offer many opportunities for growth as their economies grow. This creates opportunities to gain greater market share if a business is able to establish itself in the country, especially if it has a strong brand or product/service that is not already available in the market. However, less developed or emerging markets can bring higher risk. Often their infrastructure (roads, distribution systems, banks, communication technologies) has not developed sufficiently to conduct business effectively. Their governmental systems can also be volatile.