From a financial point of view what are the major strategic and operational issues which should be considered when entering into overseas markets?

INTRODUCTION According to Bartol et al, 1998, organisations must increasingly assume a global perspective in conducting their business for three major reasons. First, businesses are facing more and more global competition. Second, more and more companies are likely to be doing business in other countries. Third, businesses are increasingly becoming globalized in the sense of operating as one company, despite far-flung operations. Parkinsons 2001, ascertains that; "As companies take a more global perspective in their trading activities, …

…perspective to their trading activities. Investing overseas, and the financing of such activities, needs to be given great consideration. As highlighted there are many more risks and areas which need to be considered when investing in a foreign market as compared to the domestic market. The cost of setting up and carrying on a business overseas are crucial factors which need to be investigated thoroughly in order to ensure the success on an overseas venture.