Environmental Analysis and Market Entry Decisions

Global marketers invest resources to understand the most suitable policies for entering foreign markets. This involves conducting a thorough analysis of the political, regulatory, and economic environment. This information is later used to estimate the size of potential markets, their relative attractiveness, and the most suitable strategy for entering such markets. The information gathered during an economic analysis is instrumental for estimating the size of a new market, which facilitates the process of selecting which market(s) to enter, as well as provides baseline estimates of sales, market share, revenues, and profits in a foreign endeavor.