Foreign Market Entry Plan Essay Example | Topics and Well Written Essays - 2750 words

Foreign Market entranceway Plan - Essay ExampleConducting PESTEL analysis is one of the congenital steps in scanning the problem environment of firms and attaining a complete overview of the various macro-economic factors that the company must take into consideration. PESTEL analysis describes the political, economic, socio-cultural, technological, environmental and reasoned factors prevailing in the industry or the firms business environment. The tool is particularly essential for businesses for making a thorough understanding and analysis of the growth or decline of merchandises, business positions, potentiality and direction of operations. PESTEL Analysis.Political Political conditions in Hong Kong seem favorable for conducting overseas businesses. Implementation of the Principal Officials righteousness System in 2002 was meant to bring about promptness and more responsiveness in the Governments actions towards peoples concerns. This is especially favorable for conducting bu sinesses because of the fact that any rising demand in the preservation would be catered to with immediate action and support from the government.The estate demonstrates an open and apologise economy where peoples rights are respected, courts can function independently and the rule of the law is highly respected in high society (US division of State, 2011). Economic Hong Kong represents one of the most open and dynamic economies. Recovering from the impacts of the global economic turmoil, the country attained high economic growth rates of 6.8%. Inflations rates have also gradually change magnitude from 0.5% to 2.4% since the pecuniary crisis. This was possible due to the governments aggressive initiatives and measures to control the risk of the housing market bubble due to low interest rates and high liquidity in the international financial dust (US Department of State, 2011). From the perspectives of conducting business operations also the economy looks favorable with a so und banking system and very little public debt. The economy has adequate foreign exchange reserves coupled with a grueling legal system. A rigorously implemented anti-corruption regime along with the above factors has also enabled the economy to adapt itself to the changing circumstances (US Department of State, 2011). The government has made a conscious initiative to provoke measures for improving attractiveness of the economy as a trading and commercial centre and has been constantly reviewing and finish the financial architecture of the economy. Hong Kong seeks to reduce trade barriers considerably. In fact it has recently included a free trade agreement with China in order to enhance potential benefits from trade between the twain countries. Its export of goods and services was highly on the rise since 2012 by about 17.3% which was attainable quickly because of the strong fiscal and monetary stimulus provided by the Chinese economy helping to recover from the impacts of the recession (US Department of State, 2011). Socio-Cultural The population of the country is steadily on the rise and has reached 7.097 million in 2012. It accounts for one of the most dumbly populated economies in the world. English accounts for the official language of the country and is spoken widely by a large group of the population. It is mandatory by