Foreign Government Regulations

Another challenge that a company faces when selling products globally are the foreign regulations imposed by governments of respective countries. While there are countries that give lieu to foreign investors, there are other governments that tend to protect their local businessmen by creating stricter custom and trade laws for foreign companies.

Taxation

Taxation

Hence, appropriate feasibility studies must be undertaken if a certain country will be more friendly to foreign investors or not. Take for instance the heavy taxations imposed on tobacco manufacturers in the U.S., which in turn makes the pricing of cigarettes there higher compared to third-world countries. Thus, certain trade barriers pose another challenge to the global marketer and it is up to his capabilities how to use them to his own advantage.