Globalization…When is it Right for a Small American Company?

Today's companies are instantly evolving and developing. As a company grows, so does its appetite for profit. Most believe that off shore-outsourcing is a quick solution to reduce costs and therefore increase profit. Though there may be occasions where this may be the answer, there is more to consider when introducing your company to an increased risk of failure. Globalization may not be the answer your company is currently looking for; however, acknowledging this issue can save your company time and money. Timing is also an important factor on how it can change your outcome of failure to success. The globalization process needs to be set and followed so that goals are met and continue to be met in the new market. This is why it is important to really consider the market you are entering and why you choose it. This research study will consider how the globalizations process can lead to success or failure. The role of an entrepreneur in a society is a difficult one. Entrepreneurs in second or third world countries face obstacles that entrepreneurs in the United States could not even dream of. In Mexico for instance the decision to open a restaurant will most likely involve illegal payments to the inspector and licensing board. In countries like Kenya and Guatemala there is a total lack of basic infrastructure like health care, sanitation, transportation and basic institutions such as stable political party's neighborhood and legal systems free of corruption, that entrepreneurs in the United States often take for granted. The decision to sell your product in a second or third world country must take into account all that is lacking in terms political economic, social and legal institutions that as of already stated, entrepreneurs take for granted