Assessing a Country as a Market

It is important to conduct thorough market research when examining a new international market. This research should consider the size of the market, its growth rate and potential, segmentation, consumer behaviour and trends.
The overall economy of the country should be assessed. Factors such as gross domestic product (GDP), inflation rates, unemployment rates, interest rates, and exchange rates need to be considered.
The political environment should also be analysed. This includes understanding the stability of the government, the regulatory environment, legislation affecting your business sector, trade agreements or restrictions and tariffs.
Investigate the infrastructure of the country. This includes the transportation systems, port facilities, telecommunications network, availability and cost of utilities and the presence of industrial zones.
Cultural factors are crucial in evaluating a market. Understand cultural norms, values, attitudes and consumer preferences. Ensure that your product or service can be adapted to meet local tastes or demand.
Evaluate the competitive terrain. Identify direct and indirect competition, market saturation and understand your competitor’s strategies.
Assess the level of country risk including factors like political instability, economic recession, terrorism, corruption and natural disasters.
The country’s legal environment should be considered. This includes understanding business law, intellectual property rights, contract enforcement and dispute resolution.
Consider the social factors such as population growth rate, age distribution, education levels, income distribution and lifestyle trends.
Environmental factors like climate, geography, and sustainability policies of the country could affect certain businesses.
Assess the availability and cost of human resources within the country. How easy is it to recruit and retain local employees?
Lastly, the financial aspect should be evaluated like costs of setting up a business, tax structure, availability of financial assistance or incentives, and repatriation of profits.