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1. You have successfully grown your local pasta company and while traveling in other countries you found that you might be able to produce and sell your product profitably there as well. In exploring these opportunities further, you were surprised to find that one of these countries has much stricter ingredients labeling and contents laws, while the other country much looser ones (in comparison to those of your home country, which you considered to be pretty strict to begin with). All three opportunities look to be profitable, regardless of the differences in regulations. Which regulations do you abide by in each country? The strictest ones, or the respective country standards, even if they are different?
This scenario provides a huge business opportunity that not only can take this small pasta company into multiple other countries but can add value to the company’s reputation both domestically and internationally. As a business minded individual using the strictest of regulations in labeling the company’s pasta the company shows both transparency in its ingredients but also its quality of the pasta. Also, by using the strictest of labeling for the company’s pasta the company cuts the additional costs of producing multiple packaging for its pasta. One packaging that satisfies all three countries packaging requirements.
This is one of many opportunities that companies can encounter when expanding their product into multiple countries. By reviewing something as simple as packaging and labeling standards a company can determine what offers a company the best opportunity to include ways to save money while generating additional revenue. The scenario above shows the potential for costs savings in its packaging by following the strictest of labeling standards of the three countries. Other instances can occur when regulations differ from country to country and force companies to change their strategy and adhere by local laws. These companies may still face additional risks that stem from ethics and cultural differences when offering products in foreign markets.