The revocation of the communication barriers has shrunk the world and has made it a global village. Nowadays my firm does not only have competition with only the firms in my area or my region but also I m open to a global competition. “In a global economy of 21st century our competition is not just the firm down the road. Our competition comes from anyone in any corner of the world, with good idea, a good education and a good internet connection” explained SBA acting administrator Sandy Baruah.

At present, the recent global recession has made the expansion of businesses very difficult. A firm need to consider a lot of factors for the expansion, whether the expansion is local or global. The first major decision for the entrepreneur is to expand locally or he should go global. Few things that I kept in mind are present position of my business;

·         The market share (big player/small player)

·         The type of business model (Franchising, licensing, joint ventures and etc.)

·         Potential partners

·         Infrastructure

·         Planning and creating operating models

These factors can be summed up in a three fold classification (hot-moderate-cold);

1.      Political Stability

2.      Market Opportunity

3.      Economic development and performance

4.      Cultural Unity

5.      legal barriers

6.      Physiographic barriers

7.      geo-cultural differences

The first four are considered are hot factors and the last three are considered as cold factors. This classification is a conceptual framework by Jagdish N. Sheth and Richard J. Lutz (University of Illinois), it is a multivariate model for multinational business expansion. It is an analysis based on the empirical data provided by the companies of that country or region. 

The business that I want to take off shore is of mall-daycare services with also repair services for the shoppers within the malls. Firstly, a brief description about my work is that This is a service oriented business that we would like to export to other countries. The service would include mall-day care services and other small side businesses like mobile repair and computer hardware. These repairs take huge sums of money from the foreigners. We tend to provide these services at a much cheaper rate. The costing and profit margins would be comparatively low, internationally.