Foreign markets exist outside of your home nation‘s political borders. Global markets introduce increased populations that can be targeted for higher sales and profits. Overseas markets also might offer a more accommodating sales environment because of fewer entrenched competitors.
Foreign markets can be categorized into developed and emerging markets. Industrialized nations, such as the United States, Germany and Japan, represent mature markets, with relatively stable political regimes and commercial environments. Emerging markets are identified by their higher profit potential and heightened risk levels. For example, Nigeria is an emerging market where portions of its abundant oil reserves are often shut out from the global economy because of rebel warfare.
Larger businesses gain entry into foreign markets by establishing overseas operations. Coca-Cola and McDonald‘s are examples of multinational corporations that maintain formidable global presences. Multinational companies can thrive overseas by making small cultural adjustments to their current brand. For example, in the United States Nike focuses on football and basketball advertisements, but it often rolls out expansive soccer advertising campaigns in Europe. Smaller investors can enter foreign markets through financial exchanges. These savers can buy shares of stock in multinational firms such as Coca-Cola, or can buy into global mutual fund
shares for international exposure.