International Markets

Introduction

International markets as a country or a group of countries, which can consist of customers from several countries (Hollensen, 2011).

Potential determinants of the firm's choice of foreign markets

In context of textbook suggested that the international market selection can be classified two groups: global industrial environment and firm's characteristics. Such as the typical model of international market selection by business service companies by O'Farrell and Wood determined, consider the market size, geographic proximity, cultural distance, market similarity, size, government regulations, and the firm's international experience, servicing home country clients, oligopolistic reaction and international location choice (2002). But it was argued by the author that the data of this market is based on a nation by nation, also, the cross-national statistics are not easily to access accurately. Because overall the world market, distribution management and media still usually correspond to the products resources only in one country as result in the political agreement or present governmental behaviours (Hollensen, 2011).

To identify the theories above by specific evidence, Wal-Mart, the largest retailer in the world was established in US in the year 1962 by Sam Walton, and grew steadily with sales figure of $218 billion and some 4500 stores by 2002 all over the world. The competition in the domestic market by the year 1990 made Wal-Mart to think of expanding and by 1995 they were already present in 50 states of USA and by the year 2000 the company decided to go global as they could sense saturation in the US market. With having substantial market share in general merchandising where it already had huge market presence, allowed the company to successfully foray into food retailing and make a huge dent in the market share of