Though Interest is Tempered by Legal, Regulatory, IPR and other Issues, Which Are Hard to Control and Manage, Especially Within the Context of Limited Time and Resources

While macro factors seem to attract respondents initially, both external and internal micro concerns appear far more important as they move into to the strategy development and implementation stage.

Respondents ranked external factors such as "Legal/Regulatory Issues" (6.15), and "Lack of IPR Protection" (6.06), as the most important obstacles to expanding their international business presence. This was followed by ""Lack of Time" (5.77), Communication/Distance" (5.61), "Lack of Financing" (5.61), " Lack of Knowledge/ Expertise" (5.57), "Language/Cultural Barriers" (5.56) and "Lack of Local Management" (5.54). Interestingly, unlike Question 9, where macro concerns received the highest ranking, in this case "Political/Macroeconomic Risk" (5.41) was accorded the lowest importance. The diversity of opinion reflected in the deviation while generally high, was about average within the context of this survey, other than "Lack of IPR Protection" and "Lack of Financing", which was high even in that regard.

What appears interesting here is that the differences between answers in Questions 9 & 10 may be due to the gradual decision by which foreign investment and international expansion decisions are made. This may indicate that the primary initial motivation is one of promise and potential, in which companies are attracted by the possibility of being able to take advantage of macro trends. After that initial decision, however, micro concerns become far more important and indeed critical if one is to realize a successful market entry.

These varying concerns can be seen in the comments of respondents. One Design Consultant emphasized how macro forces were helping to drive their interest in international expansion, noting, "We have been losing money through the unstable US dollar against other major currencies such as the Euro and Japanese yen." At the same time, a Technology Executive addressed the micro limitations faced as one moves into the implementation stage. He commented, "European markets are blocked by artificial barriers under the pretence of "safety regulations', and emission standards that are different just to block imports. This is combined by the resistance of regulatory agencies to US companies -- for example I had to walk into a French office to get what I had requested by mail."

In addition, a Midwest-based Industrial Equipment Engineer spoke of the need to balance domestic and foreign considerations, stating "Goal one is to provide for our remaining industrial customers and help them remain as competitive as possible - "The Arsenal of Democracy". Goal two is to keep our eyes and ears open to an expanding world of opportunities."

Finally, many respondents, such as one Midwest-based Engineer stressed the difficulties, and often happenstance nature of dealing internationally, both in terms of time and resources noting, "When the market is far away, there are relatively large costs that get in the way of operating at that distance." This sentiment was expanded on by an Optical Manufacturer, who stated, "Lack of Time is very important and we could certainly use more opportunities. To tell the truth we do not really seek opportunities. We’re not big and do not want to get swamped. Through associations with companies we work with we often receive referrals. I rely on that a lot, and so far it has worked well."

Respondents' quotes

"When the market is far away, there are relatively large costs that get in the way of operating at that distance."

<"We have been losing money through an unstable US dollar against the other major currencies, particularly the Euro and Japanese Yen."/p>

"Goal One is to provide for our remaining industrial customers and help them remain as competitive as possible - "The Arsenal of Democracy". Goal Two is to keep our eyes and ears open to an expanding world of opportunities."

"Europe markets are blocked by artificial barriers under the pretence of "safety regulations', and emission standards that are different just to block imports, resistance of regulatory agencies to assist US companies – for example I had to walk into a French office to get what I had requested by mail."

"Once again: we will refuse to sell into the EU because of concern for potential entanglement in WEEE regulations and the extra costs of ROHS compliance."