in the target market. This includes information about the size of the competition and common business practices, and the level of technical development that the competition has achieved. In the case of Disney, the American company will have a unique product which has not yet achieved a presence in the foreign market. This does not mean that competition can be ignored. Instead, the American company needs to recognize that by entering the foreign market, it is likely to bring about imitation by foreign producers anxious to take advantage of the American company's entrance. As a result, likely competitors can be identified based on their technical expertise, and strategies developed for dealing with them in the event that they enter the market.
It is also important that the American company recognize the legal environment that pervades the target market. This includes understanding the laws, regulations, codes, tariffs and taxes that apply both to domestic and foreign companies. Some countries, for
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