Foreign market entry requires consideration of a number of issues: assessing the market potential of prospective countries, evaluating and selecting a mode of entry, assessment of the firm"s capability to operate in the selected environment. Assessing markets using a logically step by step approach is critical to successful market entry. Country selection is driven by a number of considerations: cultural distance (or more broadly psychic distance - defined as anything which disrupts the flow of information and knowledge between host and home countries), geographic distance. The lower the degree of cultural distance the more relevant the firm"s previous experience is likely to be. If the company is successful with its business model in one country it is likely to also be successful if the model is transplanted to a similar country. Steps to country selection ( a ) macro-segmentation: macro-segmentation involves the development of segmentation criteria that can be applied to group countries for marketing purposes.