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International Business Challenges in a Globalised World Introduction The globalisation of business and commerce has become an increasingly significant reality worldwide: The rise of globalisation posits a number of important challenges to a business seeking international presence.
Numerous strategic aspects must be taken into account prior to commitment at an international level, and afterwards. Constant flexibility is required to adapt to changing patterns at local, regional and international levels.
This research paper seeks to identify the main issues affecting international businesses, including accounting practices, cultural issues, strategic choices and political risk. Globalisation is usually divided into globalisation of markets and globalisation of production Hill According to Levittmarket globalisation implies a standardisation of products across the world as national barriers become less and less relevant.
Instead, production globalisation appears more of a reality.
Globalisation of production refers to the sourcing of goods and services to take advantage of a difference in the factors of production land, labour, capital.
Globalisation of production continues to suffer from trade barriers, costs of transportation, economic, social and political risks and others Hill While trade barriers have been significantly lowered since World War II, formal and informal barriers continue to survive.
Globalisation has significantly impacted on the business environment, prompting the development of the multi-national enterprise MNE. The governance of the MNE is recognised as being different than that of a national company. For instance, Bartlett and Ghoshal have introduced the influential concept of the transnational model, which allows the transfer of knowledge developed and jointly shared on a worldwide basis.
In order to create a successful global business, Bengley and Boyd have underlined the importance of a global mindset, defined as the ability to develop and interpret criteria for business performance that are not dependent on the assumptions of a single country, culture or context.
Corporate management must not automatically assume that the culture of the home office is equally applicable elsewhere Bradley Strategic Choices for International Business Beginning with the pioneering work of Perlmutternumerous scholars have emphasised the importance of adopting a global strategic approach to business i.
Hamel and PrahaladYip However, the optimal strategy for tackling global markets has been a matter of dispute. Often scholars propose an evolutionary view of strategy, which goes from a simple international strategy to sophisticated transnational solutions Hill Under the international strategy framework, international business is not a core interest of the firm.
As the international business develops, the company may decide to source some components from overseas, and to standardise some of its products.
As Briscoe and Schuler point out, when a certain critical mass develops, the company must choose other, more complex strategies of tackling the international market. This type of strategy emphasises local responsiveness, but this is often achieved at the expense of costs and possibly quality.
The global strategy was promoted by Levittwho considered that globalisation naturally results in uniformity of consumer taste. In this framework, a company could achieve significant economies of scale by producing the same standard product at a global level."What Special Issues Arise In International Business Transactions" Essays and Research Papers.
What Special Issues Arise In International Business Transactions. 3. What are the similarities and differences between international business, International.
The essay section is the most important part of any application, see the types of essays successful applicants have used to apply to business school. The paper identifies the issues affecting international business, including accounting practices, cultural issues, strategic choices and political risk.
International Business Research Paper Topics Ideas Here are some examples of good research paper topics on international business: Give examples of the most successful startups for the last five years.
Management Research Paper Topics. Management Research Topics Part 1: Entrepreneurship. Organizational Emergence: Business Start-Up Issues; Corporate Entrepreneurship; Social Entrepreneurship and Social Enterprise; the special issues that women must address in starting new businesses, how to go about planning new .
special problems in international business What make international business strategy different from the domestic is the differences in the business environment.
The important special problems in international business are as follows: 1.