international business assignment help

international business assignment help

The Impact of Globalization on International Business: Strategies for Success

1. Introduction to International Business

The process or the international way of doing business involves traditional business tasks, which include production, marketing, expenses, and human resources, and must adapt to diverse cultures and different structures of e-contract coordination of enterprise in different political, social, and ownership systems. In other words, international business activities deal with the biological, ecological, and cultural differences and similarities that exist between residents of different world regions and bring into play political, social, legal, financial, and marketing factors appropriate for commercial transactions taking place between several countries.

Business is generally classified into the following broad categories: – Domestic business, where most of the top earners are employed, which is concerned with activities in the country of operation. – International business, where a business engages in international activities or has its corporate headquarters in one country.

1.2 What is International Business?

International business today has been replaced by a new challenge. The challenge is present because of globalization, which is the climax of the global evolution. The international business field is dynamic and describes the behavior of firms with the globalization of the market. Given the fact that international business activities are central to the globalization question, we are convinced of the need to offer an overview of the subject. The concept of international business fluctuates rapidly, and the current expansion in multinational activity represents only one aspect of this. The main message of this book is that the very concept of international business is diverse. Our aim has been to capture this diversity and hence provide an appreciation of the issues and range of situations that comprise the many pictures of international business.

1.1 Introduction

2. The Role of Globalization in Shaping International Business

The modern form of globalization began after the overthrow of the nationalist regimes of Western Europe and Asia and Latin America and the adoption of free market capitalism in the early 1980s. These changes allowed the free flow of resources, capital and people worldwide. These strategies were a complete reversal of the dual economic strategy that had been followed during the 1960s and 70s when governments had adopted import substitution and export-led policies to try to insulate their economies from the global economic system and to control their area of influence. As with all major strategic business shifts, globalization presents multifaceted opportunities and challenges and hence generates the need for new management strategies. The business world never remains static. Indeed, in the 2nd decade of the 1990s, the economic forces behind the current system of globalization have begun to mature and subtly shift their focus, thus changing the scope and shape of international business. Such changes have major strategic implications and potential ramifications for the business world.

The world is changing rapidly, especially so in the business and economic world. The last few decades have seen unprecedented levels of global growth and the worldwide movement away from authoritarian regimes towards more democratic and market-oriented approaches to doing business. This transformation is often represented as globalization. The concept of globalization is not a recent one, and many experts agree that international business is not necessarily the result of globalization. International business is old and traditional, while the current process of globalization is relatively young. Although the interdependency of countries often involves transferring jobs or entire industries from one country to another, with the existence of international business there is always a balance between doing what is good for the company and doing what is morally right.

3. Key Strategies for Success in International Business

Many American companies are at the forefront of companies that have tested international strategies. Along the way, others have made mistakes and have paid dearly for the lack of strategic insight into the independent decisions and adaptations required to implement strategy in the global marketplace. Some leading companies viewed the decision to go international as a step in strategic growth with prophecy; others debated this strategic growth step as a temporary phenomenon and temporary business strategy. As they gazed at business strategies, some companies saw only costs, complications, control issues, and liabilities rather than, as others saw, development and growth of business strategies as competitive and complementary and a movement toward these strategies designed to improve corporate solvency. Each of these contradictory views reflects an element of the array of considered judgments for managers involved in planning or managing an international business.

Given the increasing use of options such as international joint ventures, international acquisitions, licensing, and new plant construction as ways of entering new markets, today’s international company is faced with a highly strategic decision process covering a wide range of possible strategies for going international. Once being international, all the economic, political, and cultural factors observed in earlier chapters make international business even more challenging. Because these factors act across national boundaries and involve transactions by companies that are only fractionally present in foreign markets, international business managers face a more complex business environment. These factors require additional management and control of the business units functioning in a number of different country settings where varying strategies and adaptations are often required to achieve primarily business goals.

4. Challenges and Risks in International Business

The risk of political changes or economic changes is minimized when companies can spread and diversify their locations with sales, production, managerial, and distribution. A company can only survive when it can meet the changes in the economic, political, and cultural level. Owing to the fact that international business is expanding globally, there will always be risks, and these hurt global expansion: “An awareness of the cultural and political features of the world market is not enough for practitioners in international business.”

Political, economic, and cultural changes are always major risks for international business. It is important for international business people to understand that “political rules and systems vary enormously between countries and that business decisions should be carefully taken in the light of these factors.” Most of the changes in the international arena have resulted in the size of businesses doubled or tripled. The amount of trade has increased, helped by the availability of foreign exchange. Thousands of enterprises in the United States can now operate abroad. Most of the world’s 100 largest economic units are companies.

5. Case Studies and Best Practices

Many of the earlier cases in the chapter part are only tangentially related to today’s issues in international business, and a few may not appear related at all. Nonetheless, all of them do provide insights into strategic management that can be, and often are, relevant for international business strategy. Clearly, managers should always be mindful of the bigger world outside their organizations, should be aware of such issues as exchange rate fluctuations, rising protectionism in some markets, threats of new trade agreements, and the shifting political landscape elsewhere.

Case studies and best practices are where the theory of international strategy is transformed into real, practical applications as we study the strategies for success of individual firms. Our focus on business strategy reflects the view that international business strategy is really no different than any other type of business strategy. If there are significant differences, it is because we are making an erroneous assumption about the existence of an organization called the multinational; the canvas upon which we paint our strategies is much larger but ultimately, it is still a painting exercise. The firms in the first chapter operated many years ago, and international business was a very different creature then. The firms in the last chapters are representative of today’s multinational firms doing business in a global world. Not only are they more diverse and larger, but also the complexity of their business dealings is far more treacherous.