Whenever an organization expands its operations to other countries, it tends to become multicultural and will then face the challenge of blending various cultures together. The managerial personnel entering another nation need to adjust their leadership styles, communication patterns and other practices to fit their host country. Their role is to provide fusion of cultures in which employees from both countries adjust to the new situation seeking a greater productivity for the benefit of both the organization and the people of the country in which it operates. Read More: Human Resource Management from an International Perspective Managing Workforce Diversity Managing International HR Activities Selection Criteria for International Assignments Barriers to Cultural Adaptation Managers and other employees who come into a host country tend to exhibit different behaviors and somewhat, see situation around them from their own Continue reading
International Business
International Business Management deals with the maintenance and development of a multinational operation across national borders, whose manager has the knowledge and the skills to manage and handle cross-cultural processes, stakeholders and business environments in a right way.
Global Market Models and Concept Analysis
Managers must be conscious that markets, supplies, investors, locations, partners, and competitors can be anywhere in the world. Successful businesses will take advantage of opportunities wherever they are and will be prepared for downfalls. Evidently, successful managers, in this environment, need to understand the similarities and differences across national boundaries, in order to utilize the opportunities and deal with the potential downfalls. In developing appropriate global strategies, managers need to take the benefits and drawbacks of globalization into account. A global strategy must be in the context of events around the globe, as well as those at home. International strategy is the continuous and comprehensive management technique designed to help companies operate and compete effectively across national boundaries. While companies’ top managers typically develop global strategies, they rely on all levels of management in order to implement these strategies successfully. The methods companies use to accomplish the goals of these Continue reading
Negotiations Between Host Governments and MNEs
Home and host countries evaluate business propositions of Multinational Enterprises (MNEs) from their points of view. The evaluation relates to size, place, product, price, process, people and partnership related issues. Negotiations are take place between MNEs and host government whenever consensus is not reached on major issues. Here comes the importance of business-government relationships. The business negotiations and diplomacy between companies and governments determine the terms of international business operations. MNEs attitude to Governmental Stipulations Multinational Enterprises (MNEs) attitude to Governmental Stipulations may be one of complying. This is highly positive. In a hierarchical view of governmental authority, companies accept regulations as ‘givens’, and MNEs comply with. Occasionally they try to circumvent, avoid or repudiate operating because of the regulations. MNEs comply with Government regulations when the regulations don’t unduly constrain their desired mode of operations, when benefits are sufficiently attractive in spite of regulations, and when they cannot practically Continue reading
Transport Documents used in International Trade
In international trade, the goods move from the warehouse of the exporter to the warehouse of the importer. The goods may move by land water or air or a combination of one or more of these modes. In international trade, such transport documents are more in number and it is very important to know the significance of each type of document and its nomenclature, etc. One of the important aspects to be remembered with regard to any transport document is that it must show the name of the carrier. 1. Bill of Lading This is a transport document, which represents the movement of goods by water. A Bill of Lading is a formal receipt given by a ship owner or their authorized agents stating that the goods mentioned therein (quantity, quality, description etc.) are shipped on a specified date and vessel and are deliverable to the person mentioned therein or Continue reading
Price Component of the Global Marketing Mix
In any country, three basic factors determine the boundaries within which market prices should be set. The first is product cost, which establishes a price floor, or minimum price. While it is certainly possible to price a product below the cost boundary, few firms can afford to do this for extended periods of time. Second, competitive prices for comparable products create a price ceiling or upper boundary. International competition almost always puts pressure on the prices of domestic companies. A widespread effect of international trade is to lower prices. Indeed, one of the major arguments favoring international business is the favorable impact of international competition upon national price levels and, in turn, upon a country’s rate of inflation. Between the lower and upper boundaries for every product there is an optimum price, which is a function of the demand for the product as determined by the willingness and ability of Continue reading
Multinational Corporations and Technology Transfers
In this world many things can be shared, transformed and utilized which helps to the development of civilization, but knowledge is the rarest of rare wealth that cannot be stolen and it remains intact with a person until it is expressed. Once it is expressed, there is no guarantee how it is used and manipulated. To control this unauthorized use of technology several laws like patent laws, copyright laws etc. were drafted all around the world. Knowledge is recognized as one of the capable resources for dynamic global business environment. Technology transfer is not an easy issue it has potential to influence the political and financial relations of countries also. Multinational companies are having a rare opportunity to transfer the new technology to the developing countries. In recent times the link between the technology transfer and foreign direct investment through multinational companies became central plank of the issue in all Continue reading