Challenges of international business management what are the challenges of international business management? international business management is a term that is used collectively to describe all commercial transactions which include private governmental investments transportation the above take place between two or more nations. It involves all business activities which partake in cross border activities of goods, services and resources between nations. Private companies and the government partake in international business for profit and political reasons respectively. Every business has its difficulties and presents is own challenges in when it comes to operating it successfully.

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Countries and firms that operate in the international firm undergo challenges and they prove how successful the company or country shall be. Challenges faced in international business the main aim of any international business is to be successful in the countries they are operating and make their products or service a global name. The challenges that are brought about by international business include: political system and policy economic policy legal policy language/ communication barrier environmental standards corporate and local culture foreign exchange markets import and export regulations trade agreements all the above are the most common challenges in the international business sector that affect countries, local firms and global industries.

Challenges in international business is broad and it affects different sectors that is 1. The firm and international business the presence of international business in the country example – uganda causes strain in the local business industry. It is considered rather difficult to penetrate the local industry due to the presence of international, multinational and private companies.

The challenges brought about by international business to the local industry/firm include the following  less local production  loss of domestic jobs certain labor intensive industries textile and software development industry. σ� barriers to enter the market and the primary aspect which can badly influence to business performance. σ� business may need to wait for long term gains  financial problems the challenges brought about in the local industry are similar to those in international businesses. The country, industry and international business international business is considered to be very significant in a country and its industry due to the presence of multinational companies.

International trade is the exchange of resources, goods and services between two countries. The trade can only occur when both countries are aware and are in agreement of the terms to trade. To a country and industry, international business enhances the infrastructure of the whole country. This brings about profitable investments, innovation, creation of jobs and it enhance the political and economical sector of a country. Example – the flower industry in kenya however with international trade, brings about barriers and challenges in the two operating countries. Challenges the country and industry faces when attempting to trade in a different country are as follows: i economic factors the host country plays an important role in the decisions of the country or industry it shall trade with. It must asses the foreign exchange control policies, the tax structure and the tax policies of the host country must be studied and considered.

Some of the economic factors to be considered are: a gnp, income levels of the work force and the proportion of disposable income, saving habits of the population, economic growth trends, trends in industrial development, inflation rate, interest rate. Our writers can help get your essay back on track, take a look at our services to learn more about how we can help. Essay writing service essay marking service place an order considering risk in international business business has no idea about the local risk. It's difficult to operate and manage in such condition where the culture, social, economic, political, and legal structure are not stable. In such cause the international business need to take all the measurement either it`s commercial, culture, social. Mcculloch, c.19 international business is started as with the formation of first national borders.

Greek started such activity before the christ follow by the british in 1600 when they establish the east india company throughout the asian as trading firm. With passage of time international business is started all over the world especially in united state. It exchanges the ideas, information, service, and capital across the country's borders. Equal growth of wealth, price stability, availabilities of goods and services to each and every one. It bring new environment of friendship, development, stability, prosperity, innovation and technology in the world.

Due to the international business same kind of product are used throughout the world. For example ford, toyota, honda, and mcdonald, kfc, burger king, and so many other things which are use worldwide. For example dell computer it different part are produced in different countries, assemble these parts in another and sell it in yet other countries.

It involved the international movement of good, capital, services, employees and technology importing and exporting cross border transactions in intellectual property patents, trademarks, know how, copyright materials, etc via licensing franchising and management contracts. Rdquo book3 ldquo the transaction done by individual or organisation cross the countries. To satisfied the objective by mean of export, import and foreign direct investment. And it carried out in wholly owned, joint venture, licensing, franchising and management contracts rdquo book4 international business experiences some difficulties when they operate in other countries. When deal in other countries their culture and social value must be taken in account.

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The risk factor is high in foreign countries include political, commercial, and financial. Without it there will be no ldquo culture rdquo no ldquo organisation rdquo and no ldquo society rdquo. Stability is a ship in the sea which maintain its upright position either the condition is. Stability maintain for long period of time and it resist to all the changes that happen in the surrounding. Rdquo if we come to the countries stability it has great impact on all walks of life.

And their well be no social security, health care, education, defence, infrastructure, law and protective services, low gdp, gni, and p purchasing, power, and parity , price fluctuation, un stable exchange rate, high rate of taxes, no leadership, no culture values, no innovation, no technology, financial position of the countries will be week, and have no capital market. Business development and prosperity are depending on the local and national conditions.bbok1 for example both south and north korea. North korea tries to attract the foreign investment but ldquo poor infrastructure, un reliable power supply, poor transportation and unstable military condition rdquo are the big barriers for the foreign investor. On the other hand south korea has stable political, economic, legal environment, and stable infrastructure. Which cause of attraction for the international business and south korea main stream business are daewoo, hyundai, and lg. Who wrote this essay request removal example essays j9 different business made their own criteria to measure country in stability but mostly the factor involved in country in stability is closely related to each other.

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political instability economical instability cultural instability legal instability financial instability location and neighbourhood book3 political stability play an important role in the stability of the country. Due to political stability international business are attracted to invest in the country, despite their location, weather, and natural resources availability. Boo4 politics is define as ldquo the direction and administration of state rdquo ldquo government rdquo and ldquo the control of aggregate social relationship rdquo bbok5 however, political instability is a great risk for the international business. Ownership risk, in some causes the ownership of the international business is shifted to the host country without any compensation to international business through confiscation or expropriation.

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Due to the security, change of law and government, terrorism, arm conflict, civil war, tax regulation, and so on. Transfer risk, transfer of money from one country to another, in which the government rules are involved, high exchange rate, and tax on transfer of money. J5 political instability rise due to continuous change in government, and law, nationalism corruption in the government officer. Terrorism, internal is external war arm conflict , kidnapping, example afghanistan, pakistan iraq, and serra. Jouranl2 according to gupta 1990 he use ten elements to explain the political in stabilities. Ldquo number of political demonstrations rdquo ldquo number of riots rdquo ldquo number of death assassinations rdquo ldquo armed attack events rdquo ldquo political executions rdquo ldquo number of death from political violence rdquo ldquo occurrence of successful coups d' tat rdquo ldquo occurrence of un successful coups d' tat rdquo ldquo number of strikes rdquo and ldquo nature of government rdquo democracy or dictatorship.