Academic journal article ASBM Journal of Management

Managerial Challenges in International Business

Academic journal article ASBM Journal of Management

Managerial Challenges in International Business

Article excerpt

Introduction :

Globalization refers in a way to joining of hands by different countries to create a kind of synergy for commercial, social, cultural or educational activities resulting in benefit to all the participant nations. The main objective of globalization has been to open the doorways for each and every nation to an open trade economy. It is about the policy of one for all and all for one in order to foster international ties and also to help the developed nations to prosper and the developing nations to grow in their midst by promoting oneness.

Globalization has brought a zenith of different markets and cultures, which have in turn created a mosaic in the international markets. International business deals with engaging in business among multiple countries. The concept of globalization was first introduced in the year 1776 by Adam Smith, the father of modern economics, through his magnum opus "An Enquiry Into the Nature and Causes of the Wealth of Nations" and has been prevalent since then.

A business (also known as enterprise or firm) is an organization engaged in trade of goods or services, or both. The oxford dictionary defines an organization as "an organized group of people with a particular purpose, such as a business or government". Trade is about the transfer of ownership of goods and services from one person to another for exchange of a certain value which may be in the form of money or any other service. A consumer is the one who consumes the goods and sendees that have been produced thus playing a vital role in the growth of the economy.

Moving further, we would be able to understand that a more specified form of business would be International Business that is carried on all over the globe. In International business, the locus shift is towards the whole world as a common place for trade. Perceptions of consumers, cultural differences, the ability to allow joint ventures, infrastructural availability, availability of cheap employment, governmental policies, relations of the home country with the host country etc. are the determinant factors of successful international business.

According to Holden (2000) "The modern world of business is, in effect, creating new kinds of cultures, which are perhaps better understood as infinitely overlapping and perpetually redistributable habitats of common knowledge and shared meanings".

A number of studies have been done to find out:

1. Whether International Business is synonymous with Big Challenges. [Ibeh et al (2009)]

2. The various challenges in the development of International Business. [Aijaz et al (2009)]

3. The meaning of international Business. [Michael E. Porter (2000)]

4. Identifying important research issues at the international, corporate, and business levels of strategy research. [Gregory G. Dess et al ( 1995 )]

Objectives:

1. To understand the problems associated with international business in the past;

2. To present a perception of the issues and challenges that a business manager faces while doing International business;

3. To understand from the existing literature the challenges in international business; and

4. To suggest a few precautionary measures that companies can take while thinking of international business in today's world.

Review of Literature:

The study of Ibeh et al (2009) reflected its complex and diverse contexts of enactment; moreover they stated that international business is synonymous with big challenges. Cultural and institutional complexities remain as potent as they have always been, but have been joined by newer concerns such as climate change, international terrorism, and international fraud. This timely work examines these challenges from the perspectives of the different players and actors in the international business arena, including foreign investing multinational corporations, international small and medium sized enterprises and their multifaceted liabilities, emerging market/developing country firms and women managers from the Middle East. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.