...al The cultural, political and legal environment of international business Abstract A study of the elements of a domestic market and those of an international market may reveal many crucial differences, especially political, legal and cultural differences. For example, the "rules of the game” of business in the international market are diverse, changeable and often unclear. The international firm may have to content with different legal and ethical standards in different host countries. In this paper the parameters of the political, legal, and the cultural environment of international business will be considered, The paper also relates how political, legal, and cultural incidents or situations may become roadblocks to the smooth operation of business ventures in foreign countries. Misunderstandings and breakdown in communication often arise from differences in perception by executives who are not from the same cultural, legal and political background. International investors need to know what elements in a foreign culture have the greatest influence over consumption patterns in general and particularly the consumption behaviour to their specific product. By reflecting on the language, religion, demography, climate, values and beliefs, education, labour, roles of women, family, ethnic groups and other similar elements, the international business person will be able to, not only participate in the international economy with a better perception of the situation, but also be able...
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...|Qualification |Edexcel BTEC National Level 3 Extended Diploma in Business | |Unit number and title |Unit 39: International Business | |Learner Name | | |Assessor Name | | |Date issued |31/10/13 | Assessment criteria to be assessed in this assignment |Criteria Reference|To achieve the criteria the evidence must show that the learner is able to: |Task No. |Page No. | |P1 |Explain the international business environment in which a selected organisation operates |1.1 | | |P2 |Describe the mechanisms that regulate international trade |1.2 | | |P3 |Describe how the environment and culture of another country affects |1.5 | | | |a business operating internationally ...
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...Journal of International Business Studies (2006) 37, 525–543 & 2006 Academy of International Business All rights reserved 0047-2506 $30.00 www.jibs.net Cross-cultural competence in international business: toward a definition and a model James P. Johnson1, Tomasz Lenartowicz2 and Salvador Apud3 Crummer Graduate School of Business, Rollins College, Winter Park, USA; 2Deparment of Management, International Business and Entrepreneurship, College of Business, Florida Atlantic University, Boca Raton, USA; 3LBJ School of Public Affairs, The University of Texas, Austin, USA Correspondence: Dr James P. Johnson, Crummer Graduate School of Business, Rollins College, Office number 204, Winter Park, FL 32789, USA. Tel: þ 1 407 646 2486; Fax: þ 1 407 646 1550; E-mail: jpjohnson@rollins.edu 1 Abstract Many international business failures have been ascribed to a lack of crosscultural competence (CC) on the part of business practitioners. However, the international business literature appears to lack an adequate conceptualization and definition of the term ‘CC’, focusing instead on the knowledge, skills and attributes that appear to be its antecedents. In this conceptual study, we propose a definition of CC as it applies to international business and develop a model for understanding how CC is nurtured in individuals, linking our definition to the concept of cultural intelligence. We discuss the components of the model and suggest that there are environmental and contextual impediments...
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...International Business Environment Name: University: Course Title: Instructor: Date: Executive Summary International business environment changes in the last couple of years have had a significant impact on the sectors of the world economy more so the airline sector, with this in mind the term paper focused on the impact of changes in the international business environment on the airline industry. International business environment is viewed as the most contexts for international business and comprehending how forces in this environment impact the business operations is the difference between business failure and success. To this end, the research established various changes in the business environment that have taken place in political, economic, financial and socio-cultural circles. Political changes especially the Arab spring have had far reaching impact on the airline sector with fall in passenger numbers to these destination as well as the rise in fuel prices negatively impacting the growth of the industry, political instability in other areas as well as laws regulating the airline sector have been on the rise as countries seek to protect local airlines, the economic crisis slowed down the growth of the sector but with the recovery process on track, the airline industry is expected to grow into the foreseeable future, issues such a new taxes for example carbon tax in Europe, the unstable foreign exchange market and inflationary pressures...
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...Cultural Issues and Ethics in International Business Introduction The expansive and unstoppable process of globalization has forced employers to form their ability to trade and negotiate with the outside world. However, it is important not only they are immersed in this subject, your staff, or one who is qualified to do so, you should also have access to the most significant aspects of foreign trade, logistics, and the impact. Companies are not limited to conduct private and government operations locally, but also with other countries. Precisely what we call international business is the relationship between an organization and its external world (Maddox, 1993). This type of activity also involves foreign trade and international, which includes transactions such as exports, imports, investments, or financing that are performed worldwide. Among the success factors that can be mentioned in the international business operations are competitiveness, financial support between the parties and logistics. This aspect is very important because when the actors involved are from different countries or regions, the business success is more complicated. In analyzing the economy, we must review the dimension that transcends the borders of a country, i.e. which addresses the problems international economic purposes (Maddox, 1993). The importance of international relations in trading, politics or culture has reached a global level, a deeper meaning that one cannot speak only about...
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...Chapter 01 The Scope and Challenge of International Marketing True / False Questions 1. (p. 3) Global commerce thrives during peacetime. TRUE Difficulty: Easy Type: Knowledge 2. (p. 4) To date, the lesson for international commerce in the 21st century is "expect the unexpected." TRUE Difficulty: Easy Type: Knowledge 3. (p. 5) Today, every American business is international. TRUE Difficulty: Moderate Type: Comprehension 4. (p. 5) One event that will influence the shape of international business as the future unfolds is the rapid growth of the World Trade Organization, NAFTA, and the European Union. TRUE Difficulty: Moderate Type: Comprehension 5. (p. 5) One event that will influence the shape of international business as the future unfolds is the unprecedented acceptance of communism and socialism in Latin America. FALSE Difficulty: Moderate Type: Comprehension 6. (p. 5) A trend that will impact international business in the future is a mandate to properly manage the resources and global environment. TRUE Difficulty: Moderate Type: Comprehension 7. (p. 5) Today, most business activities are local or regional in scope. FALSE Difficulty: Moderate Type: Knowledge 8. (p. 6, Crossing Borders 1.1) What do French farmers, Chinese fishermen, and Russian hackers have in common--they can all receive subsidy payments from the U.S. government. FALSE Difficulty: Moderate Type: Knowledge 9. (p. 6) Foreign-made products remain a small...
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...UNIT -1 GLOBALIZATION AND INTERNATIONAL BUSINESS Chapter 1: Globalization and International Business Prof. Madan Survase Globalization & International Business Learning Objectives To explain the concept of globalization To elucidate factors influencing globalization To discuss global business expansion strategy for emerging market companies To explicate the concept of international business To delineate motives for international business expansion To expound the strategy for managing business in the globalization era Globalization & International Business Chapter 1: Globalization and International Business Prof. Madan Survase Globalization of Business: A Historical Perspective In the initial years of human history, there were hardly any formal barriers, such as tariffs or non-tariff restrictions, for the movement of goods or visa requirements for the people. The concept of globalization can be traced back to the phenomenon of a nation-state. Globalization & International Business Chapter 1: Globalization and International Business Prof. Madan Survase Concept of Globalization The process of integration and convergence of economic, financial, cultural and political systems across the world. Globalization & International Business Chapter 1: Globalization and International Business Prof. Madan Survase Definition of Globalization Dictionary of Trade Policy Terms, WTO: “The increasing integration of national...
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...International Journal of Business and Management; Vol. 7, No. 16; 2012 ISSN 1833-3850 E-ISSN 1833-8119 Published by Canadian Center of Science and Education Cross-Cultural Etiquette and Communication in Global Business: Toward a Strategic Framework for Managing Corporate Expansion Ephraim Okoro1 1 School of Business, Howard University, Washington, USA Correspondence: Ephraim A. Okoro, Department of Marketing, School of Business, Howard University, 2600–Sixth Street, NW, Washington, D.C. 20059, USA. Tel: 1-202-806-1545. E-mail: eaokoro@howard.edu Received: March 22, 2012 doi:10.5539/ijbm.v7n16p130 Abstract The expanding scope of business corporations in the first decade of the twenty-first century is drawing much scholarly attention, and the trend has been described as a fact of life that defies the stretch of human imagination. The concept of global economy has expanded consumer awareness, defined new standards and rules of operations, and increased the need for national and corporate interdependence. Multinational organizations are exploring opportunities around the world, demonstrating sensitivity towards cultural differences in order to gain from the proliferation and growth of international enterprise. Recent studies indicate that while some corporations compete successfully in the global marketplace, others have failed to sustain their competitive advantage because of cultural imperialism or inadequate acculturation of their managers on international assignment...
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...Unit 39 – International Business Scenario You are employed by the local Business Development Agency and have been asked to independently research international business in relation to an international case study business of your choice. From your research you are required to put together a research report document which can be used to assist businesses who are considering trading internationally. Your work should be a result of your own independent research and contain references throughout and a bibliography. Your research should follow the guidelines set and give your own supported judgement where indicated. Learning Outcomes 1. Understand the international business environment 2. Know how cultural differences affect international business 3. Know how international business is financially supported 4. Understand the strategies used by international business Task 1 – covers P1 – Hand in date 11/4/2014 P1 – Explain the international environment in which a selected organisation operates in 1. Choose a business which operates internationally, it is suggested that you use one from the following list as they make good international case studies. You may chose an alternative that is not on the list but you must get prior agreement with your tutor. Aviva Dyson Burberry M&S JCB Barclays Britvic Tesco JLR Cadbury GSK Costa Premier Foods B&Q Ikea 2. Write a 400 word background introduction on the company and...
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...front sheet Qualification | Unit number and title | BTEC Higher National Diploma – Business Management | Unit 1 – The Business Environment | Student name | Assessor name | Mohammed Arif | Mary EC Zafra | Date issued | Completion date | Submitted on | 19/11/2015 | 17/12/2015 | 17/12/2015 | | | Assignment title | BE1: Assignment 2/2 The Business in an Economic, Cultural and Global Environment. (LO3 & LO4) | ------------------------------------------------- Learning Outcome | Assessment Criteria | In this assessment you will have the opportunity to present evidence that shows you are able to: | Task no. | Evidence(Page no) | LO 3 Understand the behaviour of organisations in their market environment | 3.1 | Explain how market structures determine the pricingand output decisions of businesses | | | | 3.2 | Illustrate the way in which market forces shapeorganisational responses using a range of examples | | | | 3.3 | Judge how the business and cultural environmentsshape the behaviour of a selected organisation | | | LO4 Be able to assess the significance of the global factors that shape national business activities. | 4.1 | Discuss the significance of international trade to UK business organisations | | | | 4.2 | Analyse the impact of global factors on UK business organisations | | | | 4.3 | Evaluate the impact of policies of the European Union on UK business organisations. | | | Learner declaration | I certify that the work submitted for...
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...interdependent, and dynamic global environment. A discussion on globalization should first begin with a definition. Globalization is a process of international trade, investment among people, organisations and governments from different countries (Chen, 1999). This process has effects on the environment, culture, political systems, and economic development around the world (Deresky, 2008). Due to globalization, the international dimension of management has become a major challenge to countries, institutions and people. International management is becoming more important within the academic setting. International management is a process of developing strategies, designing and operating systems, and working with people around the world to ensure sustained competitive advantage (Sepehri, 2010, as cited in Lecture notes 1). This essay identifies the challenges of operating in different national cultures for international managers by using Hofstede’s theory. In addition, the essay explains international skills and knowledges required by managers to be successful in different countries. Cultural Value Dimensions Culture in a global economy is one of the most important factors in global economy. In international management research, Hofstede defined culture as "…the collective programming of the mind which distinguishes the members of one group or category of people from those of another" (Hofstede, 1991, as cited in Jones, 2007). Within the context of international management, culture involves...
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...Module 1 - Identifying Global Business Opportunities Module 2 - Analyzing International Competitors Module 3 - Assessing the Economic/Geographic Environment Module 4 - Assessing the Social- Cultural Environment Module 5 - Assessing the Political Legal Environment Module 6 - Selecting a Global Company Structure Module 7 - Financing Sources for Global Business Operations Module 8 - Creating a Global MIS (Management Information System) Module 9 - Identifying Human Resources for Global Business Activities Module 10 - Managing International Financial and Business Risks Module 11 - Product Target Market Planning for Foreign Markets Module 12 - Designing a Global Distribution Strategy Module 13 - Planning a Global Promotion Strategy Module 14 - Selecting an International Pricing Strategy Module 5 - Determining Organizational Financial Results Module 16 - Measuring International Business Success ...
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...DAVID PRIFYSGOL CYMRU: Y DRINDOD DEWI SANT School of Business The Global Business Environment SBUS4004 Summer June 2014 – Term 1 October 2014 – Term 2 SBUS4004 The Global Business Environment MODULE CODE: TITLE: LEVEL: CREDITS: TEACHING METHODS: SBUS4004 The Global Business Environment 4 20 Lectures Seminars Independent Study N100 16% 8% 76% JACS CODE: AIM(S) • To introduce the importance of the global business environment within which organisations operate. To enable students to identify and recommend business decisions considering the changing components of the global business environment. • LEARNING OUTCOMES By the end of this module students should be able to: • • • outline and discuss the characteristics of an organisation’s environment; identify and discuss how organisations interact with the global business environment; interpret and produce supply and demand (price) predictions based on global business environment scenarios; distinguish how different organisations compete domestically and internationally; understand and identify cultural differences between countries and the importance of the different aspects of culture in doing business in a global context. • • CONTENT • Determining the difference between needs and wants and their significance to economics and business. Three economic systems, planned, free and mixed economies and the implications of each system on business/ organisations and society. Market classifications...
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...Identifying Global Business Opportunities 1. POTENTIAL MARKETS Discuss one or more of the global business opportunities from above in terms of: (a) a specific product or service, including customer benefits; and (b) a potential market-a country that would be appropriate for this business opportunity. 2. ABSOLUTE AND COMPARATIVE ADVANTAGES Analyze for the presence of an absolute or comparative advantage that might be related to a business opportunity in the country where the item will be produced or sold. Describe how this analysis might influence the success of your proposed business idea. (For example, the availability of natural resources can make a business opportunity cost efficient.) 3. BUSINESS OPPORTUNITY ANALYSIS Compare two or more proposed business opportunities based on factors such as foreign market potential, start-up costs, and foreign business risks. (For example, a proposal to construct new highways may be appropriate for a developing economy. However, the risks in this market are probably greater than in an industrialized nation.) 4. Research the international operations of a company doing business in several countries. Obtain information related to: (1) the products sold in various regions of the world; (2) current and planned business activities in specific regions of the world-Asia, Africa, Eastern Europe, Middle East, Latin America; (3) the company's strengths and weaknesses related to global business activities; (4) future actions...
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...International Marketing 1 The Scope and Challenge of International Marketing Objectives What you should learn from Module 1 What is meant by international marketing. To understand the scope of the international marketing task To comprehend the importance of the self-reference criterion (SRC) in international marketing. To be able to identify and manage the factors influencing internationalisation of companies. To evaluate the progression of becoming an international marketer. To see how international marketing concepts influence international marketers. To appreciate the increasing importance of global awareness. 1.1 The Internationalisation of Business 1.2 International Marketing Defined 1.3 The International Marketing Task 1.4 Environmental Adjustment Needed 1.5 Self-reference Criterion: An Obstacle 1.6 Becoming International 1.7 International Marketing Orientations 1.8 Globalisation of Markets 1.9 Developing a Global Awareness 1.10 Orientation of International Marketing Summary The first section of International Marketing offers an overview of international marketing and a discussion of the global business, political and legal environments confronting the marketer. International Marketing is defined as Performance of Business activities beyond national borders. The task of international marketer is explained. Key obstacles to international marketing are not just foreign environments but also our won self reverence criteria (SRC) and ethnocentrism. This...
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