Main Issues Affecting International Managers

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INTRODUCTION: Enlarged competition and relaxed economic restrictions have given rise to the development of the force of globalisation, which subsequently have led to multinational companies and managers. In 2000, the global trade in exports and imports extended 25% of the world GDP (Govindrajan & Gupta 2000). The rise of globalisation speculates a number of imperative tests to business seeking international incidence, more notably, to these business’s global managers to successfully help achieve this presence. Numerous strategic facets must be measured prior to commitment at an international level, and afterwards. Continuous flexibility is essential in order to adapt to the fluctuating patterns at local, regional and international levels. This essay pursues to detect the main issues affecting international managers including, political risks, cultural issues, strategic choices and globalisation. POLITICAL RISK: Wells (1998) defined political risk as the challenges confronted by investors that end from some sort of government action, and sometimes inaction. Political risk in this context implies undesirable business consequences because of the behaviour of governments and public sector organisations (Suder 2004). The most essential political risk has been the peril of nationalisation (Brooks et al 2004). The dangerous threat of nationalisation occasionally takes slighter forms as when, in times of predicament, some governments opt to exchange rate controls. Alternative source of political risk are wars or civil unrest. Nevertheless, Jones (2001) notice that dramatic events such as wars and assassinations are rare in the international business arena. Additional political risk is characterized by corruption practices (Hill 2005).... ... middle of paper ... ...lable at: http://news.bbc.co.uk/hi/business/6279679.stm - Suder, G.S. (2004). Terrorism and the International business environment: the security – business nexus. Edward Elgar publishing. - Stiglitz, J. (2002). Globalisation and Its Discontents. London: WW Norton - Takyi – Aseudu, S. (1993). Some socio cultural factors retarding entrepreneurial activity in sub Saharan Africa. Journal of Business Venturing, 8, p. 91 -98. - Vitell, S.J., Saviour, L., Nwachuckawu, A. & Barnes, J.H. (1993). The effects of culture on ethical decision making: An application of Hofstede’s typology. Journal of Business Ethics, 12, p.753 -760. - Wells, L.T. (1998). Good and fair competition: Does the foreign direct invest face still other risks in emerging markets? Malden, MA: Blackwell. - Yip, G.S. (1998). Global strategy in a world of nations?, Sloan Management Review, Autumn, p. 29 -41.
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