The International Business Environment: The Complications Of Globalization And Internationalization Business

1900 Words8 Pages
1.0 Introduction
The international business environment is clarified to be the critical setting for relevant researches of the transnational commerce, and it is differentiated from other management researches (Ferreira, Li, and Guisinger, 2007). Executives are further required to minimize the possibilities of risks due to the variable dimensions of transnational executions, those threats therefore are abridged into four aspects, namely legislation idiosyncrasies, cultural incompatibility, political threats as well as monetary risks (Mascarenhas, 1982; Ebrahimi, 2000; Guisinger, 2001).

In this article, the environment of international business will be testified, referring to the correlation and differentiation of globalization and internationalization
…show more content…
In actual fact, these two represent respective implications despite they may be replicated assuming in a certain context (Daly, 1999).

Globalization is an ultimate product generated under a certain amount of conditions on the other hand. The precursor is diverse economies must collaborate altogether aiming at shaping one tightly coherent global-scale economy through the methods of complimentary merchandise exchange, free monetary relocation and simplicity of immigration. In response to Herman’s interpretation, globalization is a successful method to break down national limits for monetary purposes (Herman E. Daley, 1999). The underneath bar chart contains data collected by WTO (2014), which signifies the percentages of the WTO members and their proportions in the global scale during
…show more content…
(McCort and Malhotra, 1993) other innate properties. The authors in the scene of management research Hofstede (1984, 1991 and 2001) came out with a model of cultural framework such as Masculinity vs. Feminity, Individualism vs. Collectivism, Short vs. Long power distance and so on.
Managers who are taking care of international business must be aware of the opportunities and threats in a different setting consistent with another unique culture. Likewise, it is a must for those managers to comprehend the nature of the host countries’ culture, and take actions to overcome the barriers in related to the idiom “Think global and Act local” (
For instance, advertising campaign “Share a coke” of Coca Cola the giant in the beverage industry had been criticized in Israel over not printing Arabic names; Tesco’s oversea expansion failure in Japan in 2012 over meeting the Japanese residents’ preference; Ebay’s exit in China because it does not allow buyers and sellers to communicate via private chats to build up “Guanxi” (relationship) (MBAskool,

More about The International Business Environment: The Complications Of Globalization And Internationalization Business

Open Document