International business management Assignment Example | Topics and Well Written Essays - 3000 words

International business management - Assignment Example 3- Socio-Cultural Factors: Majority of the organizations avoid introducing their products in the international market due to socio-cultural factors. Organizations fear that introducing any product or operating their business activities in a different culture with unusual traditions may risk their reputation and this could have an adverse affect on their potential growth. Therefore, it is important to know that it is the sound understanding of the social and cultural factors that distinguish the business operations of an international and domestic firm. Domestic firms possess better understanding of the social and cultural factors unlike an international firm which struggles hard to analyze and understand them. An international business may lose the business opportunity in the host country, if it fails to understand the local environment, behavior, attitudes and various other cultural factors. 4- Technological Factors: Technological factors play an important role in creating issues fo r an international firm to start their business activities in such a country that has little or no proper technological and communication infrastructure. This would increase the cost of producing or starting a venture in the host country. Differences between Domestic and International Strategy: Factors Domestic Conditions Global Conditions Culture Homogeneous Heterogeneous Currency Standard and uniform Different currencies and exchange rates Economy Stable and consistent Uncertain economical conditions Government Stable Unstable and uncertain Labor Easy availability of skilled workers Hard to find the skilled labors. Language Single Language Different languages with different dialects Marketing Many media, broad exposure and few restrictions. Fewer media, minimum... The paper tells that globalization has helped the economies to improve their trade, investment and how these economies can enhance their international businesses. There are different issues that a firm takes into an account before entering the global market. It is highly important for an organization to carefully analyze all the key issues and factors that can affect on the international operations before entering into global market. These key international issues are: economic forces; political and legal factors; socio-cultural factors and technological factors. Corporate social responsibility refers to the set of obligations on a firm for its approach towards social contribution in the society it operates. As we know that, multinational corporations operate in a culturally and socially diversified structure therefore, they are under more challenges to fulfill their share of corporate social responsibility in the country they are operating as compare to domestic/local firms. Multina tional corporations operate in the host country with the intention of benefiting the host country by bringing employment opportunities to them, giving boost to their economy and by introducing the latest technology in the country. However, there are certain factors that MNCs should consider while operating in any other country such as taking care of the corporate social responsibility which is an obligation to be fulfilled on all the MNCs. This is mainly due to the fact that these international businesses face more challenges as compare to domestic firms and local businesses.