Business Cultural Challenges in Libya - Dissertation Example

As foreign businesses assess the prospect of entering this potentially productive market, endurance, a dependable associate and a profound understanding of the political as well as business setting are significant assets that should come with any future venture.

Background

As Libya carries on to recover from the Qadhafi era, businesses will certainly come across a number of similar challenges many Libyans have coped with for years. From a functioning point of view, these aspects repeatedly disrupt the best of project management attempts and exponentially raise the level of endurance essential to function successfully (Bayoud et al, 2012, p. 145). Nonetheless, in a culture focused on associations, the value of a dependable associate with the necessary understanding of the Libyan market cannot be devalued. Looking for an associate with the cultural understanding and continuing political as well as business dealings required to get things done can usually indicate the difference between achievement and collapse.

While this business setting will certainly modify during the coming months as the lately nominated General National Congress (GNC) carries on to deal with its parliamentary priorities, companies must be responsive towards existing regulatory requirements.

Businesses should as well be aware of a decision linked with “new customs tariffs issued by the GNC’s predecessor, the National Transitional Council” (Joffé, 2011, p. 240). The general charge of customs duties shall be five percent, with the exception of some particular products that charged higher duty rates starting from 10 percent up to 30 percent. There are some offered within this decision however, up till now, a thorough customs tariff chart has not yet been published.

While many may consider the inherent challenges of the existing Libyan market as daunting, there are still some companies from around the globe who are recognizing the bright prospects at hand once the problems are being taken care of. Following a year of inconsistency and 42 years of dictatorship, Libyans are dedicated to helping the country to apprehend its potential and identify the part for foreign business during the process (Adetunji, 2011, p. 209). With the proper leadership, global businesses can do well in Libya and deliver products and services that the financial system requires as it goes to the next level. For companies who can afford to be enduring, who can operate with a dependable local associate, and stay at the forefront of political and business developments, the prospective incentives may be well worth the threats.

Problem Statement

Libya has never been a state with an exceptional situation and with all information about hostility, turmoil, and chaos from the collapse of Qadhafi; it is unexpected that the situation of this country is going towards betterment.