International Business and Its Influence on the Non-economic Scope - Case Study Example

International Business At the same time as globalization is spreading, it has been d that the rise of multinational corporations for the past years is unparalleled. Just by looking at the companies from the United Sates, their investments abroad have already amounted to trillions of dollars. As a response to the rising number as well as scope of multinational companies, numerous studies have already been conducted pertinent to the cross-cultural and national differences of the multinational organizations. Aside from this, the organization’s role and well as the values present in multinational companies have also been observed. International business, provided with its nature is a principal determinant of international trade. One of the consequences on the growing achievement of international business ventures could be attributed to globalization. Trade assists in the prevention of conflict. International business fundamentally is concerned with trade, and provided that people trade, they essentially are in contact with each another. As an outcome, there is less separation that the countries are able to do. Provided that countries start to interact by means of trade, they are less expected to clash. This is also connected to the theory that democratic states are less probable to result to war with one another since they are interrelated and reliant on each others victory. There are several factors which affect the nature of international business and the companies that are involved in it. Firstly, there are challenges to the manner in which people belonging to these organizations balance their work and their personal life. Essentially, organizations should be able to work out resolutions to help boost their companies and to address this continuing challenges. However it would do well to discuss certain influences that present these challenges to international business. International Business 2 Global Influence There are several factors which affect the nature of the organizations involved in International Business. Some of these are culture and tradition, the role played by key stakeholders, available resources in the community, public policies, as well as the demographics. Cultural influence Culture together with tradition affects the manner in which organizations as well as its personnel interact with each other. Culture and tradition have a tendency to affect the goal setting activity, work activity as well as feedback gathering and receiving of the organization. These two factors also have a propensity to affect the kind of allowances and rewards given, work-life interface and even the manner in which the employees are satisfied with their work and the organization. It has been noted by research that cultures have varying dimensions and difference for different countries. There are several cultural dimensions noted to be present as pertinent to international business. Some of these dimensions are individualism, power distance, and long term orientation among others. It has been fairly established that cultures affect the manner in which businesses operate in the international arena. There are instances where the goals and thoughts of the organization of the multinational company is heavily leaning towards its cultural influence depending on the country. International Business 3 Role of Key stakeholders The role taken upon by the stakeholders (for example organized labor as well as the government) could serve as an essential determinant in employee’s work balance. It has been noted that outside groups have also the tendency to affect work-life balance. There are instances where business have to vary their manner of operation to be able to match the demands of the government and to veer away from other kinds of conflict. Public Policies The role played by stakeholders is closely linked with another essential country-specific difference when it comes to international business and that is policies. It has been put forward that public policies are key factors in the manner in which nations act upon primary social, economic, environmental as well as political concerns. This form of legalities could be considered as one of the most essential driving forces which provide the groundwork or guidelines for organizations. Employment policies in countries overrule the working conditions, the wages as well as the working hours implemented in the organization or company. A person working under a certain company in a particular country could have a different work load, shift and compensation for another person working in another country. Public policies across different nations also consent different levels of work-life benefits that employers could present their subordinates. International Business 4 Normally, the benefits that are common for every company are the paternity and maternity leaves, however, although these benefits are referred to in the same manner, their terms might vary greatly depending on the area or region. Community resources The community resources accessible to the general populace provide a representation of the restrictions or enhancements that could affect the work-life program in each company. Different standards pertinent to the country’s resources differ from one country to another. Public systems and basic human services could differ from one country to another thus the conditions of people in multinational companies could be different from one country to another. Demographics The profile of the population present in a particular region could greatly influence the kinds of work-life policies as well as practices that are most essential and needed in the organization for that particular location. This particular factor proves to be essential in identifying the kind of approach that the management of the organization should take on regarding their employees for a particular region. International Business 5 Expanding to Canada Provided with the increasing prevalence of multinational corporations, it is important to take into considerations the key noted that these companies have demonstrated when it comes to expanding the same kind of corporation. As a CEO, it is important that one understands the extent of the influence of country difference to success of their organization’s or company’s program for a particular region. It should always be taken note of that multinational companies are faced with a unique challenge of exerting efforts into balancing the manner to generate and put into practice organization-wide policies while still taking into consideration the particular country’s legal, demographic as well as social differences. For instance, in the case of expanding or putting up the same business in a country like Canada, one must take note that to be able to deal with variation of national culture, multinational companies should be able to enforce global work-life approaches and methods which could institute the shared guidelines at the same allowing for the local differences. For instance, a company may possess a common work-life viewpoint or even a set of guidelines; however that company applies each guideline or philosophy depending on the local needs. When it comes to the competitiveness of such company, as a CEO the following factors to be mentioned should be taken into account. Corporate competitiveness is reliant on the corporation inner strengths as well as weaknesses and the threats and opportunities it is faced with in its direct microenvironment as well as the opportunities and threats that are present in the macro environment. On another context, the competitive advantage of a corporation is reliant on its calculated preparation and its efficient execution. International Business 6 That is, the corporation business model should be able to build up suitable and efficient strategies examining its competitive forces, from novel entrants, replacements, supplier negotiating power, power of competition of existing corporations in a particular commerce, consumer bargaining power as well as being able to determine the forceful character of market in the present-day international market environment. It should also take in to deliberation the position of government and ruling and the ecological and societal influence of its operations predominantly if the corporation is working on a local or international level. References: Daniels, J.D. Radebaugh, L. H and Sullivan, D. P. “International Business (12th edition).” Prentice Hall;, 2008. Read More