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The Difficulties Faced by Firms within the International Market - Term Paper Example

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The author of the "The Difficulties Faced by Firms within the International Market" paper discusses the statement that the management issues faced by multinationals in host nations are merely a magnified version of issues faced by these enterprises in their home countries. …
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The Difficulties Faced by Firms within the International Market
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Download file to see previous pages Regarding this issue, in a report published by the World Economic Outlook (2002, 82) it is noticed that ‘trends and cross-country differences in corporate indicators reflect a variety of country-specific institutional and macroeconomic factors, as well as industrial specialization and firm size, with the following key policy implications’. In other words, the problems faced by multinational corporations globally usually reflect the weakness of these firms to respond to the current needs of the particular market and especially to the customers’ preferences as they are developed under the influence of specific social, political and cultural principles. The difficulties faced by firms within the international market have been extensively examined by Douglas et al. (1989, 437) who suggested that ‘recent years have witnessed a growing intensity of competition in virtually all areas of business, whether at home or abroad, in markets upstream for raw materials, components, supplies, capital, and technology as well as in markets downstream for consumer goods and services’. In other words, the expansion of operational activities is regarded as a necessary part of the firm’s strategy. However, because the operational conditions for firms belonging in the international market are quite challenging it should be important for firms to appropriately develop their communication with their stakeholders in order to retain their position in the particular industry for the long term.

One of the most characteristic problems for firms operating in the international market is the understanding of the culture of the host nation. For this reason, the introduction and the application of appropriate measures are considered to be significant towards the achievement of the target set by the firm’s strategic management team (most commonly the development of the firm’s activities is targeted without to be followed by the appropriate documentation in order to verify the invoices.    ...Download file to see next pagesRead More
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