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UK - Essay Example

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Author Instructor Course Date Suitability of United Kingdom for Multinational Business 1. INTRODUCTION United Kingdom is one of the countries located in the continent of Europe. It is located to the northwestern coast of Europe. It boarders only one Sovereign state; it boarders the Republic of Ireland located to the north eastern part of the country…
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Download file to see previous pages The country is the sixth largest economy in the world with over $2,400 GDP. 2. DIMENSIONS OF DISTANCE The UK has special relationship with foreign countries such as USA and France. It is also a member of NATO, G8, G7, OECD, Commonwealth and EU. This membership enables it to develop good business and political relationship with foreign countries. However, the types of distance between UK and these countries affect these relationships a great deal. According to Ghemawat (137), the different types of distance between different countries influence global trade and multinational business strategies. The specific types of distance identified by Ghemawat which affect UK in its international trade and multinational strategies include Cultural, Administrative, Geographical and Economic distances (CAGE). In terms of cultural differences, UK may be considered to experience distance dimension in international involvements through language differences with foreign countries, different ethnicities, different religions and different social traditions and norms. The main feature that makes UK different from other countries is its British culture. For instance, the language spoken by UK citizens is British English. This differs from other languages spoken by UK’s trading partners. ...
e most important business strategies for a multinational corporation is to maintain its core business products and services while attempting to meet the needs of its customers in the foreign country. This is always hampered by language differences because the certain services are better offered and communicated using the local language of the host country than in British English. Furthermore, the social traditions, religion and ethnic communities of the UK may also not accept the products and services offered by multinational companies. Another example is that UK companies selling pork may not thrive well in countries like Russia. The second type of distance between UK and other countries is Administrative distance. In this case, multinational business strategies and international trade between UK companies and foreign companies will be affected by the absence of shared monetary and political associations, political hostility and government policies. If the multinational companies from hostile countries intend to enter the UK market, they may face political resistance and may not thrive in those markets. For instance, some Middle East countries such as Iraq are not politically friendly to the UK because of the UK’s affiliation to the US. This makes them not to get appropriate reception in the UK. However, the UK political system is welcome to most countries and is therefore appropriate destination for international business. Geographical distance also affects the international involvement of UK and other foreign countries (Ghemawat 142) For instance, if a country lacks a common border with the UK e.g. US, it becomes difficult for US companies to trade within the UK market. This is because it may take time to transport products from one country to another. This is ...Download file to see next pagesRead More
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