International Business Management - Essay Example

Other factors that influence decision making in international business include; differences in legal systems, the existence of trade barriers between nation states and the differences in the distribution of human and natural resources between different countries. Apart from the above factors that limit the free operations and policy making decisions of international business manager, the principles of management remain fairly the same. Factors affecting international business can be classified as cultural, political and economic.

Political events are of great concern because they influence; the cost of doing business, the social and economic stability of countries and accessibility to human and non-human resources. Politics also have a safety and security implications and transfer of payments (Whiting 2010). The British monitor manufacturing company under the management of Tony considered factors such as cost but failed majorly in considering the economic stability of Latin America which hugely cost them after the inflation in Latin America.

International business may be limited by national economies which are relatively self contained entities isolated from each other by barriers to cross border trade and investment. Other limitations include distance, time zones, differences in national government trade regulations and cultural differences. However, the world is moving towards diminishing trade and investment barriers. This is due to advances in transportation and telecommunication technology. Tony’s company had no challenges in transportation of their goods which enabled easy exports to farther countries.

The British company outsourced cheap monitors from Asia which indirectly exploited the cheap labor in Asia. This globalization led to loss of jobs and incomes in Britain evident in the British monitor manufacturing company which reduced its employees in the manufacturing sector. Unstable