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B300 Assignment 6 - Essay Example

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Organizations that conduct business operations across national borders are called international firms or multinational corporations. Globalization has affected a wide spectrum of economic and social life of a nation. It has transformed trading pattern, finance, technological innovation, means and modes of communication, cultural pattern and patterns of governance, rate of employment and living standards…
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B300 Assignment 6

Download file to see previous pages... As organizations enter into different regions for their business needs they have to follow policies of the region. Regional peculiarities cannot be ignored in favor of centralized policy of the government. The phrase 'think globally and act locally' points to the same idea that organizations have to adapt their business policies according to the region where they have decided to go into operation.
Middle East traditionally includes countries or regions in Southwest Asia and parts of North Africa. Persian Gulf is considered as the main centre the area around which is generally referred as Middle East. Bahrain, Egypt, Iran, Iraq, Israel, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia, Syria, Turkey, the United Arab Emirates, Yemen, and Palestinian Territories are collectively known as Middle East. Multiculturalism is one important aspect of the emerging Middle East and Dubai in particular. For example, all kind of eateries and restaurants Italian, Chinese etc. can be found. Indians, Filipinos, Pakistanis, People from Arab countries and people from Western countries comprise the workforce in Dubai whether it is white collar or blue collar job. The new cultural wave of tolerance allows foreigners to spend wee hours of the night in a pub while at the same time call for five times prayers also fill the air of Dubai. Apart from Dubai, Middle East destinations like Egypt, Jordan, Israel, Morocco and Tunisia have always been known for tourist attractions. Middle East has emerged as one the fastest developing economies. Their move towards success would not have been possible if the states had not joined the global business environment and participated in economic activities. The fabric of the society is also changing as these countries are evolving in different areas of economy, culture, science and technology. Yet there are many cultural differences and nuances that managers must know when dealing internationally in this region. The region can be an attractive business venture considering the market available.

Regional Factors

Following important factors may need management consideration for conducting business in a particular region:

Managing Politics: Political systems as well as government supervisions and regulations change when companies choose to operate in a certain region. Sometimes government officials and the general public and political activists view foreign companies as outsiders and are suspicious of their impact on economy as well as politics. This may be specifically true in certain Muslim Middle Eastern countries where mostly democracy is not in place and rules may be bent to please the government of the time. Companies have to be ware of government takeovers of property and acts of violence directed against the firm. The examples of such acts can be seen in Anti-American protests on famous American businesses. Since, such acts are not uncommon in Arab and Muslim world; companies must formulate special plans and programs against unexpected losses. Political instability, at times civil disorders and frequent changes of government are some of the common political phenomenon in the region. Political instab ...Download file to see next pagesRead More
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