Busines Comparative Issues in International Management

Question: Discuss about the Busines Comparative Issues in International Management. Answer: Introducton: International management is centered on the need for businesses and countries to thrive. To achieve this goal, many countries and businesses have come up with better ways to increase income and reduce cost (Ghemawat, 2017). The need to achieve the competitive advantage and remain productive in the global markets has resulted in new dimensions in international management. International management has been changing over time with respect to globalization. There is continued supraterritorality, modernization, and liberalization in an attempt to create connection between countries in various fronts (Li et al., 2017). It is important to note that countries and business entities strive to lower production costs and increase profit margins. Currently, there is offshore business operations that are deemed to lower costs and an attractive proposition (Ghemawat, 2017). It is also vital to note that offshoring presents several risks that management should deal with and leverage the opportunities in such operations. Today, many multinational companies purpose to hire global managers who are capable of operating across national lines. It is strongly believed that global managers ensure that a company gains smooth entry into a host country. Ideally, working in a foreign culture presents several challenges to managers. Additionally, the laws and regulations in a foreign country is a point of concern to the host nation. Furthermore, evidence has shown that offshore operations exacerbates existing management concerns. These concerns may include quality control and security issues (Reeves, Harnoss, 2017). Many organizations are carrying out outsourcing in an attempt to reduce the costs concerned with infrastructure, selection of employees, training and reducing the hiring of employees. Moreover, development of an effective repatriation strategy for multinational companies is viewed as an imperative tool that can be used to maximize human resource management (Yeniyurt Carnovale, 2017). Repatriates are a vital area of human resource management that has been used in spurring economic growth and development. Management teams are working hard towards the realization of sustainable innovation. There is reorganization is key to performance improvement and development synergy. Emphasis on quality is used to pull workforce together (Knight, R. (2017). However, globalization presents several drawbacks. Although there is proliferation of technological methods in communication such as, encrypted e-mails and satellite videoconferencing there are several management challenges (Yeniyurt Carnovale, 2017). It is imperative to point out that cultural differences that include basic shared assumptions, norms, values and beliefs affect management at the global level. Cultural differences often lead to culture shock among expatriates. International management requires the ability to think and act both locally and globally (Knight, R. (2017). It is generally believed that global mindset is a common characteristic of a good global manager. In this respect, global managers are expected to understand the conceptualization of complex geopolitical forces and their effect on international management. Generally, there is belief that the political environment in a nation is a critical factor in coming up with strategies and regulations. The political environment therefore, influences performance of industries and firms (Adler Graham, 2017). In addition, governance and politics play a crucial role in the management of firms and their possible outcomes. For instance, more than thirty years ago, China barred foreign investment. In essence, China had isolated herself from international trade and obligations that were being undertaken by other countries (Li et al., 2017). Later, the country opened its doors for foreign investments as a result of changes in government interventions and regulations. The regulatory and government intervention issues touch on policies that businesses are expected to adhere to (Gupta, 2017). Currently, there are stricter regulations and rules that are geared towards streamlining business operations. In some countries, a friendly business environment has bee n created that include tax reduction among others. Change in policies affects international management in view of decision making and it requires that managers to come up with means of countering such policies in the best way possible (Dominguez Mayrhofer, 2017). Additionally, many countries have come up with rules and regulations which impacts foreign firms such as expropriation, confiscation, and domestication. For instance, in Russia, the government threatened to confiscate assets owned by European companies and the United States. Several countries have attempted to domesticate foreign investments so as to prioritize production and local resources. Corruption poses a great challenge to international management (Adler Graham, 2017). The vice is endemic to various countries and affects different policies. There are instances where local politicians have to be bribed in order to return a favor (Knight, 2017). Corruption contributes to loss of resources, inefficiency, weakened development and rise in crime rate. Moreover, political instability has had tremendous impact on international management. In many countries, there have been civil wars, revolutions, and coups that have threatened businesses (Li et al., 2017). References Adler, N. J., Graham, J. L. (2017). Cross-cultural Interaction: The International Comparison Fallacy? In Language in International Business (pp. 33-58). Springer International Publishing. Dominguez, N., Mayrhofer, U. (2017). Internationalization stages of traditional SMEs: Increasing, decreasing and re-increasing commitment to foreign markets. International Business Review. Knight, R. (2017). We Dont Need Political Solutions for Global Trade We Need Practical Ones; hbr.org, Harvard business review. Retrieved 11 April 2017, from https://hbr.org/2017/03/we-dont-need-political-solutions-for-global-trade-we-need-practical-ones Li, L., Liu, X., Yuan, D., Yu, M. (2017). Does outward FDI generate higher productivity for emerging economy MNEs? Micro-level evidence from Chinese manufacturing firms. International Business Review. Ghemawat, P. (2017). Even in a Digital World, Globalization Is Not Inevitable. Harvard Business Review. Retrieved 11 April 2017, from https://hbr.org/2017/02/even-in-a-digital-world-globalization-is-not-inevitable Gupta, V. (2017). The Promise of Blockchain Is a World Without Middlemen. Harvard Business Review. Retrieved 11 April 2017, from https://hbr.org/2017/03/the-promise-of-blockchain-is-a-world-without-middlemen Reeves, M. Johann Harnoss, j (2017). An Agenda for the Future of Global Business. (2017). Harvard Business Review. Retrieved 11 April 2017, from https://hbr.org/2017/02/an-agenda-for-the-future-of-global-business Yeniyurt, S., Carnovale, S. (2017). Global supply network embeddedness and power: An analysis of international joint venture formations. International Business Review, 26(2), 203-213.