Global Economics Issues assignment help

Global Economics Issues assignment help

After the globalization, there are many organizations that moved from local or domestic marketplace to global

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market in order to expand their business as well as to ensure growth of business. But most of those organizations faced several issues and challenges related to workforce, culture, environment, ethical considerations and business regulations during business expansion into foreign markets (Hisrich, 2009). In this paper business globalization case study assignment help, there will be a discussion of environmental challenges and cultural factors that are associated with moving of an organization from local to global market. The important ethical factors will be also discussed that a firm must consider, when working with workforce in foreign country.

Environmental Challenges There are several environmental challenges that an organization can face when expanding its business from domestic market to foreign markets. Socio-cultural, political, legal, technological, economics and ethical issues are some main examples that can create environmental challenges in front of all those firms, which are transitioning to a global company (Gutterman & Brown, 2011). The entrance in the global market is similar to starting a new business because both require market research and planning in order to ensure success. All these environmental factors can create challenges for an organization when expanding its business in foreign markets due to differences in culture, business legislations, political environment etc. (Lamb, Hair & McDaniel, 2011). The socio-cultural is an important environment factor that can affect foreign expansion of a firm in the case of differences in cultural values and beliefs as well as religion and language.

The socio-cultural and political-legal environment of a country is different from other countries that create challenges when a local firm transits into a global company (Doole & Lowe, 2008). There are several examples of global business failure in which national politics, technological differences, economic barriers, societal attitudes, political uncertainties and government policies and regulations are associated as the reasons of failure (Neelankavil, 2007). Along with this business assignment help experts says that, differences in taxations, working culture, customs and duties, language and environmental standards can be also associated with business expansion into foreign markets. It is because different working culture and language can create problems in front of management in order to effectively communicate and manage employees in a foreign nation (Lukac, 2008). For examples, if a European firm plans to enter in Asian markets or in Arab nations then it can face several environmental challenges due to differences in culture, political and legal environment, customs, language etc. At the same time, the political climate of target market is also an important factor that can affect success of global business expansion of any firm in the case of political instability and change in national policies. It is because these factors play crucial role in the success or failure of business expansion into foreign markets (Doole & Lowe, 2008). In order to successfully expand business into global economy, an organization should need to consider environmental factors like socio-cultural, political-legal, technological and economic environment of target markets in order to avoid environmental problems or challenges after entering into foreign markets.

Cultural Factor Consideration in Business Expansion Culture is an important factor for the organizations that needs to be considered before entering in any foreign market. It is because cultural difference is a potential cause of business expansion failure in the global marketplace. In order to ensure success, there is a need that the organization should consider all cultural factors, while planning to expand its business into foreign markets (Michalos & Poff, 2012). For example, US based automobile company plans to enter in China through foreign direct investment in order to expand its business in Asian markets. There is vast difference between culture of the US and China, so the firm should conduct a detail market research of Chinese cultures to avoid any type of cultural obstacle or barrier in future. With the help of this, the firm can know or learn about custom, belief, gift-giving customs, language, business culture, management attitudes, dietary practices and social structure of China in order to ensure success of business expansion (Hill, 2011). Along with this, by examining business styles, consumer habits, working culture, social relationship, and employment regulations and power distance in Chinese cultures, the cultural aspect can be considered effectively by the US based firm, when expanding its business in China (Boontanapibul, 2010).

Ethical Considerations in Global Human Resource Management There are many ethical factors that an organization must consider in working with foreign employees after business expansion in the global market to avoid ethical issues. The fair employment practices as well as respect of customs, values and belief of employees are some of the important ethical considerations that an organization must take into account when handling workforce in a foreign market (Carroll & Buchholtz, 2008). Along with this, the avoidance of discrimination and moral harassment at the workplace on the basis of religion, color, language, customs, social class, nationality and disability of employees must be also considered by a firm in its global human resource management practices (Bohlander & Snell, 2007).

Other Business Challenges Along with environmental and ethical challenges, there are also some other business challenges that an organization must take into consideration, when entering in the global market. Some of considerable business challenges are as follow:

  • Foreign exchange management and currency risk due to fluctuation in exchange rates (Blazey, 2009).
  • Selection of appropriate operating structure.
  • Financing of higher expansion cost.
  • Global human resources considerations (Doole & Lowe, 2008).
  • Local tax and regulatory environment (Lamb, Hair & McDaniel, 2011).
  • Finding of cross-border customers.
  • Possible resistance from local social groups in case of land acquisition for establishing plant (Blazey, 2009).
  • Condition of basic infrastructure including electricity, transport, communication etc.
  • Climate, weather and geographic condition of target country in order to avoid business loss (Hisrich, 2009).
  • Market share of existing companies.

All these are important factors that an organization must consider when expanding its business into the global marketplace in order to avoid business challenges or difficulties in future. Conclusion From the above discussion bu our assignment help experts concluded that an organization faces number of challenges when expanding into foreign markets. The differences in culture, technology, working style, legal structure, human resource practices, economic condition and business culture and methods are some of the main challenges or issues in the global economy.

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