Evaluation of management issues, benefits and limitations of international business - Matiza, Lillian
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Research Paper (postgraduate) from the year 2012 in the subject Business economics - Business Management, Corporate Governance, grade: A, ( Atlantic International University ) (Atlantic International University), course: Business and Economics, language: English, abstract: The motion for entering a new environment is mainly because that environment lacks good competition, or competition is weak or does not exist at all. For a business to succeed internationally it begins with its management systems it puts in place. The management has to have an ability to behave accordingly and be able to…mehr

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Research Paper (postgraduate) from the year 2012 in the subject Business economics - Business Management, Corporate Governance, grade: A, ( Atlantic International University ) (Atlantic International University), course: Business and Economics, language: English, abstract: The motion for entering a new environment is mainly because that environment lacks good competition, or competition is weak or does not exist at all. For a business to succeed internationally it begins with its management systems it puts in place. The management has to have an ability to behave accordingly and be able to follow the set rules. International operations have grown and are changing slowly such that the basic management process and concepts still need to be followed although very closely in case of any new changes. Communication is very important when doing business internationally as the channels are also changing with technology systems. International operations are also growing due to political environment changes in the international environment. World exports are increasing according to Devinney, Timothy M., Pedersen, Torben, Tibanyi, Laslo (2010) from $60 billion in 1950 to $16, 070 in 2008. Agreements on trading conditions have been put in place to enable such growth. For any country to grow beyond its borders it means more competition and new opportunities. A study on the importing and exporting rules and regulations is very important as this helps evaluate the strength of business in the chosen environment. Also understanding the legal, social, economic and political status of the chosen environment is very important as the behavioral patterns of these can easily be positive or negative to business. Evaluating how the organization will benefit by investing internationally and how they can improve the market locally and globally. These facts are necessary as they help create opportunities for organizations and improve efficiency of service in the products and services. There are many benefits and limitations that come with internationalizing businesses and managing it. For example there are issues of culture and customer behavior which may differ from the known culture by the organization. This could make it difficult to operate as culture and behavior need to be studied first before investment. Resource allocation can be done by the government who in most cases do this to control the economy. Although it is important that the government helps in the control of the resource allocation and manage economic policies with recognition of how delicate the financials are from an international point of view.
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