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.
Table of Contents
- Introduction
- Management Basic Processes and Concepts
- Importing and Exporting, Communications
- Legal, Social, Political, Economic and Management aspects of Trading internationally, focusing on behavioral perspective in organizations
- Evaluation of Benefits of International Business
- Possible Improvements on the Market World
Objectives and Key Themes
This paper aims to evaluate the management issues, benefits, and limitations of international business. It explores the trading environment, including importing and exporting, and examines the legal, economic, political, and management aspects of trading internationally. The paper also discusses how international business can improve the market world.
- The Importance of Management Systems in International Business
- The Role of Communication in International Business
- The Legal, Social, Political, and Economic Environment of International Business
- Benefits and Limitations of International Business
- Improving the Market World through International Business
Chapter Summaries
The introduction discusses the motivations for entering a new environment, highlighting the importance of strong management systems and effective communication in international business. It emphasizes the growing importance of international operations and the increasing global trade environment. The chapter also presents statistics on the growth of world exports, highlighting the importance of understanding trading rules and regulations.
The second chapter focuses on management basic processes and concepts, outlining key functions such as development, marketing and sales, production, distribution, and administration. The chapter also examines the concept of the balanced scorecard, a tool for tracking important organizational data and balancing internal and external factors.
Keywords
The main keywords and focus topics of the text are: international business, management, importing, exporting, trading environment, legal aspects, economic aspects, political aspects, communication, benefits, limitations, market world, global trade, government, culture, development, marketing, sales, production, distribution, administration, balanced scorecard, barriers to entry, competitive advantage.
- Quote paper
- Lillian Matiza (Author), 2012, Evaluation of management issues, benefits and limitations of international business, Munich, GRIN Verlag, https://www.grin.com/document/207903
