As the world move towards globalization, international business increasing dramatically. By the use of new technologies and easier ways of transportation having international client and doing business overseas becoming more and more popular.
“International business occurs under many different formats, from the movement of goods from one country to another (exporting and trade); to contractual agreements giving firms in foreign nations legal permission to use products, services, and processes from other nations (franchising, licensing, subcontracting production); to companies setting up sales, manufacturing, research and development, and distribution facilities in foreign markets”.
International business facing so many challenges range from political, economical and cultural.With all challenges that international business facing it require multidisciplinary nature. In order to establish a successful business in foreign countries there is need of cultural, psychological and regional understanding. All these may not have a direct connection with the established business but it can have a strong impact on that.
As a personal experience, I remember that when my father wanted to establish a branch of his company in Dubai faced so many challenges. Challenges ranged from hiring staff and rules and regulation for importing and exporting products. Also, there is a lot going on about your bank account and how much money do you have and as a business man they always faced challenges about transferring money. Each country has its own rules and regulation and you always need to consult with an expert about them. One of the important factors can be the language, in order to contact with people you should be able to know their language.
But as the matter of fact international business is facing so many challenges, but at the same time having business overseas can profit the company when there is recession or political issue in the companies’ country of origin. Now we can see that by the recession that we are facing in USA international companies can deal much better with it because of projects that they have overseas.
International business like anything else in the world has its own pros and cons, but the good thing is that there are so many ways to deal with its challenges.
Information retrieved from http://www.uk.sagepub.com/upm-data/26072_1.pdf
Image retrieved from http://www.diytrade.com/china/manufacturer/1275988/main/Lozhubear_International_Co_Ltd.html