Country Differences In Global Business:

In a globalization era, doing business in one country is different than doing business in another
country. There are so many cultural differences the norms, value, etiquettes and time
management these all are the difficulties a country must face. When a country start business,
they must have to research the environment, open the door for new culture adoption.
Expanding your business to another country can help you open new markets and even
develop country-specific products. If international business were easy, however, every small
business would be opening international offices. When you do business overseas, you'll need to
consider the cultural mandates of each country in which you do business, and you will also need
to ensure you obey both local and international laws.
It is important for every business organization to interact and transact with its
environment because the business environment has direct relationship with the organization.
The success or failure of an organization is primarily established by the effectiveness of its
interaction with its environment. Kotler and Armstrong (2004) explain that different
restrictions are imposed on all organizations by the environment. The enterprise has little
influence on the environment and therefore, it is important for the company to identify with the
environment of its operation and devise its policies in relation to the forces in that environment.
The area of international business is thus very wide and so the managers must have a very
extensive knowledge on all the disciplines mentioned. Moreover, the issue of cultural
differences is present in each of those areas. Nowadays, enterprises seeking to be successful
and win competitive advantage on the global market also, if indeed not most crucially, must
consider this aspect.
In this context two concepts appear significant: international competences and
communication (Budzanowska-Drzewiecka et al. 2016: 28-29). The cross-cultural
competences could be a set of three components linked to each other (Spitzberg, Changnon
2009: 7-8): ability to understand members of other cultures, ability to work with others, ability
to stay in the world of intensive cross cultural contact.
 Companies choose to invest in foreign markets for several reasons, often the same reasons
for expanding their operations within their home country. The economist John Dunning has
identified four primary reasons for corporate foreign investments (Global Capitalism, FDI and
Competitiveness, 2002):
Market seeking: Firms may go overseas to find new buyers for their goods and services.
The top executives or owners of a company may realize that their product is unique or superior
to the competition in foreign markets and seek to take advantage of this opportunity. Another
motivation for market-seeking occurs when producers have saturated sales in their home
market, or when they believe investments overseas will bring higher returns than additional
investments at home. This is often the case with high technology goods. As one analyst noted,
“The minimum size of market needed to support technological development in certain
industries is now larger than the largest national market” (Sutherland 1998).
Resource seeking: Put simply, a company may find it cheaper to produce its product in a
foreign subsidiary- for selling it either at home or in foreign markets. The foreign facility may
be able to obtain superior or less costly access to the inputs of production (land, labor, capital,
and natural resources) than at home.
Strategic asset seeking: Firms may seek to invest in other companies abroad to help build
strategic assets, such as distribution networks or new technology. This may involve the
establishment of partnerships with other existing foreign firms that specialize in certain aspects
of production.
Efficiency seeking: Multinational companies may also seek to reorganize their overseas
holdings in response to broader economic changes. For example, the creation of a new free
trade agreement among a group of countries may suddenly make a facility located in one of
those countries more competitive, because of access for the facility to lower tariff rates within
the group. Fluctuations in exchange rates may also change the profit calculations of a firm,
leading the firm to shift the allocation of its resources.
When doing business in another country there are so many difference a home country and host
country must face. The mode of business in every country is different like some countries are
financial and economically strong they like exporting and some are financial weak they mostly
choose import. To expand business internationally company must have to understand the
buying behavior of consumer because the profit of the company is totally depending upon the
buying habits of customer and company must generate the profit from them. So, company must
have to understand that where they are going to expand the business choose the price rationally,
which is more favorable for both customer and consumer.
When doing business in another country there are so many thing that to understand as
following:

Establish the clear communication:

If you want to establish your business in another company, you are familiar their language or
you must hire the local person who on your behalf talk for business dealings. Time difference
can make communication difficult so make a regular time conference arrangement which is
most suitable everywhere. Clear communication is a key to expand the business because when
everyone knew about the benefit of expanding business, they work for the establishment of
business

Know the Culture:

“Halt gave me an opportunity to open my mind towards the world. It helped me gain
perspective towards people from different countries such that I can go to any country and start
working without any culture shock.” –Mayur Chimurkar, MBA Class of 2014.
Cultures vary widely from country to country, and what might seem polite in the United States
can be rude and unprofessional in another location. In some countries, for example, you'll be
expected to dress very formally and be highly direct. In others, however, small talk, getting to
know your client and frequent informal business meetings are the norm. Read up on the culture
in which you're planning to do business, and learn some basics of the language, local religion
and business traditions. It's wise to visit the country a few times before opening shop so you can
decide if this is a place in which you can comfortably do business.

Study the Market:

County differences and culture difference can represent the buying behavior of customer
purchasing. So, before you invest money to another country you must have to understand that
your product has the same value there as in your country. Because some time one thing which
have high value and customer demand but did not prefer able to another country. So, research if
there is any need to change or develop the product according to requirement of customer.

Choose Good People:

Where you are start, your business chooses the people from that country who knew about the
culture, language, climate of that country because they know everything and they help you to
develop your business fast. Good employee’s help to grow the business and chance of
miscommunication are low.

Get Legal Help:

International law is highly complex, and laws about trade, taxes, currency conversion and
contracts vary from locale to locale. Hire an attorney who specializes in international business,
and ensure that you're following all the necessary regulations for imports and exports in the
other countries. You may also need help navigating local filing and paperwork requirements, so
seek out attorneys who specialize in business law in each country in which you're doing
business.

Scope of International Business Activities:

The study of international business focus on the problems and opportunities that emerge
because a firm is operating in more than one country. In a very real sense, international business
involves the broadest and most generalized study of the field of business, adapted to a unique
across the border environment. Essentially, management is answering two questions: to whom
are we going to sell what, and from where and how will we supply that market? We then have a
series of input strategies-labor, management, ownership, and financial.
 Special Environment in International Business:
What make international business strategy different from the domestic are the differences in the
marketing environment. The important special environment in international marketing is given
below:
“Environmental diagnosis consists of managerial decisions made by analyzing the significance
of the data (opportunities and threats) of the environmental analysis”
 Political Environment
 Economic Environment
 Social Environment
 Legal Environment

Political Environment:
Government actions which affects the operations of a company or business. These actions may
be on local, regional, national or international level. Business owners and managers pay close
attention to the political environment to gauge how government actions will affect their
company.
Political system based on two dimensions first is individualism as opposite to collectivism, the
second is democratic or dictatorship. The first way is individualism, which states that everyone
is acting on his or her own, making their own choices, and to the extent they interact with the
rest of the group, it's as individuals. Collectivism is the second way, and it views the group as
the primary entity, with the individuals lost along the way.

Economic Environment:
The country uses its limited resources, such as time, money, and energy, to meet its national
needs, and it has major factors affecting the country’s economic development level, which
including literacy level, technology, and agricultural dependence. The scope of economic
development includes processes and policies to improve the economic, political and social
well-being of its people through the country.
Economic System:
Political ideology is linked to the economic system. In general, there are three economic
systems:
Command Economy: A command economic or administrative directive that orders the
economy is the Soviet Union and the Eastern European Group, which is the nominal planned
economy of any of the formers, in which investment and distribution of capital goods is carried
out through economic and production plans in the economic field(Wilhelm, 1985; Alec
Nove,1987).Prominent in guiding the distribution of these economic system resources, rather
than hierarchical management of the core role of planning coordination. The command
economy is usually associated with a Soviet-style central plan that involves centralized
planning and management decisions (Devine, July 26, 2010). In the command economy, the
production and sales prices of a country's goods and services are planned by the government. In
simple terms, the company is state-owned. The government allocates resources for the benefit
of the entire society. However, because there is no private ownership, state-owned enterprises
lack profit-raising measures to increase efficiency and develop new products discovered in the
market economy, so the command economy is often stagnant. This concept of planned
economy is often related to socialism.

Market Economy: Comparison of command economic, the holding of unplanned economies,

especially the market economy, where production, circulation, pricing and investment
decisions are made by autonomous companies operating in the market, depends on the products
and services produced by the company and the quantity of production in the relationship of
supply and demand. (Gregory & Stuart; Paul & Robert, 2004).
The main feature of the market economy is that the factor market is the existence of the
dominant role of distribution, capital and production factors (Atwater, E., 1993). Free market
economy refers to the economic system in which the prices of goods and services are set freely
by the forces of supply and demand, and can pass through the government's policies without
intervention to reach their own balance. It usually requires highly competitive markets and the
private ownership of production companies. Whereas the role of the government is limited to
protect intellectual property rights, and consumers use their purchases to determine the
products and quantity produced, the role of the government is to encourage free and fair
competition among private producers. The United States is a similar example.

Mixed Economy: The mixed economy combines some elements of the market economy and
the command economy. The industrial policy or guiding plan in which the country has played a
guiding role by guiding the overall development of the market - guided but not able to replace
the market for economic planning - is sometimes referred to as a mixed economy(Schiller,
Bradley., 2010). In most cases, in the mixed economy system, the market has been subject to
varying degrees of regulatory control. The government’s wave of indirect macroeconomic
effects has influenced fiscal and monetary policies, designed to offset the historical
boom/depression cycle of capitalism, and unemployment. And income gap(Pollin, 2007). The
government often controls industries that are vital to national interests. Before the recent shift
to a market economy, France, the United Kingdom, and Sweden were mixed economies.

Legal Environment:
The legal environment of a country is very important because a country’s laws regulate
business practices, determine the way in which business transactions are performed, and
determine the rights and obligations of those involved in commercial transactions. Therefore,
the legal system will affect the attractiveness of a country as an investment or potential target
market. Contemporary law systems are generally based on three basic systems: civil law,
common law, religious law or their combination. However, the legal system of each country
combines individual differences with its unique historical form (Wood, 2008).

Common Law: The common-law system is now the system of most of the former British
colonies (including the United States) and is based on traditions, precedents and customs. The
source is judged by the judge in the case of the system, so the judge will review the previous
determination of how to deal with the current situation. In some areas, judicial decisions can
determine whether the jurisdiction of the constitution allows certain statutory or legal
provisions to be made or what the meaning is within the scope of the law. Such laws can
overturn topics involved in judicial decisions or codified contradictions or ambiguous decisions.
Anglo-American law system is currently in practice in Ireland, most of the United Kingdom
(England and Wales and Northern Ireland), Australia, New Zealand, Bangladesh, India
(excluding Goa), South Africa, Canada (excluding Quebec), Hong Kong, the United States of
America (not including the previous state-level Louisiana), and many other places (Sweet &
Maxwell., 2008).

Civil Law: The second legal system is civil law. It is built on a detailed basis. The system is
implemented in more than 80 countries, including Germany, Japan, Russia and China.
According to civil law, judges only have the power to apply the existing law, not to develop or
be modified by a judge (Badr, 1978). Only the enactment of legislation (rather than legal
precedents, such as the Anglo-American legal system) is considered legally binding.Usually
civil law is subdivided into four different groups:
• Chinese law: Mixture of civil law and socialist laws are used in the Republic of China.
• French civil law: in France, the Benelux countries, Italy, Romania, Spain and former colonies
of these countries;
• German civil law: in Germany, Austria, Russia, Switzerland, Estonia, Latvia, Bosnia and
Herzegovina, Croatia, Kosovo, Macedonia, Montenegro, Slovenia, Serbia, Greece, Portugal
and its former colonies, Turkey and Japan;
• Scandinavian civil law: In Denmark, Norway and Sweden. As historically integrated in
Scandinavian culture, Finland and Iceland have also inherited the system.
The general legal system can be considered the most prevalent in the world because it is the
most common law adopted (Wood, 2007; 2008).

Theocratic Law: Finally, theocratic politics is based on religious teachings. Their purpose is
not only for the moral guidance of individuals, but also as a basis for the legal system of a
country. The latter is especially common in the Middle Ages.
Today, the main religious religion is Islam, and some of the Christian groups in the Jewish and
Church Laws of Haraka. Islamic law is based on the Qur'an, which stipulates a set of ethical
rules governing all aspects of life, and the Islamic Shari'ah is the most widely practiced
theocracy law in the world (El-Gamal, 2006). However, the adoption of Islamic law in most
countries can only serve as a supplement to domestic law. It can involve all aspects of civil law,
including property rights, contracts or public law. In fact, many Muslim countries today are
practicing Sharia law combined with common law or civil law(Makdisi, John A., June 1999).
Contract Law: International companies must be familiar with the legal system of the country
in which they operate. This is because each system executes contracts in different ways. In
addition, the contract law is the legal system that governs the implementation of the contract.
Compared with civil law systems, contracts in common law countries are more expensive to
formulate, and contract disputes are often very hostile. However, under the common-law
system, judges can have greater flexibility in handling disputes.
Learning what laws should be used when companies from different countries sign agreements
is very important. Many countries including the United States have signed the agreement
“United Nations Convention on Contracts for the International Sale of Goods" or CIGS.
CIGS have developed a set of uniform rules that stipulate certain aspects of the establishment
and execution of daily contracts between sellers and buyers conducting business in different
countries (John Felemegas, 2000). But unfortunately, there are only about 70 countries have
approved CIGS (Peter Schlechtriem, 2005).

Property Rights and Corruption:

Property: Property rights means the right to legally use the resources legally and any income
that may be generated from using the resources. The rights to the property or the right to own
property are usually categorized as human rights for natural persons about their property. In all
human rights instruments, implicit or explicit restrictions exist to the extent that their property
is protected (Doebbler, 2006). The rights attribute of the Article 17 Universal Declaration of
Human Rights (UDHR) is as follows:

“(1)Everyone has the right to separate property ownership and ownership in association with
others.
(2) No one may be arbitrarily deprived of his property (Doebbler, 2006)”.
Private Actions: Personal torts of theft, piracy or extortion are done by individuals. Such
irregularities may occur in any country, but there are even bigger problems in countries with
weak legal systems such as Russia. After the collapse of communism, the Russian mafia forced
many companies to pay protection fees or face violence. The American Mafia plays a similar
role in the United States (Elliott, 1997)).
Public Action: When public officials such as politicians and bureaucrats infringe on property
rights, they may use Chavez's legal mechanisms to levy excessive taxes on Venezuela, or
require particularly expensive permits, or even just use the assets for state control. Public
misconduct may also be illegal. You may think that you need a bribe to gain the right to operate
in a country, just as Ferdinand Marcos did when he was in power in the Philippines.(Hamilton,
2017).
Corruption now appears in every country, but it is more common in countries with weak legal
systems. Transparency International has listed Finland and New Zealand as some of the least
corrupt countries in the world, and Bangladesh and Nigeria are among the most corrupt
countries.
Why is this discussion important to the company? Most companies are more cautious when
doing business in corrupt countries. Corruption limits economic growth (Mo, P.H., 2001).
Therefore, different countries have different laws on property rights to restrict it. For example,
it is like the "Fulfillment of Foreign Corruption Law" which limits the corruption in the United
States (Funk, 2010). It is illegal to bribe foreign government officials to obtain or maintain
business that foreign officials are entitled to. It stipulates that all listed companies must
maintain detailed records to determine whether violations have occurred. It also allows
convenient or quick payments to ensure that day-to-day government actions are performed
(Luthans& Doh, 2014).

Intellectual Property: Intellectual property is the product of intellectual activity, including the
intangible creation of the human wisdom, and mainly includes copyright, patents, and
trademarks. It also includes other types of rights such as trade secrets, public rights, personality
rights, and rights against unfair competition (Brad, 1999). In addition, there are also exclusive
or derivative types of self-contained exclusive agency rights, such as circuit design rights and
complementary protection certificates for pharmaceutical products (protecting them after
expiration of patents) and database rights (in European law). Works of art, such as music and
literature, as well as discoveries, inventions, words, phrases, symbols, and designs protect
intellectual property (Morin, 2014).

Patents: A patent is a form of government granting invention rights to the owner to exclude
others from making, using, selling, promising sales, and importing suitable inventions for a
limited period in exchange for publicly disclosed inventions. The invention is a specific
technical problem, which can be a product or process, and usually must meet the solution of
three main requirements: it must be new, not obvious, and it needs industrial utility.

Copyright: Authors, composers, playwrights, artists, and publishers have exclusive legal
rights to publish and process works in ways they deem appropriate, usually for a limited time
(Peter K, 2007)). Copyright may apply to a wide range of creative, intellectual, or artistic forms,
or "works." (Simon, 2001).

Trademark: Trademarks are identifiable symbols. Designs and names are usually formally
registered. Enterprises or manufacturers use this name or manufacturer to specify and
distinguish their products.
The inventors of intellectual property invested time and other resources for their development
and should therefore benefit from it. The law of intellectual property has been developed for
hundreds of years. But until the term "intellectual property" was used began in the 19th century,
by the beginning of the 21st century, the global intellectual property system was dominated by
high standards of European or American intellectual property law protection, and the purpose
of intellectual property law was to give Protect as little as possible to encourage innovation
(Mark A, 2015). To achieve this, the law grants individuals and corporation’s property rights to
the information and knowledge products they create, usually for a limited period. Once they can
make profits from it, it creates economic incentives for them (Doris Schroeder & Peter Singer,
May 2009).
Convention: Paris Convention for the Protection of Industrial Property - Intellectual Property
Protection Agreement signed by 96 countries, TRIPS - WTO members are required to grant and
enforce patents that hold copyright for at least 20 years and have a copyright of 50 years.

Legal and Ethical Issues:

When markets in foreign countries offer a higher profit potential than your home market, it
makes sense to expand internationally. As you prepare your expansion and research target
markets in other countries, you will often find that the legal structures and ethical frameworks
differ substantially from those in the United States. You must address the legal and ethical
issues of your entering these markets to make your expansion a success.

Employment: MNEs increasingly look to implement employment practices and policies

across borders, in the face of different and sometimes conflicting laws and customs. Key issues
include working time, fatigue management, overtime compliance, data privacy, enforcement of
post-employment restrictive covenants, and background checks. While taking a worldwide
position regarding employment practices may be a tempting solution, in fact it is necessary to
have a detailed understanding of the local labor and employment regime in each jurisdiction
where a company operates. Trying to implement one policy that would be applicable
worldwide is not effective or practical. (BERKOWITZ, 2015).Wages and the working
environment in overseas locations are often inferior to those in the United States, even when
you fulfill all local legal requirements.
If you hire workers there, you face the issue of what pay levels and working conditions are
acceptable. Applying U.S. standards is usually not realistic and often simply disrupts the
established market. An effective approach is to develop company standards which protect
workers while fitting into the local economy. Your standards must guarantee a living wage,
protect the safety of your workers and establish a reasonable number of hours for the work
week.

Corruption: Companies making payments to secure business that they would not otherwise
obtain are guilty of illegal actions under the U.S. Foreign Corrupt Practices Act. The payments,
even if they seem to be customary, are usually illegal under local laws as well. When your
company makes such payments, it is encouraging a local system of corruption through
unethical behavior. Smaller gifts, of a size that would not normally influence a major decision,
are considered ethical in some societies and may be legal under local and U.S. laws. If you find
that large sums are routinely required to do any business in a country, you may want to
reevaluate your decision to enter that mark. Bribery is one of the archetypal examples of a
corporation engaged in unethical behavior. Several problems can be attributed to business
bribery. First, it is obviously illegal—all countries have laws that prohibit the bribery of
government officials—so the foreign company engaging in bribery exposes its directors,
executives, and employees to grave legal risks. Second, the rules and regulations that are
circumvented by bribery often have a legitimate public purpose, so the corporation may be
subverting local social interests and/or harming local competitors. Third, the giving of bribes
may foment a culture of corruption in the foreign country, which can prove difficult to eradicate.
Fourth, considering laws such as the US Foreign Corrupt Practices Act (FCPA) and the
Organization of Economic Cooperation and Development (OECD) Convention on
Anti-Bribery (discussed in greater detail below), bribery is illegal not only in the target country,
but also in the corporation’s home country. Fifth, a corporation that is formally accused or
convicted of illicit behavior may suffer a serious public relations backlash.

Human Rights: The country into which you are expanding may not respect basic human rights.
The ethical issue facing your company is whether your presence supports the current abusive
regime or whether your presence can serve as a catalyst for human rights improvements. If you
find that you are supporting a regime that oppresses its citizens, engages in discrimination and
does not recognize basic freedoms, the ethical action is to withdraw from the market. If you find
that the regime allows you to observe human rights within your organization and that your
presence moderate’s human rights abuses, you may actively work to improve local conditions.
Racism is the belief that characteristics and abilities can be attributed to people simply
based on their race and that some racial groups are superior to others. Racism and
discrimination have been used as powerful weapons encouraging fear or hatred of others in
times of conflict and war, and even during economic downturns. This article explores racism
from around the world. Women’s rights around the world is an important indicator to
understand global well-being.
A major global women’s rights treaty was ratified by most the world’s nations a few
decades ago. There are approximately 370 million indigenous people spanning 70 countries,
worldwide. Historically they have often been dispossessed of their lands, or in the center of
conflict for access to valuable resources because of where they live, or, in yet other cases,
struggling to live the way they would like. Indeed, indigenous people are often amongst the
most disadvantaged people in the w Large, transnational corporations are becoming
increasingly powerful. As profits are naturally the most important goal, damaging results can
arise, such as violation of human rights, lobbying for and participating in manipulated
international agreements, environmental damage, child labor, driving towards cheaper and
cheaper labor, and so on. Multinational corporations claim that their involvement in foreign
countries is a constructive engagement as it can promote human rights in non-democratic
nations. However, it seems that that is more of a convenient excuse to continue exploitative
practices. (Shah, 2013)

Pollution: Not all foreign countries have environmental legislation that makes it illegal to
pollute. Companies may discharge harmful materials into the environment and avoid costly
anti-pollution measures. An ethical approach to your expansion into such markets is to limit
your environmental footprint beyond what is required by local laws. An ethically operating
company ensures its operations don't have harmful effects on the surrounding population. Since
your company has the knowledge and expertise to operate within U, S. environmental
regulations, it is ethical to apply similar standards in your new locations.
Risk in International Business
Every country presents its own investment opportunities. Before expanding your company
overseas, however, be aware of the additional risks of the foreign trade market. In general, the
risks of conducting international business can be segmented into four main categories: country,
political, regulatory and currency risk.

Country Risk: Weigh the benefits of your company doing business abroad against the
potential pitfalls. Poor infrastructure such as roads, bridges and telecommunications networks
can make it expensive to operate a business in another country. Economic conditions such as
high unemployment or a largely unskilled labor force can be barriers to entry. Rogue nations
may have untapped potential, but may also pose risks such as terrorism, internal conflict and
civil unrest. Anti-foreign sentiment among citizens, workers and government officials may also
make doing business abroad especially challenging. Other country risks include crime and
corruption. There are many excellent sources of information on the economic and political
climate of foreign countries. Part of the risk of investing overseas is determining what
percentage of a utility's portfolio should be diversified geographically, outside of the country.
Multilateral banks establish value ceilings for country lending based in part on the growth in
those countries and the likelihood of repayment. But there is no hard and fast rule for such
diversification for investor-owned utilities. Indeed, shareholders and other equity stakeholders
may push a company overseas for higher returns, despite higher risk. (W.Thurston, 2002).

Political Risk: Political risk is the threat of loss of assets, earnings potential or managerial
control because of political actions by the host country. In general, the more stable a country’s
government, the less political risk involved. There are three main types of political risk
impacting global businesses: ownership risk, operating risk and transfer risk. Ownership
political risk is the inherent risk in maintaining corporate property and the lives of host country
employees. Operating political risk is the threat of interference in day-to-day operational tasks.
Transfer political risk addresses the danger of a corporation losing the ability to transfer profits
and money from the host country back to the home country. (Hammond, 2017). Determine the
political climate of the country you hope to enter. An unstable or ineffective government will be
unable to protect your business interests. Lack of a strong foreign trade policy means that your
business will have to navigate through the nuances of allying with government officials who
may fall from power. An incoming government may not be business-friendly, and may decide
to increase tariffs or impose quotas.

Regulatory Risk: A sudden change in trade laws or a poor legal system exposes your
business to regulatory risk. For example, a country without clearly defined intellectual property
laws make it difficult for foreign software companies to protect their investments. Changes in
banking laws may limit your company's ability to repatriate money to your home country or
may limit access to funding. Without exception, all international transactions need to comply
with customs regulations, and these vary from one nation to another. Care must be taken by the
seller to ensure that they provide the necessary documentation to the buyer to avoid expensive
delays and a souring relationship. (BERGAMI, 2018).

Currency Risk: Currency risks are risks that arise from changes in the relative valuation of
currencies. These changes can create unpredictable gains and losses when the profits or
dividends from an investment are converted from a foreign currency into U.S. dollars. Investors
can reduce currency risk by using hedges and other techniques designed to offset any
currency-related gains or losses (KUEPPER, 2018). Fluctuations of a foreign country's
currency can diminish profits when converting back to the home currency. Analyze the risk and
rewards of making an investment in another country. The currencies of stable governments are
less volatile than those of less-developed countries. Hedging strategies could mitigate some of
the currency risk; however, your business is still at the mercy of the vagaries of the local
currency market. Sudden changes in monetary policy will also affect currency rates.
Conclusion:
Managing an international business differ from managing a domestic business because;
 Countries and culture are different.
 International business operation is more complex than domestic business.
 From one country to another country, a company relative competitiveness will vary.

Suggestions:
 When doing business in global commercial environment, knowledge of the impact of
cultural differences is one of the key to international business success.
 Respect the differences.
 We tend to have human instinct that ‘deep inside’ that all people are same, but they are
not.
 We work for great company with the world-wide appeal. This is the great opportunity
for all of us to learn to understand each other better and be more successful in our
international business.

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