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International Business Environment Essay Example

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International Business Environment

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International Business Environment. Advantage over other countries in one or more domains, which can be utilized by industries in other countries to take a competitive advantage over others (The Gemeni Geek, 2013).However, there is always a dark side of the picture, and in international business environment it is the cultural and political challenges and risks that exist for companies that are planning to target the international market (Ajami & Goddard, 2006). A wine manufacturing company, for example, has great limitations to expand in countries where there are heavy tax duties on wine import, or in countries where the competition is the biggest hurdle to conquer. Therefore, the environment setup in the international business is a complex one, comprising of absolute cultural, social and governmental values and laws.

This paper aims to provide a detail account of what opportunities and threats arises for an industry in a developed country to expand in a less developed and culturally diverse country (Hill, 2010).Institutional system of a country defines the business framework and environment of the region. In regions where the global market is emerging, it can be sated the National Institutional System is based on Neo- Liberalism. This defines that the ownership patterns and the extent to which the government is involved in the international business. The report of (Friedman, 2009) illuminates that in the emerging markets the distribution of wealth and resources are done on a broad and diverse scale. This gives more choices for foreign investors to invest in that country or state (Friedman, 2009). Moreover, many researches highlights that neo-liberalism can be seen as a positive initiate for privately owned companies, as governmental influence from the business market is decreased (Griffin & Pustay, 2010).Comparing the institutional system of UK with that of India, there are certainly great differences that are visible and pivotal to explore and design company’s strategies accordingly. Reviewing the economic system of the UK, it is much stable and balanced as compared to that of the Indian economic system. The labor and offshore costs in any country in he UK is far more than that in India and that can be taken as the opportunity of off shoring for the company (Ghemawat & Reiche, 2011). (Casson & Lundan, 1999) studies the changing institutional framework of the Asian market and India in particular. The labor market of India is more extensive than any other in the entire world,. International Business Environment.

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