Brazilians score highly on uncertainty avoidance -- where Americans may be willing to accept a certain degree of ambivalence and leave details unfinished, Brazilians are less likely to do so (Hofstede, 2009).
These differences can have a significant impact on business activities. At the broader cultural level, the government is much more actively involved in the economy in Brazil than in the United States. Where a firm can do business in the U.S. without running into anything more than routine government paperwork, in Brazil the government may take an active role in transactions of all sizes. The public interest and greater good are taken into consideration when making decisions, not just the firm-specific economic consequences of a deal. It might be difficult for American companies to adjust to this high level of government intervention in business activities, especially when this intervention occurs post-deal. Difficulties in dealing with the Brazilian government may be compounded by the country's relatively high rate of corruption (Michener, 2011).
At the firm-to-firm level, the cultural differences between Brazil and the United States can manifest in a number of ways. Because of the difference in power distance, Brazilians are likely to want to negotiate with their equals. If the CEO of a Brazilian company arrives at a meeting and the U.S. firm sends only lower level representatives, this will be taken as an insult, even if the lower level representatives are far more qualified to conduct the negotiation. The lower level of tolerance for uncertainty also means that contracts need to be negotiated and written in full. Details are not to be hashed out later after an agreement in principle.
Deals are also affected by risk aversion....
Stakeholder management is also defined through a series of escalation processes to ensure that GE senior management at the subsidiary, regional and global levels stay consistent with each other from a policy standpoint as well. GE relies on cross-functional teams within their strategy planning process that also enables greater stakeholder communication as well (Thomas, Bollapragada, 2010). GE also has extensive sustainability and "green" initiatives in place that also provide for
These can create significant management problems due to the impact of different cultures, taxation and pricing, the complexity of choosing the optimal structure for international business, high political risks and many other issues. The specifics of financial planning is determined by the following problems, including volatility in exchange rates, particularly the national taxation, revaluation of currencies, possible difficulties with the export of funds from abroad, problems with in-house transfer pricing,
International Business Environment Outline and critically discuss the criteria by which they judge whether or not a country is stable. International businesses faces a number of risks when they decide to operate overseas. Their ability to make sound investment decisions and to address those risks is directly related to the stability of the country in question. Firms therefore need to develop mechanisms for measuring stability before making the decision to enter a
International Business Over the last several decades, globalization has been having profound impact on the way businesses are operating. This has created shifts in the markets for a wide variety of corporations seeking to aggressively expand into these areas to increase their overall profits. A good example of this can be seen with a study that was conducted by the UN Conference on Trade and Development. They found that nearly 90%
Other tools frequently used in this approach are positioning surveys and moving-average trend following trading rules. Fund managers regularly use these patterns to take informed decisions for short-term investments (Exchange Rate Forecast, 2010). Exchange rate risk affects both revenues and costs, which in turn affects a company's marketing, production, and financial decisions (Shapiro, n.d.). If a company's revenues are down then they might find themselves with less money to produce
International Business Law -- Recognition International Recognition Law -- Recognition The number of states in the world map is constantly increasing. In the beginning of 20th century it was fifty five, in the middle it touched the figure of seventy five and by 2005 it soared up to 200 in total (Crawford, 2006). With increase in number of states, the concept of state recognition is also emerging on the international platform, where
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