Currency downturns and upturns that cannot be controlled by the business can also affect the receptivity of imports, exports, and the costs of doing business abroad. Doing business internationally can 'hedge' risk in the sense that a downturn in one arena can be compensated by an upturn in another area, but during times of general economic downturn, the risks can also be greater, rather than balanced. This can be seen in the wake of the current credit crisis -- because of interconnected global operations, when American real estate 'sneezes' the world's credit market 'caught cold' in the subsequent deep-freeze. Finally, expanding operations too rapidly without adequate research about local culture and needs can also result in imposing the home country's organization upon a foreign workforce, one of the pitfalls Wal-Mart fell into during its brief tenure in Germany. Wal-Mart instructed German clerks to bag customer's groceries, even though Germans were appalled by the idea of strangers touching their groceries. Clerks were forced smile at shoppers, which resulted in male customers complaining that employees were 'coming-on' to them. Worse yet, unions are strongly supported in Wal-Mart, while Wal-Mart discourages unionization (Wal-Mart struggling in Germany, 2005, Business Week)....
No company, not even the world's largest retailer is immune to the dangers of globalizing one's organization.
" (Veeramani, 2004) Stated as contributors to the export success of China are those as follows: 1) Favorable exchange rate; 2) Low wages; 3) Availability of labor; 4) Large domestic market; 5) Huge volume FDI inflows etc. (Veeramani, 2004) India is not far behind except the gap existing in the FDI volume into China and India, which remains a large gap. The FDI for India has been of much less importance as compared to China except in
international business expansion process. International recruitment and selection brings a number of challenges for business organizations. They not only face difficulties in hiring the desired skillful staff from the host country, but may also have to deal with severe financial and cultural diversity issues. Through this research study, an effort has been made to highlight the major challenges and issues which make the international recruitment and selection process more complex
For example, Shu-Acquaye (2007) cites the basic differences in the legal systems in various parts of the world as contributing to the different approaches to corporate governance. Likewise, Shu-Acquaye cites these differences and adds, "The American corporate governance system adheres to the idea of shareholder primacy. Because the United Kingdom, Austria, and Canada share a legal system based on English common law and equity principles, they are similar to
However, the expatriate has the net advantage of significantly superior product knowledge and control, even if the costs of maintaining him are also higher. Foremost, the expatriate must be able to travel from the host country to the home country in order to conduct face-to-face meetings with his superiors and inform them of the progresses made. Traveling however consumes time and energy and the employee could become tired and
G. culture shock, potential solutions and/or considerations to better overcome potential negative consequences are examined during the proposed literature review. Research Questions to Guide Exploration The research questions proposed for this study, presented in the previous chapter will help ensure sources remain in tune with proposed aims and objectives. 1. What challenges/scrutinizes currently confront Middle Eastern Students attending George Mason University, located in the heart of Northern Virginia? 2. How did 911 impact policies related
Business plan for a Multi-National Enterprise that conducts Foreign Direct Investment Description of the MNE Paradise Baby Food Company (PBFC) proposes to invest in a factory in India, one of the countries where Foreign Direct Investment (FDI) is growing at a momentous pace, and from there not only create its unique product but also have access to a growing market that is interested in western products. PBFC intends to develop a complete
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