Good Example Of Critical Thinking On Reflective Paper

Doing business internationally presents new opportunities for growth and profitability. It may seem very attractive; however, it is also associated with several risks and challenges. There are key issues that must be addressed to be successful in doing business globally.
One issue that confronts a company that wishes to do business in the global market place is the country differences. Some of the differences include legal issues, language barriers, political issues and cultural differences. Before entering a new market, it is important to know the trade laws and regulations in place, the taxes and import duties imposed, intellectual property rights and if there are any investment barriers. Some countries do not allow ownership of land while others have trade quota or trade agreements with other nations. To deal appropriately with the legal issues, it would be best to get the service of an international lawyer who is more knowledgeable on the laws of the home country.
Another major consideration is the differences in culture. This is where the phrase “go global, think local” becomes relevant. A perfect example of a company which has gone global and is successful at it is McDonald’s. It had to change some of its product offerings to adapt to the culture and taste preferences of the country where they operate. In India, they were able to penetrate the market by offering vegetarian burgers instead of their signature beef burgers. One learns a very important lesson in the McDonald’s experience, that is, a company cannot simply impose its products or services to an overseas market. The traditions, norms and beliefs are some of the cultural intricacies that cannot be overlooked in a successful business venture in a foreign market. The marketing mix strategies must be adjusted.
Human resource management is another issue that must be faced by a global enterprise. Staffing decisions have to be addressed like the hiring of locals or bringing in of expats. The company should familiarize itself with country’s labor laws pertaining to compensation packages, labor unions, hours of work and working conditions. Supervisory oversight may be a potential problem because of the distance involved. The time zone difference is a contributory factor to the challenge. Decision-making may take much longer. If the people overseas are not properly managed and controlled, there can be instances when the quality of the company’s product or service will not be according to the standards that the head office has set.
Intercultural communication is one of the more challenging issues in conducting business globally. It is often difficult to understand people whose first language is different from one’s own. The non-verbal communication makes it even tougher as some gestures would signify something different from those used in other countries. Awareness of the acceptable business etiquette in the foreign country is a must.
The financial component of the business is not without risks too. Doing business internationally involve a financial risk. The foreign exchange rate movement may either have positive or negative effects on the income of the venture. The costing and pricing strategies will be affected by these movements. In addition to the foreign exchange risk, the accounting standards may not necessarily be the same as that of the home country. Multinational taxation is another consideration.
Many companies recognize the fact that in this era of globalization, the only way to survive is to go international. Yes, that may be a reality but to be truly successful in the overseas market, there is a need to have a fundamental shift in mindset because crossing borders means being open to new way of doing things. The issues mentioned above are just some of the considerations that must to be addressed by an enterprise which wants to go global. There are indeed a plethora of complexities in expanding internationally. Risks and opportunities abound but with the right amount of research, strategic planning and the proper mindset, global success may not be far behind.